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View Full Version : OT: Investing $30,000 where?????


chalex
07-05-2006, 07:17 PM
Hi,

We purchased a lot in our neighborhood this year with the intention of building a new home and selling this one. However we have been approached to sell the lot for nearly $40,000 more than we brought it for. I figure by the time we pay off our debt and pay taxes we should still have close to $30,000 left.

I know nothing about investing money. We do have savings accounts with ING but have never played the stock market,though I probably should if I want to be able to live comfortably when I retire.

Anybody have any ideas as to where I should invest this money? DH wants to use the money to add/make cosmetic improvements (screen porch,granite countertops etc) to our existing house but we don't really need to.

Angie

nightowlky
07-05-2006, 07:46 PM
With that kind of cash, I'd be talking to a financial advisor who would help you determine if you want to use that to help prepare for retirement or how to maximize it for short-term goals.

mickeyfan2
07-05-2006, 07:51 PM
There was an article in our paper on Sunday. According to the article cash will out perform stocks and bonds over the next 6 months. They were talking about 6%+ interest shortly. Depending on your age and tax rate there are other options than the cash options. 1) Vanguard 2025/2035/2045 funds. The fund you pick is the one closest to the year you turn 65. 2) If your tax rate is high, then consider tax free municipal bonds. The rate is higher when you consider how much pretax interest you needed for the tax free bonds.

disneysteve
07-05-2006, 07:57 PM
There is no simple answer to this question. It depends on many factors, particularly your age and what the rest of your portfolio looks like currently. Do you both work? Do you both participate in employer-sponsored retirement plans? Do you have IRAs? Do you have an adequate emergency fund? How is your current portfolio allocated? Do you have any debt other than your home?

You need to answer all these questions and more. If you need assistance, meeting with a fee-only CFP might be the way to go.

grlpwrd
07-05-2006, 09:31 PM
Hi,

We purchased a lot in our neighborhood this year with the intention of building a new home and selling this one. However we have been approached to sell the lot for nearly $40,000 more than we brought it for. I figure by the time we pay off our debt and pay taxes we should still have close to $30,000 left.

I know nothing about investing money. We do have savings accounts with ING but have never played the stock market,though I probably should if I want to be able to live comfortably when I retire.

Anybody have any ideas as to where I should invest this money? DH wants to use the money to add/make cosmetic improvements (screen porch,granite countertops etc) to our existing house but we don't really need to.

Angie


I think there are too many variables to give you a general answer. If you don't want to go to a Certified Financial Planner, please do as much research as you can. There are reliable sites like www.money.com , www.bankrate.com , www.kiplingers.com, and www.blackenterprise.com that can point you in the right direction.

Good luck! :wizard:

crisi
07-05-2006, 09:48 PM
Do you have kids? A 529 can be a nice choice for most people. Its used to fund education.

If you don't have a rainy day fund, $30,000 will get yours going - and probably have some left over (six months expenses is the "rule of thumb") - you want to keep that fairly liquid - a money market account probably.


Are you adequately saved for retirement? Putting enough in a IRA to get the tax break would be a good choice.

I'd probably do the rainy day fund first use money left over in an IRA - unless your retirement is well funded, and the rest to kids college. If that is well funded - time to blow it on granite countertops, play the stock market, or give to to charity......

Cheshire Figment
07-06-2006, 05:16 AM
If you have held the property for less than a full year any gain is Sort Term which is taxed at your full rate. To get an idea of what you will owe run last year's income tax return showing about $40,000 more in income than last year (plus and other increases expected) and don't forget to do both Federal and State. Also, If it a legitimate offer ask them if they will pay all closing costs.

If you possibly can, try to delay the closing until you have held the property for more than a year, then your maximum tax rate for the sale would be only 15% rather than your real rate (again, if you used a computer program for your taxes, plug the gain in as Long Term Capital Gain and see the difference).

And if you had been thinking about building a new home, what are the shortcomings of your current home which you might want to upgrade as long as you have the chance to do it without going into debt.

bhoffman
07-06-2006, 11:53 AM
I agree with the other posters, you must meet with a financial advisor. My husband has been with Edward Jones Investments for 14 years. If you don't have anyone local p.m. me and I can shoot you his 800 number and he can advise you over the phone (free of course). Good luck and congrats on your sale!!! :cool1:

Disneyrsh
07-06-2006, 11:59 AM
:thumbsup2 :thumbsup2 :thumbsup2

mickeyfan2
07-06-2006, 12:03 PM
How do DH and you feel about not building the new home. Would you build in the future anyway? Is your existing home big enough to be your forever home? If you find that you will build again anyway, keep the land. You windfall today might be very costly for you if you try to buy land again tomorrow. Just a thought.

crisi
07-06-2006, 12:15 PM
If you possibly can, try to delay the closing until you have held the property for more than a year, then your maximum tax rate for the sale would be only 15% rather than your real rate (again, if you used a computer program for your taxes, plug the gain in as Long Term Capital Gain and see the difference).

This is worth repeating. A few months could save you thousands in taxes. Don't be in a hurry to sell.

chalex
07-06-2006, 03:34 PM
To answer some questions:

DH and I are middle aged 50/40's
DH is p/t self employed and I work p/t as substitute teacher (making very little).
We have $8,000 in an account for emergencies.
Both have pensions from previous jobs that should pay around $4000 a mth when we reach 60.
Children have approx: $5.000 each for college and we add $100 every month to their accounts.
We have 3 times the amount of our outstanding mortgage balance in savings, so we could pay off our mortgage tomorrow if needed.
Savings are in a regular account earning just 5%.

Do we need to build a new house? No
The house is 2000 sq ft with 3 beds and baths. We built it 7 years ago. The only thing I would probably add is a large 3 season room.
DH is a handyman/remodeler so there would just be the cost of materials,no labor.

bhoffman- thanks for the offer. We actually know someone who works for Edward Jones. We haven't ever contacted a financial planner. Got burned by an insurance salesman on a life insurance policy linked to the stocks that was supposed to help us with our retirement but it's not worth the paper its written on and its still costing us $125 a month.
Must admit I am clueless on financial planning though? Do Edward Jones just sell their products?

Regarding taxes:
Total income $22,000 last year.
Lot was brought Oct 2005.
Would short term capital gains tax be that much more than long term in tjos situation?

Angie

staceyfe
07-06-2006, 03:53 PM
With all due respect, I am a current customer of Edward Jones and I would not recommend going that route unless you are a person who isn't very "hands-on" when it comes to money. First, they will try to sell you only investments on which they make a commission, which limits you. Second, their statements are absolutely the worst I've ever seen. They are not easy to read at all!! If I had it to do over again, I'd have invested in Vanguard rather than mutual funds Ed. Jones is selling me--in fact, I've been trying to get everything changed over. Their sales fees are pretty steep, in my opinion. But if you want an agent to handle everything for you, by all means, give Ed Jones a call. Unfortunately, I'm one of those anal people that has to know every little detail.

Marie17
07-06-2006, 04:04 PM
Is that how much DVC costs? We also get a "bonus" although it is not 30k - it is a very decent amount and this year we have nothing to use it on - last year was a downpayment on a house. I would like to know how much 14-21 days would cost at a DVC resort and do you have a reduction in cost if it is paid upfront?

Thanks.

Don't know about Edward James as we use someone else - who does charge fees (and we even have some front loaded accounts - yikes to some people) I like not knowing every little detail in some of the accounts. This way it is not like I am feeling like I am going to cry over some spilt milk - I rather not know the daily fluctuations. We look at some of those accounts every 6 months or so. On the 401k/profit sharing accounts we look at those every 3 months and you can always change them with no problem. We are currently trying to find out when/if a ROTH 401k is going to be offered as we only have a traditional 401k - and we would prefer to have a roth 401k.

disneysteve
07-06-2006, 04:41 PM
DH and I are middle aged 50/40's
DH is p/t self employed and I work p/t as substitute teacher (making very little).
We have $8,000 in an account for emergencies.
Both have pensions from previous jobs that should pay around $4000 a mth when we reach 60.
Children have approx: $5.000 each for college and we add $100 every month to their accounts.
We have 3 times the amount of our outstanding mortgage balance in savings, so we could pay off our mortgage tomorrow if needed.
Savings are in a regular account earning just 5%.
I don't see any designated retirement savings listed (I don't know what's in that 3 times mortgage amount). If that is accurate, then that is where your 30K needs to go. You can each put in $4,000 into a ROTH ($5,000 if one of you is 50+). So $9,000 for 2006 and I'd set aside the remainder and put in another $9,000 in January 2007 and $11,000 in 2008 (when the limits increase). In between, park the money in a top-yielding CD (check bankrate.com for the best rates).

Yes, I know you have pensions but those are dropping left and right. There is a big article on the topic in this month's issue of Kiplingers. I wouldn't be counting on those pensions to fund your retirement because there is no way of knowing if they will still be in existence or if they will pay out the promised amounts. You've got enough years ahead of you to build up a decent nest egg just in case the pensions don't materialize.

leight
07-06-2006, 05:16 PM
Another less expensive route, is to call an investment specialist at T Rowe Price. They are salaried, not commissioned so the guidance they provide is based on your situation and how you answer their questions. They do only talk about T Rowe Price mutual funds, but you can look at their website too. All of the funds are no load and it costs nothing to talk to them.

dzneprincess
07-06-2006, 05:21 PM
We had a similair amount of money t oinvest about 1 and 1/2 years ago. My DH really wanted to invest in GOLd. The man hardly ever asks for anything, so I let him, with the understanding that we would at the minimun get out if the value went below what we put in. He has sold the coins once, and made a nice profit and has moved onto another type of gold coin and he is doing very well. He has a little more than doubled the $$

edit to add that I am very proud of him. I was very leery of doing this, but it has all worked out and worked out well!! If you need more info let me know

DVC Sadie
07-06-2006, 05:55 PM
Please, please go see a Certified Financial Planner that is fee based and NOT associated with any brokerage houses. They can help you in both long term and short term goals. They either work by the hour for you or make a percentage of what you make.

We are blessed that we have used a CFP and our rate of return has been huge.

I would not even think about buying into DVC unless you have all of your other ducks lined up, such as, retirement, college funds and long term goals.

disneysteve
07-06-2006, 06:32 PM
Please, please go see a Certified Financial Planner that is fee based and NOT associated with any brokerage houses.
I agree 100%. Stick with someone who is independent, not paid by commission and not employed by a particular financial services company. Otherwise you are getting someone with a built-in bias, not where you want to get your advice.

Disneyrsh
07-06-2006, 06:54 PM
Is that how much DVC costs? We also get a "bonus" although it is not 30k - it is a very decent amount and this year we have nothing to use it on - last year was a downpayment on a house. I would like to know how much 14-21 days would cost at a DVC resort and do you have a reduction in cost if it is paid upfront?



The minimum buy in for DVC right now I think is 12,500 from Disney.

Disneyrsh
07-06-2006, 07:02 PM
I would not even think about buying into DVC unless you have all of your other ducks lined up, such as, retirement, college funds and long term goals.

I agree

DVC Sadie
07-06-2006, 07:32 PM
And since the per point prices continue to appreciate, I see no reason why we'd want to put our money in a CD, where yeah, it can earn about 5% right now, but you can't go to Disney on it.

I also think you should never finance a DVC, but the last time I mentioned that it started a huge flame war.

So I'm not 'officially' saying that I believe that.

Even if I do.

Not saying it.

Didn't hear it from me....

You won't get flamed by me by saying it is not a wise financial move to buy DVC by financing. The interest rate has gone up again from what I have been seeing on another board.

The only reason I said not to buy into DVC is because unless you have everything else in place (financially) then DVC or any WDW vacation is a luxury IMO therefore a want and not a need.

I still stick to my original post by saying how important getting a good CFP is in getting everything you could need for both short and long term goals. We only have a minimum amount of money earning less than 5.05%, everything else is in a variety of much higher earning venues.

disneysteve
07-06-2006, 07:37 PM
The only reason I said not to buy into DVC is because unless you have everything else in place (financially) then DVC or any WDW vacation is a luxury IMO therefore a want and not a need.
Well actually, even if you have everything in place, DVC/WDW is still a luxury and a want. Just because you can afford something comfortably doesn't make it a need.

grlpwrd
07-06-2006, 07:41 PM
We had a similair amount of money t oinvest about 1 and 1/2 years ago. My DH really wanted to invest in GOLd. The man hardly ever asks for anything, so I let him, with the understanding that we would at the minimun get out if the value went below what we put in. He has sold the coins once, and made a nice profit and has moved onto another type of gold coin and he is doing very well. He has a little more than doubled the $$

edit to add that I am very proud of him. I was very leery of doing this, but it has all worked out and worked out well!! If you need more info let me know

:wave2:

My dh does this and has been doing this for years. I am still very leery of him doing this (lol) and now has moved onto investing in stock, but he seems to know what he is doing and only does it with his "fun" investing money.

We have a CFP and we fit this in our plan. It's risky, though. It' s best to have all your hens in a row first, though, before doing something like this or buying something like DVC.

bhoffman
07-06-2006, 08:26 PM
DVC Sadie - A CFP is NOT code for independent. My husband is a CFP and is employed by a large corporation. It has NOTHING to do with who you work for, so just seeking out a CFP is not going to accomplish what you claim it will. It is just an accredidation that you passed some tests.....

Edward Jones does not have any of their own mutual funds, as many other brokerage firms do. That is why DH loves this company so much. They don't "push" any particular product because it will do anything for them. Whoever claims that brokers only sell things that make them more money should meet my husband. He would not have made it this long with Jones if he did. Their fees are very fair and in fact, it depends on the broker but my husband often reduces his fees. He has been offered hundreds of thousands of dollars in cash to leave Jones and will not. It is an incredible company.

Unless you are someone who knows a lot about investing there is NO SUCH THING as fee investing. If you think fee based brokers are going hungry you really have the wool pulled over your eyes! It is like every aspect of this world, there are good people working at every firm and there are bad ones.

Staceyfe - Sorry you have a bad impression of Edward Jones. Perhaps the broker is not cutting your commission for a particular reason? I know NOTHING about investing (and I mean about NOTHING) and I have no problems with the statements. Maybe your broker didn't do the educating they should have on reading the statements. It's worth mentioning to them, after all, it's your money! And of course they do make money on investing but they also make NOTHING on annual reviews, etc. My husband has spent HOURS with clients for absolutely free going over their needs, etc. Would you go do your job for free? I don't care what firm they work for, every broker is making money when you invest.

When it comes down to it, the poster should do what ever makes a difference in their lives and feels good. Whether it is DVC (sounds like a fun idea to me!), or investing or just stuffing it under their mattress! Life it too short!! Original poster, if you know someone personally who works for Jones, I would highly encourage you to call them, they can talk to you for free, and like I said can really show you lots of options! Good luck!

dzneprincess
07-06-2006, 09:09 PM
:rotfl: :wave2:

My dh does this and has been doing this for years. I am still very leery of him doing this (lol) and now has moved onto investing in stock, but he seems to know what he is doing and only does it with his "fun" investing money.

We have a CFP and we fit this in our plan. It's risky, though. It' s best to have all your hens in a row first, though, before doing something like this or buying something like DVC.

Does your DH check the price of gold every day as soon as he walks in the door too??!!?:rotfl:

DVC Sadie
07-06-2006, 09:12 PM
bhoffman, I am sorry if I hurt your feelings in regards to seeking out a fee or % based CFP that is independent of a brockerage house. I am not in any way demeaning you or your dh's job or company.

I am only going by the great advice of my parents who did know a lot about investing and by others in my family including my brother in law who retired from "American Funds". This strategy has worked very well for us and I was only giving my opinion.

I also agree with you that the original poster should do what they want but since they asked an opinion I just thought I would give mine as well. :teeth:

DVC Sadie
07-06-2006, 09:18 PM
Well actually, even if you have everything in place, DVC/WDW is still a luxury and a want. Just because you can afford something comfortably doesn't make it a need.


Well, you are absolutely correct! I stand corrected. :thumbsup2

mickeyfan2
07-07-2006, 06:18 AM
DVC Sadie - A CFP is NOT code for independent. My husband is a CFP and is employed by a large corporation. It has NOTHING to do with who you work for, so just seeking out a CFP is not going to accomplish what you claim it will. It is just an accredidation that you passed some tests.....

Edward Jones does not have any of their own mutual funds, as many other brokerage firms do. That is why DH loves this company so much. They don't "push" any particular product because it will do anything for them. Whoever claims that brokers only sell things that make them more money should meet my husband. He would not have made it this long with Jones if he did. Their fees are very fair and in fact, it depends on the broker but my husband often reduces his fees. He has been offered hundreds of thousands of dollars in cash to leave Jones and will not. It is an incredible company.

Unless you are someone who knows a lot about investing there is NO SUCH THING as fee investing. If you think fee based brokers are going hungry you really have the wool pulled over your eyes! It is like every aspect of this world, there are good people working at every firm and there are bad ones.
I agree with you. Our CFP works for a company and NEVER trys to sell us their products. In our entire portfolio we only hold one product of his company's product and I picked it after reading the entire perpectus and asking him other questions. He is extremely helpful and he did discount his fee for us. We moved with him when he left one company for another. He has never tried to miss lead us and keeps our investments within the guidelines that we set with him. Since DH and I were the first people in our families to be able to invest at an early age for retirement we need quidance.

There are some on this board (nobody who posted here) who think they are the only ones who have investment intelligence and the money to invest. Sorry to tell them that they are not the only ones. I would be thrilled if everybody on these boards were independently wealth even if I was not. Some even say we have done everything right. Nobody has ever done everything right. I know we have not, but we learned from our mistakes. That is how life is. We each have to individually decide what type of life today and at retirement that we want and make our financial decisions accordingly.

Gillian
07-07-2006, 06:42 AM
So what is the best way to go about finding a good, independent, fee-based CFP? We will need one early next year. Well, we could probably use one now.

We have friends who use someone at Edward Jones.

At the moment most of our money is in various Vanguard funds, including DH's 401k.

mickeyfan2
07-07-2006, 06:48 AM
So what is the best way to go about finding a good, independent, fee-based CFP? We will need one early next year. Well, we could probably use one now.

We have friends who use someone at Edward Jones.

At the moment most of our money is in various Vanguard funds, including DH's 401k.
I would start with your friend's CFP. Have him work up a plan (Vanguard will offer you a free service once you pass a certain amount in your account) and see what you have and what he recommends. They you can decide if he puts your needs first and go from there. Some CPA firms have financial arms. Ours does. When we went to our meeting with him he wanted us to sell everything and buy all new stuff. We never talked to him again.

Make sure that he takes into account your age now, how long until you retire, how much risk you are able to accept. See if he listens to you. Vanguard has many great accounts so don't just run away from them all.

disneysteve
07-07-2006, 07:03 AM
So what is the best way to go about finding a good, independent, fee-based CFP?
Read this recent article from Kiplinger's:
http://www.kiplinger.com/personalfinance/features/archives/2005/01/advisers.html

It walks you through the different kinds of professionals, what they do, how they are trained, how they get paid and, most importantly, how to find one and what questions to ask. There are some very useful links in the article.

Everybody's financial situation is a little different, so the planner that might be right for your friend might not be right for you (though he/she can certainly be one of the people you interview). Who you choose will depend on many factors, not just cost. You need to consider the size of your portfolio, what types of investments you prefer, if you just want advice or if you want to turn over funds for management, your age, your risk tolerance, and more.

Anyone who is looking for a planner now, or might in the future, should bookmark that article.

Chicago526
07-07-2006, 08:23 AM
Read this recent article from Kiplinger's:
http://www.kiplinger.com/personalfinance/features/archives/2005/01/advisers.html

It walks you through the different kinds of professionals, what they do, how they are trained, how they get paid and, most importantly, how to find one and what questions to ask. There are some very useful links in the article.

Everybody's financial situation is a little different, so the planner that might be right for your friend might not be right for you (though he/she can certainly be one of the people you interview). Who you choose will depend on many factors, not just cost. You need to consider the size of your portfolio, what types of investments you prefer, if you just want advice or if you want to turn over funds for management, your age, your risk tolerance, and more.

Anyone who is looking for a planner now, or might in the future, should bookmark that article.

Thanks Steve! :goodvibes

DH and I will need to speak to someone in the next two years or so. Right now we are working on debt pay down on the credit cards. Once that's done we'll be socking money away left and right and we'll need investment advice and retirement planing assistance (DH has a pension and we need to run a bunch of differant senario's, from it paying as promised to it going belly up and we get nadda, and everything in between!). Right now all our retirement money is in my 401k, and since I know very little about investing, I just put it all in the most aggressive Vangaurd fund offered.

Anyway, I book marked the article and will review it when I get a chance. Thanks again! :wave2:

dvcgirl
07-07-2006, 09:07 AM
I don't see any designated retirement savings listed (I don't know what's in that 3 times mortgage amount). If that is accurate, then that is where your 30K needs to go. You can each put in $4,000 into a ROTH ($5,000 if one of you is 50+). So $9,000 for 2006 and I'd set aside the remainder and put in another $9,000 in January 2007 and $11,000 in 2008 (when the limits increase). In between, park the money in a top-yielding CD (check bankrate.com for the best rates).

Yes, I know you have pensions but those are dropping left and right. There is a big article on the topic in this month's issue of Kiplingers. I wouldn't be counting on those pensions to fund your retirement because there is no way of knowing if they will still be in existence or if they will pay out the promised amounts. You've got enough years ahead of you to build up a decent nest egg just in case the pensions don't materialize.

The pension part of Steve's post is worth repeating. Pensions are dropping like flies, even the pensions that everyone thought were 110% safe aren't as safe as they used to be.....like state and teacher pensions. Since you have an emergency fund of 8K, I'd put that month towards retirement accounts. And I'd start increasing my savings in that department from here on out. Also agree with Steve...the Roth is a good deal...that's where I'd start.

disneysteve
07-07-2006, 09:44 AM
The pension part of Steve's post is worth repeating. Pensions are dropping like flies, even the pensions that everyone thought were 110% safe aren't as safe as they used to be.....like state and teacher pensions.
I didn't have the article in front of me when I posted earlier.

120 pension plans defaulted in 2005! And that number will likely continue to rise. The sad fact is that many, many companies have made promises that they just don't have the funds to keep.

mickeyfan2
07-07-2006, 09:57 AM
I didn't have the article in front of me when I posted earlier.

120 pension plans defaulted in 2005! And that number will likely continue to rise. The sad fact is that many, many companies have made promises that they just don't have the funds to keep.
It is not just companies but will soon include state pensions too. The Illinois teacher's pension was merged with the state fund (Got this from my Aunt who just retired from teaching in Il) and the teacher are furious. The state fund was underfunded.

NJ teacher's unions are putting on radio broadcasts about "saving" the pensions for them.

As more and more private companies reduce or eliminate pensions the taxpayers will be putting pressure on the states to alter their state pensions, since many will be underfunded too.

Marie17
07-07-2006, 10:01 AM
Don't know about pension funds really - but - can you not take out the money you put into that account and invest it somewhere else? I know my dad was able to do it with his when the company he used to work for started to slide down. It used to be mainly that company's stock but he did have the option every few months to take it out and put somewhere else - thankfully he did because he didn't lose very much. Now his money isn't tied to just one company and the solvency of it.

mickeyfan2
07-07-2006, 10:04 AM
Don't know about pension funds really - but - can you not take out the money you put into that account and invest it somewhere else? I know my dad was able to do it with his when the company he used to work for started to slide down. It used to be mainly that company's stock but he did have the option every few months to take it out and put somewhere else - thankfully he did because he didn't lose very much. Now his money isn't tied to just one company and the solvency of it.
Some companies will allow the taking of a lump sum wen you retire, but not all companies do.

Sarah'sMomfrom PA
07-07-2006, 10:32 AM
Where I work, we have a cash balance plan so when I retire or leave, I can either get a lump sum or roll it over into another plan. My DH had a defined benefit plan and the company went bankrupt and his pension fund at work was underfunded by 145 million. The pension went to the PBGC (who is also in the red to the to the tune of billions)--we were supposed to be getting close to $1950 a month and we are currently getting $798.00 so we got approximately half or less of the monthly amount and there is no guarantee of how long the PBGC will be in business to pay out. My DH worked 33 years at the company and was able to retire early when the company went bankrupt because we were afraid that the funds just wouldn't be there if we waited. Luckily, he had dumped alot of money into his 401(K) which we invested and it is doing quite well.

Disneyrsh
07-07-2006, 01:06 PM
Well actually, even if you have everything in place, DVC/WDW is still a luxury and a want. Just because you can afford something comfortably doesn't make it a need.


I disagree. I *need* to go to Disney. It makes me very happy! :teeth:

grlpwrd
07-07-2006, 01:27 PM
:rotfl:

Does your DH check the price of gold every day as soon as he walks in the door too??!!?:rotfl:

Yes! http://bestsmileys.com/lol/21.gif

Marie17
07-10-2006, 09:35 AM
For what it's worth .... J.D. Power just announced customer satisfaction ratings

Edward Jones came up on the top spot for customer satisfaction. AG Edwards was somewhere in the top 3.

Charles Schwabb and Fidelity were in the bottom 3.

They did say that when they did this survey they thought the most important thing they would find regarding satisfaction was "show me the money" factor; i.e. fees, charges, etc. But it wasn't - it was about having an individual to work with that knew your strategy and goals. They also mentioned that individuals who are satisfied with their investor also put up to 12% more than others ... so in the long run you make more.

We don't invest with Edward Jones - just have a friend from another state who works for them. We've always told him we would like to see what he can do and will most probably start investing with him after the next raise.

SlightlyGoofy
07-10-2006, 04:53 PM
chalex, here is another POV, for whatever it is worth.

Do you have any debt, especially high interest rate debt such as credit cards? If so, you might consider paying off at least some of it. I doubt that you could get investment results as high as the amount you would save by paying off such debt.

I am tight with a nickel but even I would suggest that you spend a small portion of your windfall on something fun, like something DW related. :sunny:

Slightly Goofy (who is totally debtfree and high recommends it)