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I find Fidelity or Vanguard to be "perfectly reasonable" discount brokers to manage, say, retirement funds. For those outside of where they operate, such as Ca
by jleyank 5y ago
I find Fidelity or Vanguard to be "perfectly reasonable" discount brokers to manage, say, retirement funds. For those outside of where they operate, such as Canada, there are smaller discount brokers such as TD Waterhouse here in Canada. I would think "long term" = "buy and hold", so things like advice isn't welcome or appropriate. Minimize the commission and particularly minimize the other expenses involved in mutual funds or ETFs. And as others have said, be willing to lose your investment if you gamble on individual stocks.
As a bit of advice, don't purchase stock without a discount like ESOP for your own company. You're already investing your job, possibly your career there so why increase the risk for less gain. Similarly, you might want to avoid investing heavily in your own currency if it's not Dollars or Euros. Again, spread rather than concentrate your risks.
- DougMellon 5y agoI've been dollar cost averaging Vanguard index tracking ETF's and been very happy.
- enos_feedler 5y agoI understand the rationale behind not investing in your own company stock, but do we really treat our jobs as an “investment” in the same sense? To me it just makes sense that if you believe in the business you work for and have visibility into what is happening you might be in a better position to make a sound decision on this vs. an outsider? I’ve always held my company stock to all in levels.
- ilammy 5y agoIt's a risk management thing. If the company folds or has bad times, it would suck to lose both your job and a significant part of your investments. For that reason, you should not treat your company stock as more special, more safe, or more profitable – making your company's stock a significant part of portfolio just because you're working for them. On the contrary, it's more risky for you because you're working for them.
- jrumbut 5y agoWhen you're job is going well, you don't need the stock. If you need the stock it's probably because your job is ending (hopefully in a happy retirement, but regardless you'll lose your visibility). If a diversified portfolio goes to $0.00 it's going to be a disaster on such a scale that money won't matter anyway. That's my thinking, anyway.
- niij 5y agoAsk the people who worked at Enron, Bear Stern's, or even Sears for advice. Putting all your eggs in one basket is a bad idea, regardless of how beautiful you think the basket is. If you you really do have an information advantage and are trading based off of that information you may be breaking the law. But most likely that isn't the case.