Comments on: Reader Mail: How Do I Reduce Investment Fees? http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm Building Wealth through Saving and Investing Sat, 21 Nov 2009 03:00:37 -0500 http://wordpress.org/?v=abc hourly 1 By: Best Stocks To Invest In http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35850 Best Stocks To Invest In Fri, 16 May 2008 09:00:58 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35850 Hi, The tips given to reduce the investment cost will really help the small investors. They will be investing less amount and the fee that they has to pay will be high. Thank you for the information. Hi,
The tips given to reduce the investment cost will really help the small investors. They will be investing less amount and the fee that they has to pay will be high. Thank you for the information.

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35770 Dividend Growth Investor Thu, 15 May 2008 15:44:59 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35770 You can also save on investment fees if you use drips or SPP You can also save on investment fees if you use drips or SPP

]]> By: Al http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35749 Al Thu, 15 May 2008 12:37:55 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35749 It was financial planners that got people into ABCP. I'd rather do it myself than take that kind of risk. It was financial planners that got people into ABCP. I’d rather do it myself than take that kind of risk.

]]> By: Good Stock To Invest In http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35728 Good Stock To Invest In Thu, 15 May 2008 09:07:29 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35728 Hi, For our successful growth in investment business we need some experts and to invest on any stock we have to pay some amount as process fee. This might be a big amount. By following these tips we can surly reduce in our investment fees. thank you for the information. Hi,
For our successful growth in investment business we need some experts and to invest on any stock we have to pay some amount as process fee. This might be a big amount. By following these tips we can surly reduce in our investment fees. thank you for the information.

]]> By: The Financial Blogger http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35699 The Financial Blogger Thu, 15 May 2008 01:18:18 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35699 You might think that I am preaching for my own kind but dealing with a real financial planner will give you much more than only good trades. He should be able to make a financial plan so you can achieve your goal without much effort This is priceless. Don't try to cut down on the fees but try to get the best out of what you pay for! Remember that: If you cut down on the fees, you will never be able to buy a Bmer... You might think that I am preaching for my own kind but dealing with a real financial planner will give you much more than only good trades. He should be able to make a financial plan so you can achieve your goal without much effort

This is priceless. Don’t try to cut down on the fees but try to get the best out of what you pay for!

Remember that: If you cut down on the fees, you will never be able to buy a Bmer…

]]> By: Personal Money Tips Blogger http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35659 Personal Money Tips Blogger Wed, 14 May 2008 15:24:45 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35659 If you know what you are looking for, know when to sell, and have the time and interest in following your investments, then investing through a discount brokerage makes sense. The trade off you make is your time versus the money you spend on an advisor: The less you spend on your advisor means the more you spend on it yourself. You are paying your advisor to watch your portfolio, make recommendation, and provide help and advice. You pay a premium for the service and if you are not getting service, get another broker. If you know what you are looking for, know when to sell, and have the time and interest in following your investments, then investing through a discount brokerage makes sense. The trade off you make is your time versus the money you spend on an advisor: The less you spend on your advisor means the more you spend on it yourself.

You are paying your advisor to watch your portfolio, make recommendation, and provide help and advice. You pay a premium for the service and if you are not getting service, get another broker.

]]> By: Digger http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35656 Digger Wed, 14 May 2008 14:47:36 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35656 Another way to cut down on the fees is to enroll in a company's DRIP plan. If the plan also has an OCP (Occasional Payment Plan) you can buy more stock without incurring any fees. This type of stock purchase would be good for solid dividend companies that you plan to hold for a long time. Benefits: No fees to invest in a good stock. Dividends automatically reinvested. Ability to hold part shares. Disadvantages: A bit of a hassle to set up initially. Shares are purchased at specific times so there is less control over price. Selling shares takes longer. I wouldn't suggest this for all stocks but if you had a small amount of money each month that you wanted to invest in value stocks this could be a good way to go. For more information: See "Dividend Achievers List" article on Million Dollar Journey. Derek Foster's book "The Lazy Investor" Canadian Drip website - http://dripinvesting.org/ Another way to cut down on the fees is to enroll in a company’s DRIP plan. If the plan also has an OCP (Occasional Payment Plan) you can buy more stock without incurring any fees. This type of stock purchase would be good for solid dividend companies that you plan to hold for a long time.

Benefits:
No fees to invest in a good stock.
Dividends automatically reinvested.
Ability to hold part shares.

Disadvantages:
A bit of a hassle to set up initially.
Shares are purchased at specific times so there is less control over price.
Selling shares takes longer.

I wouldn’t suggest this for all stocks but if you had a small amount of money each month that you wanted to invest in value stocks this could be a good way to go.

For more information:
See “Dividend Achievers List” article on Million Dollar Journey.
Derek Foster’s book “The Lazy Investor”
Canadian Drip website – http://dripinvesting.org/

]]> By: WhereDoesAllMyMoneyGo.com http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35655 WhereDoesAllMyMoneyGo.com Wed, 14 May 2008 14:42:32 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35655 Thanks for the link! All the big 5 banks' have full service brokers: BMO Nesbit Burns, RBC Dominion Services, CIBC Wood Gundy, ScotiaMcLeod, TD Waterhouse Private Investment Advice. All 5 have the ability to use the traditional transactional approach, fee-based (where a percentage of assets is used, but usually doesn't get down to 1% until you are at $1,000,000 or more), and very few full service bank advisors offer fee-only but I believe they all have the option (this can be hourly or a flat fee of $x,xxx for a financial plan, an IPS or both). Having said that, off the top of my head there are some ways to reduce fees: If you are going to use mutual funds in a non-registered account, you can use a f-class version of the fund with a fee based advisor. While the cost may be the same, the trailer to the advisor may be tax-deductible. You can negotiate your commissions with your transactional advisor if you do choose to use one. You can write put options on stocks you want to buy (you receive the contract premium which may fully offset the commissions you pay to buy the stock if the stock gets put to you). Maybe a good topic for a guest post on MDJ? :) There are some drawbacks to this method (such as the stock falling much below the strike price, or never getting to the strike price and increasing before you can buy it). You can write call options on stock that you already own instead of using limit sell orders. Again you collect the contract premium while you wait for your stock to hit the price you have determined that you want to sell at. Again, the risk here is that incredible news develops which sends the stock into orbit forever, and you may have preferred to keep the stock if you had known this. With the call option contract out there you are obligated to have your stock called away. Just some thoughts shooting from the hip. Thanks for the link!

All the big 5 banks’ have full service brokers: BMO Nesbit Burns, RBC Dominion Services, CIBC Wood Gundy, ScotiaMcLeod, TD Waterhouse Private Investment Advice. All 5 have the ability to use the traditional transactional approach, fee-based (where a percentage of assets is used, but usually doesn’t get down to 1% until you are at $1,000,000 or more), and very few full service bank advisors offer fee-only but I believe they all have the option (this can be hourly or a flat fee of $x,xxx for a financial plan, an IPS or both).

Having said that, off the top of my head there are some ways to reduce fees:

If you are going to use mutual funds in a non-registered account, you can use a f-class version of the fund with a fee based advisor. While the cost may be the same, the trailer to the advisor may be tax-deductible.

You can negotiate your commissions with your transactional advisor if you do choose to use one.

You can write put options on stocks you want to buy (you receive the contract premium which may fully offset the commissions you pay to buy the stock if the stock gets put to you). Maybe a good topic for a guest post on MDJ? :) There are some drawbacks to this method (such as the stock falling much below the strike price, or never getting to the strike price and increasing before you can buy it).

You can write call options on stock that you already own instead of using limit sell orders. Again you collect the contract premium while you wait for your stock to hit the price you have determined that you want to sell at. Again, the risk here is that incredible news develops which sends the stock into orbit forever, and you may have preferred to keep the stock if you had known this. With the call option contract out there you are obligated to have your stock called away.

Just some thoughts shooting from the hip.

]]> By: Robert Hof http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm/comment-page-1#comment-35650 Robert Hof Wed, 14 May 2008 13:25:36 +0000 http://www.milliondollarjourney.com/reader-mail-how-do-i-reduce-investment-fees.htm#comment-35650 I'll bet the readers of PF blogs such as MDJ are much more active planners of their financial future, and as such, have a higher than average understanding of (or at least interest in) their financial well-being. I count myself in this category. I've been an entrepreneur for most of my working life, working hard for that early retirement. That being said, I wish I had met my financial advisor 10 years ago. Sure I've had RRSPs, I've had an Investorline account. But I've come to learn that picking stocks is not the core function of a good advisor. Defining the goal, and creating and implementing the plan - these are at least as important as picking stocks. This is where a good advisor is worth every penny they make and more. They say a little knowledge is dangerous. I'm not about to entrust my future to some yahoo who gets all his information from PF blogs and Chapters. You know who that yahoo is? Me. Ladies, Gentlemen, get a good independent CFP-certified advisor. Get references! Learn that you have much to learn, and don't let your ego get in the way. I’ll bet the readers of PF blogs such as MDJ are much more active planners of their financial future, and as such, have a higher than average understanding of (or at least interest in) their financial well-being. I count myself in this category. I’ve been an entrepreneur for most of my working life, working hard for that early retirement.

That being said, I wish I had met my financial advisor 10 years ago. Sure I’ve had RRSPs, I’ve had an Investorline account. But I’ve come to learn that picking stocks is not the core function of a good advisor. Defining the goal, and creating and implementing the plan – these are at least as important as picking stocks. This is where a good advisor is worth every penny they make and more.

They say a little knowledge is dangerous. I’m not about to entrust my future to some yahoo who gets all his information from PF blogs and Chapters. You know who that yahoo is? Me.

Ladies, Gentlemen, get a good independent CFP-certified advisor. Get references! Learn that you have much to learn, and don’t let your ego get in the way.

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