AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner practitioner and have performed fee only investment management and financial planning services for the past 11 years.
I need assistance in figuring out who to invest my mutual fund with. I have the Franklyn Templeton Founding Fathers Mutual Fund (FFALX, I believe) and I am investing it through Chase Bank.
I’m worried they’re screwing me, essentially. They took 5% of the total amount I was investing right off the bat, in return for the fact that they won’t take anything when I decide to sell it. Also, they are taking 5% of every additional dollar I put in, including the dividends I’m having automatically reinvested.
I’m really a beginner at investing. I inherited the money from my grandmother, and since I’m only 20 I’m planning on keeping it invested for a LONG time, hopefully until my children are ready for college themselves. (Judging by the fact that I’m not even dating anyone, I’m estimating that the kids going to college is between 25 and 30 years away.)
Lastly, chase requires that I make “a trade,” annually, or they are going to take a $50 maintenance fee.
I’ve heard of TD Ameritrade, E-Trade, Charles Schwab and Fidelity on TV but don’t have the slightest idea as to which one is better than which.
Which service would you recommend using for a long term investment? Is Chase taking more from me than what another service would be or are they about par with the others?
Thank you for your help!
~Dave
Answer I would agree that the 5% they are charging is uncessary. There are alot of no load mutual funds available where these charges do not apply. TD Ameritrade, Schwab, Etrade, etc, are all fine alternative. Each platform has a big selection of no load mutual funds, many of which do not impose transaction charges for buying and selling (this charge...around $20, is often times imposed as a way for the custodian to help cover thier costs. Although, this charge does not apply to reinvestment of dividends). Before making a final decision, I would visit www.vanguard.com. Enter the personal investors portion and go to the planning and education tab. There is good information here on mutual fund investing. Actually, you may find that Vanguard is a good place to invest because of their low cost no load mutual funds. I hope this helps.
