Direct Mutaul Fund investing and Brokerage Houses
So now that I have signed a contract for a salary for the first time in my life, I actually have predictable income.
This is a first for me and I know that it means a more disciplined investing / saving stratgey.
In that vein, I have two question that I was hoping someone would know that answer to.
1) Once upon a time, most mutual funds and ETF funds would sell you shares directly via mail. For example, I own several Federated funds, and purchase my shares through the mail from them. I just fill out the order form and send a check. No brokerage fee's whatsoever. Just the fund expense fees if applicable (Rarely)
Do most mutual funds still do this?
If so, where would one find a list of contacts for the companies that manage these funds?
For example, say I was interested in a midcap blend fund from Fidelity. Who do I contact to buy this directly from the fund, instead of through a broker? (<----just an example)
2) I've decided on a reasonable $200 savings per month. then each three months I take 1/2 the saving balance and make a single trade order with a brokerage. Keeps equity trade fee's to a minimum by not making it monthly. That said, should I go with a local discount trade house like TDwaterhouse with actual offices in my city, or simply go with someone like sharebuilder.com or ameritrade.com for their low fees on the basis that their is no reason to stay local?
Staying local seems to build long term relationships, while online has lower trade costs per equity trade. What are your thoughts?
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