Comments on: Reviewing My IRA Options http://www.lazymanandmoney.com/reviewing-my-ira-options/ Saving, Earning, and Investing Money Sat, 21 Nov 2009 00:22:17 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Gold IRA http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-136813 Gold IRA Fri, 15 May 2009 06:21:23 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-136813 I agree with protecting your savings and, like the rest of you, have no confidence in our Government’s interest in our well being. That said, Danial Murial, you overestimate the protection that our laws actually offer you. The Government can and will confiscate anything it feels like taking. The idea that certain Types of gold, such as old american coins, are not confiscatable is not supported by law, but instead is a bit of urban legend that’s developed from the fact that FDR simply chose that direction back when he confiscated our gold. He could have, but simply didn’t. It set a precedent that everyone on the internet refers to, but be aware, the law does not prohibit the confiscation of your “coin collection”. I agree with protecting your savings and, like the rest of you, have no confidence in our Government’s interest in our well being. That said, Danial Murial, you overestimate the protection that our laws actually offer you. The Government can and will confiscate anything it feels like taking. The idea that certain Types of gold, such as old american coins, are not confiscatable is not supported by law, but instead is a bit of urban legend that’s developed from the fact that FDR simply chose that direction back when he confiscated our gold. He could have, but simply didn’t. It set a precedent that everyone on the internet refers to, but be aware, the law does not prohibit the confiscation of your “coin collection”.

]]> By: Bill Foss http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-76557 Bill Foss Fri, 14 Mar 2008 22:40:32 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-76557 Why do I get a weird feeling about Zecco? Because I read this? http://rumennik.wordpress.com/2007/01/17/stay-away-fr om-zeccocom/#comment-2029 15 Trader Guy on October 10, 2007 said: I too had to send in paperwork. Has anyone NOT had to? I don’t understand why no other online account has ever had a problem verifying my identity, but Zecco has, multiple times. Sounds like the French commenter above had no problems. Beat that! Supplying my info online was not good enough so they mailed me the paperwork AND asked me to send in a copy of my driver’s license. Did that. Trying to hook it up to my 10 year old bank account, which is clearly mine and clearly based on a verified identity and that’s not good enough either. They then ask me to send them a copy of my social security card. Whaaa? Nobody has ever asked to see that thing. It’s been in a box so long I’m not even sure where I put it. That sounds really really odd and makes me uncomfortable for some reason. I’m going to do it but I’ve been on the fence about it. Wonder how many legit people that scares off? Plus you’d think that it’d be pretty easy to just scan and photoshop yourself a fake SS card these days if you really wanted to commit fraud, so it would seem that a scratchy faxed copy of a card wouldn’t be much more verification than just giving the number. If they have such problems with customer service capacity, maybe it’s because they make so much more work for themselves and their customers than other vendors. They’ve got to be drowning in scattered paper. I guess free trades means you should logically expect put up with inconveniences you wouldn’t get with other vendors, but these barriers to entry seem like a lose-lose situation. I know they want to prevent fraud and keep security tight, but jeez! I wanted to get in before the Fed rate cut and foolishly thought I could do it in a week or so, but it’s been weeks and weeks of baloney now, opportunity long gone. Sharebuilder was a breeze to set up, on the other hand. As an infrequent trader I’m tempted to just stay there and eat the fees and deal with the weekly purchasing limitation. 16 The IT Guy on October 16, 2007 said: I’m having the exact same issue with these guys. I don’t think I’ll ever get my money back. Why do I get a weird feeling about Zecco? Because I read this?

http://rumennik.wordpress.com/2007/01/17/stay-away-fr
om-zeccocom/#comment-2029

15 Trader Guy on October 10, 2007 said:
I too had to send in paperwork. Has anyone NOT had

to? I don’t understand why no other online account has

ever had a problem verifying my identity, but Zecco has,

multiple times. Sounds like the French commenter

above had no problems. Beat that! Supplying my info

online was not good enough so they mailed me the

paperwork AND asked me to send in a copy of my

driver’s license. Did that. Trying to hook it up to my 10

year old bank account, which is clearly mine and clearly

based on a verified identity and that’s not good enough

either.

They then ask me to send them a copy of my social

security card. Whaaa? Nobody has ever asked to see

that thing. It’s been in a box so long I’m not even sure

where I put it. That sounds really really odd and makes

me uncomfortable for some reason. I’m going to do it

but I’ve been on the fence about it. Wonder how many

legit people that scares off? Plus you’d think that it’d be

pretty easy to just scan and photoshop yourself a fake

SS card these days if you really wanted to commit fraud,

so it would seem that a scratchy faxed copy of a card

wouldn’t be much more verification than just giving the

number.

If they have such problems with customer service

capacity, maybe it’s because they make so much more

work for themselves and their customers than other

vendors. They’ve got to be drowning in scattered paper.

I guess free trades means you should logically expect

put up with inconveniences you wouldn’t get with other

vendors, but these barriers to entry seem like a

lose-lose situation. I know they want to prevent fraud and

keep security tight, but jeez! I wanted to get in before

the Fed rate cut and foolishly thought I could do it in a

week or so, but it’s been weeks and weeks of baloney

now, opportunity long gone. Sharebuilder was a breeze

to set up, on the other hand. As an infrequent trader I’m

tempted to just stay there and eat the fees and deal with

the weekly purchasing limitation.

16 The IT Guy on October 16, 2007 said:
I’m having the exact same issue with these guys. I don’t

think I’ll ever get my money back.

]]> By: Lazy Man http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-57302 Lazy Man Mon, 11 Feb 2008 00:39:08 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-57302 Sweet, I'll have to look into that. Seems even better as long as it's not a part time promotion. Zecco's put it's whole business on the zero commissions. Sweet, I’ll have to look into that. Seems even better as long as it’s not a part time promotion. Zecco’s put it’s whole business on the zero commissions.

]]> By: MossySF http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-57109 MossySF Sun, 10 Feb 2008 20:49:02 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-57109 $0 commissions also available at Wells Fargo for combined balances (investments + banking) over 25K. I have IRA, Roth IRA and a taxable brokerage account with them so I get 100 free trades per account (300 total). Not a big deal saving $60 a year at Zecco ($30 for an IRA, $30 for a Roth IRA) but it's still better than paying the fee. $0 commissions also available at Wells Fargo for combined balances (investments + banking) over 25K. I have IRA, Roth IRA and a taxable brokerage account with them so I get 100 free trades per account (300 total). Not a big deal saving $60 a year at Zecco ($30 for an IRA, $30 for a Roth IRA) but it’s still better than paying the fee.

]]> By: Wylie http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-57008 Wylie Sun, 10 Feb 2008 18:33:21 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-57008 I found that since you can only contribute $4-5000 per year that I only invest in one or two securities in my IRA each year. So the small fee for the transactions is not a major factor for my IRA. You are right to point out that that decision boils down to how you handle your IRA investments. What I have found most surprising, as I have been tracking ETFs against Vanguard index funds and managed no-load funds, is how poorly the ETFs have performed over the last year. You can see the details as I track comparable portfolios each week on my blog: http://wyliemoney.blogspot.com/ I personally own ETFs, Index funds, and Managed funds and am a fan of all three, depending on what sector or category I am investing in and the very important point you mention- re-investing in small amounts is not practical if you have to pay a commission. I am sticking with the ETFs I own, but I am really surprised that the diversified portfolio of ETFs I track has been spanked by the comparable portfolio of mostly managed mutual funds that invests in the same categories, since last May. The Vanguard portfolios have beaten the ETFs as well. I found that since you can only contribute $4-5000 per year that I only invest in one or two securities in my IRA each year. So the small fee for the transactions is not a major factor for my IRA. You are right to point out that that decision boils down to how you handle your IRA investments.

What I have found most surprising, as I have been tracking ETFs against Vanguard index funds and managed no-load funds, is how poorly the ETFs have performed over the last year.

You can see the details as I track comparable portfolios each week on my blog:

http://wyliemoney.blogspot.com/

I personally own ETFs, Index funds, and Managed funds and am a fan of all three, depending on what sector or category I am investing in and the very important point you mention- re-investing in small amounts is not practical if you have to pay a commission.

I am sticking with the ETFs I own, but I am really surprised that the diversified portfolio of ETFs I track has been spanked by the comparable portfolio of mostly managed mutual funds that invests in the same categories, since last May. The Vanguard portfolios have beaten the ETFs as well.

]]> By: Tony Leach http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55685 Tony Leach Sat, 09 Feb 2008 06:44:22 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55685 Lazy Man - Glad you landed at Zecco for an IRA. You're absolutely right - having complete flexibility (with the $0 commissions) is incredibly valuable for most investors, especially with incremental contributions to retirement accounts. What I think you're overlooking is the Zecco community that helps people make better investing decisions. You might be interested in one of our retirement investing discussion groups? http://www.zecco.com/zeccoshare/groups/Group.aspx?groupid=104 - Tony Leach (Zecco Product Manager) Lazy Man –

Glad you landed at Zecco for an IRA. You’re absolutely right – having complete flexibility (with the $0 commissions) is incredibly valuable for most investors, especially with incremental contributions to retirement accounts. What I think you’re overlooking is the Zecco community that helps people make better investing decisions. You might be interested in one of our retirement investing discussion groups? http://www.zecco.com/zeccoshare/groups/Group.aspx?groupid=104

- Tony Leach (Zecco Product Manager)

]]> By: Chicky http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55568 Chicky Sat, 09 Feb 2008 02:54:42 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55568 Lazy man- thank you for commenting on my blog. I totally agree with you when it comes to keeping relationships healthy and not burning bridges. as you say you never knooow.. chickyfinance.blogspot.com/ Lazy man-
thank you for commenting on my blog. I totally agree with you when it comes to keeping relationships healthy and not burning bridges. as you say you never knooow..
chickyfinance.blogspot.com/

]]> By: Enough Wealth http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55563 Enough Wealth Sat, 09 Feb 2008 02:42:13 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55563 At least ETFs and Vanguard HAVE low fees in the US. Here in Australia the cheapest ETFs still have fees totalling around 0.5%pa and Vanguard's retail funds charge 0.75% on low balances, and only drop to 0.25% for that part of an investment in a fund that is above $100,000! (Vanguards wholesale index funds have lower fees, but you have to invest via a "wrap" service which will be charging there own set of fees). Still, it's better than the retail mutual funds in Australia, which charge a whopping 1%-2.5% or more pa.... At least ETFs and Vanguard HAVE low fees in the US. Here in Australia the cheapest ETFs still have fees totalling around 0.5%pa and Vanguard’s retail funds charge 0.75% on low balances, and only drop to 0.25% for that part of an investment in a fund that is above $100,000! (Vanguards wholesale index funds have lower fees, but you have to invest via a “wrap” service which will be charging there own set of fees). Still, it’s better than the retail mutual funds in Australia, which charge a whopping 1%-2.5% or more pa….

]]> By: Lazy Man http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55444 Lazy Man Fri, 08 Feb 2008 23:00:31 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55444 Yes Zecco has $0 trades. Scottrade may be better for you depending on how much you trade. With Zecco, I could actually buy one or two shares of a pile of companies. So if I think the XLK doesn't have enough Microsoft in it (it really has plenty of of MSFT for me), I could buy some XLK and some MSFT. If I see MSFT go up and XLK go down, I could take some off from MSFT and buy more XLK. That gets a little close to trading you still have to worry about the spread between the bid/ask prices. Yes Zecco has $0 trades. Scottrade may be better for you depending on how much you trade.

With Zecco, I could actually buy one or two shares of a pile of companies. So if I think the XLK doesn’t have enough Microsoft in it (it really has plenty of of MSFT for me), I could buy some XLK and some MSFT. If I see MSFT go up and XLK go down, I could take some off from MSFT and buy more XLK. That gets a little close to trading you still have to worry about the spread between the bid/ask prices.

]]> By: Early Retirement Extreme http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55425 Early Retirement Extreme Fri, 08 Feb 2008 22:27:47 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55425 Scottrade (what I use) has zero fee IRAs, but you still have to pay $7 flat for the trades which as far as I understand is not the case for Zecco? And of course leaving the fund racket altogether means 0.00% annual fees ;-) Of course that leaves the administration to the individual. However, since the SP500 is a cap weighed index, it's largely made up of the biggest, say, 25 companies, so you can get pretty close in terms of tracking error. Just start buying them one at a time starting with the biggest (Exxon Mobile). Obviously diversifying on your own requires some serious money unless someone knows where to get a zero fee account with free trades. That would be sweet!! @ Mrs. Micah - actually I prefer to have my investments spread out over more than one broker, just in case. Scottrade (what I use) has zero fee IRAs, but you still have to pay $7 flat for the trades which as far as I understand is not the case for Zecco?

And of course leaving the fund racket altogether means 0.00% annual fees ;-)

Of course that leaves the administration to the individual.

However, since the SP500 is a cap weighed index, it’s largely made up of the biggest, say, 25 companies, so you can get pretty close in terms of tracking error. Just start buying them one at a time starting with the biggest (Exxon Mobile).

Obviously diversifying on your own requires some serious money unless someone knows where to get a zero fee account with free trades. That would be sweet!!

@ Mrs. Micah – actually I prefer to have my investments spread out over more than one broker, just in case.

]]> By: Mrs. Micah http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55359 Mrs. Micah Fri, 08 Feb 2008 21:02:39 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55359 Well, that's what it's all about...wanting to be able to pick your investments all in one place for as little as possible. I'm not really into oil/gold investing, so Vanguard seems to have everything I'd want. But it's not for everyone. Of course, you could have two IRAs...but that would be a headache. Well, that’s what it’s all about…wanting to be able to pick your investments all in one place for as little as possible. I’m not really into oil/gold investing, so Vanguard seems to have everything I’d want. But it’s not for everyone.

Of course, you could have two IRAs…but that would be a headache.

]]> By: Jesse http://www.lazymanandmoney.com/reviewing-my-ira-options/comment-page-1/#comment-55325 Jesse Fri, 08 Feb 2008 20:18:05 +0000 http://www.lazymanandmoney.com/reviewing-my-ira-options/#comment-55325 Man you are right, Zecco IS a pretty good deal, I'd never heard of it before now. Makes sharebuilder look pretty bad... Man you are right, Zecco IS a pretty good deal, I’d never heard of it before now. Makes sharebuilder look pretty bad…

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