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-   -   Fidelity IRA question (http://archives1.twoplustwo.com/showthread.php?t=542414)

ItalianFX 11-09-2007 07:36 PM

Fidelity IRA question
 
Mods, please don't lock this.

So I'm a little risk-averse it seems. I currently have a Roth IRA account with Fidelity. Well, I talked to a financial advisor, for anyone who is familiar with that thread, and she wanted me to liquidate out of Fidelity and hook up with some mutual funds in the American Funds. Well, it's been like 3 months now and it still hasn't switched over. I'm getting pretty pissed about it, so I'm thinking about just saying "screw it" and staying with Fidelity.

Anyone have any opinions? I know mutual funds are regarded as bad investments, but are they really for someone who is risk-averse? Maybe I can buy some Gold funds with Fidelity?

My next question is, I have about 7.5k in Fidelity. If I stay with it, what is the best thing to go with? I think the commissions are pretty hefty, but anything long term should be alright. My friend recommended the Tocqueville Gold Fund, which I was thinking about putting some money into. Is it too late or no?

Thanks for the help.

napkins 11-09-2007 08:41 PM

Re: Fidelity IRA question
 
How well off is your relationship with your adviser? American funds have fairly high expense ratios, and I wouldn't be surprised if your adviser was just trying to make money off you by suggesting these types of funds.

Assuming this account is for retirement only and you have no other accounts: If I were you, and wanted to keep things simple I would just move all my money to a Vanguard account and either buy a Target Retirement fund or go with a Total Market allocation based upon my age/risk tolerance. I would not be putting my retirement money in any other fund besides the aforementioned.

ItalianFX 11-09-2007 11:53 PM

Re: Fidelity IRA question
 
My mom works at the bank and that is how I got in contact with her. It was free for me as far as I know, but if she makes money off the transaction, then I could see it. I find it hard to believe that she would con me like that, but then again, I'm probably too naive to know better.

I was just wondering because I'm getting tired of waiting. I have a large portion of my money in mutual funds right now and they have done well for me in the past 3 months. I'm more concerned with my IRA right now because I sold my two ETFs because Fidelity was supposed to transfer after I liquidated, but it still hasn't happened. I'd like to make some money and I think if I go to American Funds for my IRA, it may be restrictive where I can manuever at all.

Jimbo 11-10-2007 01:28 AM

Re: Fidelity IRA question
 
I put $10,000 in a Fidelity Energy fund around 1980 and today it is worth nearly $128,000, and this is not a tax deferred investment so I don't have a problem with this one in particular.

They did have a bit of a problem with that post market trading scandel but I feel they have now cleaned up their act.

Jimbo

Jeff W 11-10-2007 05:51 PM

Re: Fidelity IRA question
 
American Funds are a joke... if you're going to switch, switch to Vanguard. Fidelity's index funds are fine as well.

ItalianFX 11-10-2007 07:59 PM

Re: Fidelity IRA question
 
I think I'm going to keep my mutual funds in American Funds for at least a year and see what happens.

I'm more concerned with my IRA because if I decide to do some trading within it, I'd like to actually be able to navigate.

TheMetetron 11-11-2007 02:08 PM

Re: Fidelity IRA question
 
I love how people tell you that your financial adviser is screwing you and you still listen to the advice. I'm not sure if your mom is aware of it but the financial adviser is definitely aware of it.

ItalianFX 11-11-2007 02:18 PM

Re: Fidelity IRA question
 
[ QUOTE ]
I love how people tell you that your financial adviser is screwing you and you still listen to the advice. I'm not sure if your mom is aware of it but the financial adviser is definitely aware of it.

[/ QUOTE ]

I understand what they are all saying. Isn't there some kind of fee for not holding longer than a year?

I got into American Funds because while I was in the Police Academy, one of the guys in my class was a financial advisor and he recommended them. I opened up an account through him. He said that he got paid based on the amount that the people invested through him, not with the fees that were associated with the funds. It sounded good so I did it. Plus, I just wanted to get my money working.

So the main reason why I'm sticking with those American Funds is because I thought there was something to do with not holding at least a year? No?

napkins 11-11-2007 09:41 PM

Re: Fidelity IRA question
 
[ QUOTE ]
[ QUOTE ]
I love how people tell you that your financial adviser is screwing you and you still listen to the advice. I'm not sure if your mom is aware of it but the financial adviser is definitely aware of it.

[/ QUOTE ]

I understand what they are all saying. Isn't there some kind of fee for not holding longer than a year?

I got into American Funds because while I was in the Police Academy, one of the guys in my class was a financial advisor and he recommended them. I opened up an account through him. He said that he got paid based on the amount that the people invested through him, not with the fees that were associated with the funds. It sounded good so I did it. Plus, I just wanted to get my money working.

So the main reason why I'm sticking with those American Funds is because I thought there was something to do with not holding at least a year? No?

[/ QUOTE ]

There's only a penalty if you withdraw money from your IRA. As for your adviser, he is either:
1. Lying
2. A [censored] adviser

I guess there could be a fee that American Funds might charge, that's something you'd have to check out. If so, just wait a year and transfer your money. Not too big a deal.

ItalianFX 11-11-2007 10:11 PM

Re: Fidelity IRA question
 
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I love how people tell you that your financial adviser is screwing you and you still listen to the advice. I'm not sure if your mom is aware of it but the financial adviser is definitely aware of it.

[/ QUOTE ]

I understand what they are all saying. Isn't there some kind of fee for not holding longer than a year?

I got into American Funds because while I was in the Police Academy, one of the guys in my class was a financial advisor and he recommended them. I opened up an account through him. He said that he got paid based on the amount that the people invested through him, not with the fees that were associated with the funds. It sounded good so I did it. Plus, I just wanted to get my money working.

So the main reason why I'm sticking with those American Funds is because I thought there was something to do with not holding at least a year? No?

[/ QUOTE ]

There's only a penalty if you withdraw money from your IRA. As for your adviser, he is either:
1. Lying
2. A [censored] adviser

I guess there could be a fee that American Funds might charge, that's something you'd have to check out. If so, just wait a year and transfer your money. Not too big a deal.

[/ QUOTE ]

The person I am going through now is not the same person as the guy in my police academy. I'm going to look into the fees. I'm actually thinking about withdrawing my money from American Funds and looking into some personal active management while keeping my IRA in Fidelity.


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