joetaxpayer wrote:
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You are right they don't make any money from this account. It's a lose
leader for them. Bottomline is there arent' that many accounts like
that. So don't cry for them joetaxpayer. They make enough money as is.

Avrum Lapin wrote:
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I understand the money the brokerage houses make from fund expenses. I
don't know where their profit is to be made from a stock-only portfolio
in a non-margin account with no further trading activity.

Mark Bole wrote:
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I have accounts with both companies and I know both companies will do a
financial check up for you. In fact you can do a portfolio check on
both companies' web sites. Both will also offer fee based management
service, probably to the tune of 1% of your portfolio value (or lower,
depending on the size of your portfolio).


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to you. There may be bennies which kick in with large amounts of money
(these bennies may be of no value to you)

To Joe Taxpayer. The Schwabs and Fidelities get money from the
non-propriety firms like Janus for carrying their funds. In some cases
(Janus) these costs are included in the expense ratio, others like
Neuberger and Berman set up a separate fund (the N&B Trust funds) which
carry a slightly higher expense ratio (about 0.1%)

Mark Bole wrote:

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Schwab and Fidelity both offer commission schedules on line so you can
see what rates you'd get with the balances you'd offer them.
If you are not planning to trade much, that may not be a benefit to you.
In general, they will offer a review of your portfolio and suggest how
to rebalance with a tilt toward their own funds. I'd have to wonder, if
one has a million dollars of stock, and no trading at all, what value
that brings the broker? I understand they make margin money lending you
shares, but retirement accounts cannot be margined, so it seems to me
that $10,000, or $10 million, how does the broker benefit?
I believe that for a relatively low (25k?) balance, you'd have no annual
fee. I'd prepare some simple questions, from here, and play dumb, then
evaluate their answer. Don't be shocked that the people you sit with
know less than you, that points more toward your knowledge than their
ignorance.
JOE

Recent thread that wandered into discussion of how to get best price on
a new auto prompts me to ask the following:

Let's say I've got all my defined-contribution retirement money
(individual, not employer or government) stashed in IRA's at two firms,
for example Schwab and Fidelity. Dollar amounts currently in low six
figures at both firms, invested in a handful of stock and bond funds at
each, no active trading. Let's further say I have a long-term (more than
five years) horizon before contemplating any withdrawals, have
potentially some additional chunks of cash to invest (useful as bait to
dangle!), and am geographically blessed by bricks-and-mortar offices for
both firms located within easy traveling distance.

If I request a "check-up" appointment with each firm at their local
office, what should I be asking each firm about costs and services? I
have no idea if I'm getting full value from each firm. Should I be
looking for an assigned personal advisor? How to determine annual fees?
Possible benefits of consolidating everything at one firm (not
something I am naturally inclined to do)? Whether my investment
allocation choices are comparable at both firms (I tend to think they
are)? How the bricks-and-mortar office can benefit me compared to an
on-line-only firm such as E-Trade?

-Mark Bole