Investment Companies?
March 24, 2010 by
Filed under investment companies
Recently cd’s matured and a financial advisor for the Citizens bank recommended I make an early with draw and commit them the Oppenheimer investment Co. Also he recomended removing my IRA’s form my CU and relocating them to IRA (mutual funds) which would cost me a 6 month penalty and also a payment to (Op) to manage the account. Can any one give me a quick education or direct me to a site that rates these investment Co. Seeing I have had one meeting with this person I am reluctant to remove and relocate my lifes savings…Thanks Charles
First of all do not go to Oppenheimer for a fund. They charge a commission on their funds and this guy who is telling you to do this will get a cut. Do not remove anything that will charge you a penalty. If you want to invest in a mutual fund the best place is with Vanguard they have more funds and you wont pay any commissions. Yes it is good to invest in a mutual fund for your IRA but if you do go with a ROTH IRA you do not pay any tax on your profits. But you cant deduct you contribution but it is better for you in the long run. Go to Vanguard.com Or call them they will help you. They are very good and most of all honest. Only invest in a no load fund that means no commission. If i were you I would change banks I don’t like the one you are with I dumped them a long time ago. If you need any more help feel free to contact me.
Good instincts.
I would caution you against early withdrawls with CD’s. The penalty often is high. The preceived benefits of investing in a specific fund now is worrisome. True you would get some money off your tax bill by funding your IRA, but you lose the interest on the 6 month CD in all likelihood. Don’t get me wrong I want you to have an IRA that is funded…but wisely.
I do not know your situation, but there is nothing wrong with waiting until the CD is matured. Then consider funding your IRA. Trying to rush you into this process is dubious. Plus, there are cheaper ways to invest in your IRA (e.g. ETF’s with Vanguard). In other words why Opp. Fund’s? Whats the cost of the fund (under 1%)?
Consider visiting bankrate.com or Motley Fool’s site fool.com as they both will rank investment companies. I would advise you read Investing for Dummies by E Tyson…your library will have it.
Good Luck!
Don’t withdraw the CD’s at a penalty. BAD CALL. The real question here is what do you need the money for? Are you going to need it any time in the next 5 years or are you saving up for a retirement 30 years away. Big difference.
Never invest in equity (Stocks or mutual funds based on stocks) if you might need the money in the next few years.
If you do have the time to invest in equity Its not a bad idea to do so. But probably not worth the penalty. Also if you’re talking your life savings you don’t want that in one thing in any case. You want it in many many things so a blow to one part of the market won’t cripple you. Some bonds, some stocks, maybe some CD’s.
As for mutual funds. I advise folks to look at S&P 500 index funds. The S&P 500 represents most of the money in the stock market. Its so broadly diversified in and of itself that it helps mitigate risk. Also as an index funds the management fees are very very reasonable. Lots of people sell these index funds at very competitive rates.