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Broker Strategies
Posted: Thu Oct 27, 2011 10:36 am
by RickV42
Permanent Portfolio – check
Tax efficient use of accounts – check
Some physical gold –check
I bonds – check
Lots of spaghetti – Check
Chaps, leather, individual, one each – Check
Broker Strategy - ?
What is everyone doing and/or thoughts on what brokers to use and why?
I have one discount broker with bulk of assets and have a small 401K at Merrill Lynch, part of BOA, which I am not exited about. I am thinking of opening another account at Vanguard to diversify.
Diversification is one thing to do, but are there other ideas? Are some brokers safer than others? Invest up to SIPC limits with each broker? Other ideas to consider? Don’t worry about it?
Re: Broker Strategies
Posted: Thu Oct 27, 2011 11:38 am
by AdamA
RickV42 wrote:
Diversification is one thing to do, but are there other ideas? Are some brokers safer than others? Invest up to SIPC limits with each broker? Other ideas to consider? Don’t worry about it?
Very hard to predict. I'd use a couple of the older firms such as vanguard or fidelity, hold some physical gold, and maybe buy some PRPFX directly from The Permanent Portfolio.
Re: Broker Strategies
Posted: Thu Oct 27, 2011 6:10 pm
by MarySB
I think most of us would agree that Fidelity and Vanguard are great places to park your portfolio. Some would advise USAA, as well. Recently, they lowered their rates to be more in line with Fidelity and Vanguard.
It probably goes without saying that one should not listen to their "advisors". Just this week, I asked one how I could purchase an I Bond, thinking that I needed to transfer funds from my IRA held with them. I was told there were only two options:
1. Buy on the secondary market
2. Buy a fund that invests in I Bonds (is there one?)
I was also advised that the minimum purchase was $30000.
It's scary, to me, that I know more than the "advisor". I'm not that bright and have no specialized education in investing, as I'm sure this guy at least SHOULD have. Even I know that the maximum purchase per year is $10000 ($5000 each paper and electronic) until January 2012 and $5000 maximum (electronic only) starting in 2012. And his advice that there are only two ways to purchase is designed to line his own pockets.
I feel bad for anyone who takes advice from brokers.
But, we already know that, right?
Re: Broker Strategies
Posted: Fri Oct 28, 2011 12:02 am
by MediumTex
MarySB wrote:
I think most of us would agree that Fidelity and Vanguard are great places to park your portfolio. Some would advise USAA, as well. Recently, they lowered their rates to be more in line with Fidelity and Vanguard.
It probably goes without saying that one should not listen to their "advisors". Just this week, I asked one how I could purchase an I Bond, thinking that I needed to transfer funds from my IRA held with them. I was told there were only two options:
1. Buy on the secondary market
2. Buy a fund that invests in I Bonds (is there one?)
I was also advised that the minimum purchase was $30000.
It's scary, to me, that I know more than the "advisor". I'm not that bright and have no specialized education in investing, as I'm sure this guy at least SHOULD have. Even I know that the maximum purchase per year is $10000 ($5000 each paper and electronic) until January 2012 and $5000 maximum (electronic only) starting in 2012. And his advice that there are only two ways to purchase is designed to line his own pockets.
I feel bad for anyone who takes advice from brokers.
But, we already know that, right?
I assume they thought you were talking about TIPS.
Re: Broker Strategies
Posted: Fri Oct 28, 2011 12:41 pm
by MarySB
Seriously? Are they anywhere close to the same thing, or is that why you think they said the minimum purchase price was $30000?