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What are the options to help me manage my finances?
Brokerage Firms
One needs a brokerage account in order to deal with individual securities like stocks and bonds.
Services offered:
- Check-writing advantages
- Investment advice
- Investment information and tools
- Margin loans
- Online trading
- Real-time quotes
- Research
- Touch-tone trading
- Web site account access
Products: Complete selection of traded securities and mutual funds
Payment: Some of the advisors can charge an advisory fee along with receiving a commission from the companies whose investments they recommend.
Mutual Fund Companies
Mutual fund companies not only stick to selling mutual funds, they also offer plenty of value-added information, tools and research which can help make mutual fund investing easier than ever.
Mutual funds make money from one or more of the following:
- Annual administrative fees
- Early surrender charges
- Transfer fees
Most of the mutual fund families offer an array of choices for one-stop shopping with combined account statements, quarterly reports, annual reports, and ongoing investor relations newsletters and informational materials.
Banks
Banks have made a lot of progress nowadays in their drive to offer securities products within bank branches.
Products: Complete assortment of traded securities and mutual funds
Payment: Generally commission-based but bank-affiliated brokerages give their representatives a flat salary that has no bearing on their sales production so as not to affect investment recommendations.
Insurance Companies
Insurance companies are the only providers who are permitted to issue investment products that offer insurance guarantees.
Services offered:
- Portfolio manager interviews
- Individual portfolio profiles
- Investment information and tools
- Website account access
Products: Immediate and deferred annuities along with different types of investment-oriented insurance products.
Payment:
- Front and back-end sales commissions
- Early withdrawal penalties
- Mortality and expense fees
- Annual administrative fees
- Investment fees on cash value accounts
Online Investing
Online investing helps an experienced investor to manage his portfolio in a convenient and inexpensive way.
Products: Complete selection of traded securities and mutual funds
Payment: The lowest trading fees available
Benefits: The Internet allows one to research his way of investments with more ease and thoroughness.
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