If invest through fund family, should I open another IRA in fund family? Which way is better to invest , IRA in fund family or my own IRA?

 

  • muncie birder 7:04 am on October 31, 2009

    In my opinion it is better to have an independent IRA. That way you have more options than just a bunch of funds in one fund family. For example, you can then invest in ETF index funds which have much lower expenses. You may also find a fund in another fund family that takes your fancy.

    If, however, you do not wish the hastle, then start your IRA with that fund family.

  • MR MONEY 7:04 am on October 31, 2009

    As your investments increase in size, you will receive larger discounts by having investments at one fund family. Also, as your situation changes, you can move your investments from one fund to another without paying additional fees.

    I recommend investing at a fund family that has a strong history and a broad range of investments (American, Franklin, Oppenheimer, or Alliance Bernstein). Your annual fee will also probably be less if you open the account through the fund family rather than an outside firm (Merrill, Raymond James, Dean Witter).

    Final tip, regarding allocation, diversify between growth, value and international. Don’t put all your eggs in one basket.

  • swenjj 7:04 am on October 31, 2009

    good advice, its very easy to start an ira at a fund family as well, just call them and they do all the work, or go to their websites and you can do them there usually, very nice to have the option of changing funds without extra fees