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LSUTigers00884 
LA-Lafayette Fan
Lafayette
Member since Oct 2011
619 posts
| How much should I pay a fund manager? (Posted on 1/22/13 at 11:49 pm)
Talking to a fund manager at my bank (Iberia). How much should I expect to pay him for managing my mutual funds?
Should I pay him to open an IRA account? What about should I pay him for opening Bonds, etc.?
I am meeting with one soon and am new to investing. I want to start young. Thanks.
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Vols&Shaft83 
Tennessee Fan
Member since Dec 2012
3281 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 8:02 am to LSUTigers00884)
Congrats on beginning your investing career young, wish I had started ten years earlier. Be very careful with bank financial managers, a lot of times you're just talking to a salesman, not an investing professional who will teach you. Always better to meet with a couple of investing professionals before buying anything, find one you are comfortable with that has the heart of a teacher. As far as your questions go?
quote:
How much should I expect to pay him for managing my mutual funds?
Unless he's a Fee Only Adviser, Nothing, he's not managing any funds. You may pay a front end sales charge or "front load" when purchase shares, or when you sell shares "back load". But other than that, you don't pay him anything.
quote:
Should I pay him to open an IRA account?
No, as long as you have the minimum initial investment, this shouldn't cost you anything or maybe a small service fee.
quote:
What about should I pay him for opening Bonds, etc.?
Have no idea how to "open a bond" lol. You pay a broker fee when buying stocks, bonds, etc. Have no idea what your bank charges for this. I'd not recommend single bond or single stock purchase for beginning investors. Get your feet wet with index/ mutual funds and ETF's first before jumping into the shark tank.
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Broke 
LSU Fan
AKA Buttercup
Member since Sep 2006
49475 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 10:06 am to LSUTigers00884)
quote:
Talking to a fund manager at my bank
You aren't talking to a fund manager. You are talking to a financial consultant, investment rep, etc. I don't find bank FA's to be very good at what they do.
You will pay a yearly IRA fee of around $75. You will pay a commission on the bonds and probably a front end load on the mutual funds.
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LSUTigers00884
LA-Lafayette Fan
Lafayette
Member since Oct 2011
619 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 12:27 pm to Broke)
Thanks guys. Any other thoughts?
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bbuisson
LSU Fan
Memphis
Member since Jul 2010
35 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 1:02 pm to Broke)
Oh yeah, independent(s) are the most astute advisors out there. 
Once again, depends on the advisor and the firm. They have good and bad everywhere. Definitely go with someone or institution that is reputable.
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
49475 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 1:36 pm to bbuisson)
quote:
Oh yeah, independent(s) are the most astute advisors out there.
It's my opinion. Nor do they stick around long.
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Janky
LSU Fan
Team Primo
Member since Jun 2011
2523 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 1:47 pm to Broke)
quote:
Nor do they stick around long.
They normally move on to an independent where their payout is better.
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foshizzle
LSU Fan
Member since Mar 2008
25135 posts
| re: How much should I pay a fund manager? (Posted on 1/23/13 at 9:06 pm to Janky)
quote:
They normally move on to an independent where their payout is better and they don't have to shill their employer's products.
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LSU9102
TBD Fan
West of the Mississippi
Member since Mar 2007
1518 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 9:39 am to foshizzle)
Broke,
Are you an independent?
How hard is it to make transition?
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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
3281 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 9:45 am to LSU9102)
quote:
How hard is it to make transition?
With those boobs? It's very hard
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
49475 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 10:14 am to LSU9102)
quote:
How hard is it to make transition?
Not as hard as your existing B/D makes you think it is. You'll lose some clients but I kept about 90%
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LSU9102
TBD Fan
West of the Mississippi
Member since Mar 2007
1518 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 10:15 am to Vols&Shaft83)
Trudat! Anybody make transition from captive to independent?
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
49475 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 10:42 am to LSU9102)
quote:
Anybody make transition from captive
What do you mean by captive?
I went from a large B/D to indy.
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LSU9102
TBD Fan
West of the Mississippi
Member since Mar 2007
1518 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 10:49 am to Broke)
Captive is when you don't own the book your company does.
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
49475 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 11:11 am to LSU9102)
quote:
Captive is when you don't own the book your company does.
Ok, well I did that then. But that fricking book was mine. Nobody worked for that book but me. So I took it with me. And was promptly sued. 
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Fat Bastard 
New Orleans Saints Fan
Paradise
Member since Mar 2009
13493 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 11:15 am to LSUTigers00884)
ZERO
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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
13493 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 11:18 am to Broke)
quote:
You will pay a yearly IRA fee of around $75.
which is ridiculous and why he needs to open a ROTH IRA with vanguard.
quote:
You will pay a commission on the bonds and probably a front end load on the mutual funds.
yep, yet another reason why not do to this.
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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
3281 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 11:30 am to Fat Bastard)
quote:
which is ridiculous and why he needs to open a ROTH IRA with vanguard.
Listen to this Fat Bastard, he's very wise.
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
49475 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 11:48 am to Fat Bastard)
quote:
yep, yet another reason why not do to this.
I own a black and decker drill. Gonna do my own dental work from now on too. I watch Judge Judy, gonna do my own litigation.
Moron.
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Janky
LSU Fan
Team Primo
Member since Jun 2011
2523 posts
| re: How much should I pay a fund manager? (Posted on 1/24/13 at 11:55 am to Broke)
quote:
I own a black and decker drill
Porter-cable is the way to go. It is cheaper and has performed better. It only has two attachments, but that doesn't matter. Over time it will work itself out.
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