need input re: investment & acct. closure

leslieinbham · 01-14-2008, 01:45 PM

Okay. I have a teacup sized investment with Smith Barney that my dad has always managed, more or less. Every year I update them w/my current address and every year they send it to my dad (dif. time zone) and every year I hear about it from him, but that's another tale.

Anyway, I'm being charged a low balance fee and he suggests closing the account and moving the money elsewhere. Like under my mattress? I would be tempted to use the amount to pay down some debt, but it really is the only $$ I have in the freaking world. I have no idea where to put it. Ack.

Also have a feeling that dad is continuing his pattern of cutting ties w/children b/c we are such ungodly (read: un O'Reilly) people. Pat Conroy, anyone? Anywhoo, I won't be going back to anytime soon (teacher w/3 year old twins and 7 year old) and when I do, it won't be full time.

thanks in advance for any thoughts you might have.

leslie

rstlne · 01-14-2008, 01:49 PM

You could transfer the brokerage account to another brokerage that has a lower or no minimum balance requirement. I've done that several times already. It's just a matter of opening an account with the new brokerage and asking them which forms you need to fill out and submit to initiate the transfer.

The Honest Dollar · 01-14-2008, 07:00 PM

Alternately, if you have no interest in managing your investments, you could sell the investments and stick the cash into a long-term CD or a high-yield savings account. You can find above 4% yields in either of those two options, and you should be able to find a bank that won't charge you fees. The benefit of the CD over the savings account is that you lock in rates so that even if the Fed lowers interest rates (which will mean lower rates in savings accounts), the CD will yield the same rate throughout the investment period. The benefit of the savings account is that, unlike a CD, you can move money in and out whenever you want (though this has a downside too if you're likely to spend the money needlessly).

I think it's important for everyone to learn how to invest eventually so they can manage their retirement accounts and earn better returns than they can get in cash accounts (like CDs or savings accounts). But if you're not up to it, then it's better to park the money somewhere safe with decent growth.

alex · 01-14-2008, 07:59 PM

I use and recommend TradeKing.

Whichever broker you decide on, they'll be very happy and helpful with the transfer.

There's more advice on this topic in this thread: http://www.wisebread.com/forums/pers...-open-843.html

01-14-2008, 01:45 PM	#1
leslieinbham Junior Member Join Date: Jan 2008 Posts: 23 Reputation: (11)	need input re: investment & acct. closure Okay. I have a teacup sized investment with Smith Barney that my dad has always managed, more or less. Every year I update them w/my current address and every year they send it to my dad (dif. time zone) and every year I hear about it from him, but that's another tale. Anyway, I'm being charged a low balance fee and he suggests closing the account and moving the money elsewhere. Like under my mattress? I would be tempted to use the amount to pay down some debt, but it really is the only $$ I have in the freaking world. I have no idea where to put it. Ack. Also have a feeling that dad is continuing his pattern of cutting ties w/children b/c we are such ungodly (read: un O'Reilly) people. Pat Conroy, anyone? Anywhoo, I won't be going back to anytime soon (teacher w/3 year old twins and 7 year old) and when I do, it won't be full time. thanks in advance for any thoughts you might have. leslie

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01-14-2008, 01:49 PM	#2
rstlne Senior Member Join Date: Jan 2008 Location: New Jersey Posts: 364 Reputation: (115)	You could transfer the brokerage account to another brokerage that has a lower or no minimum balance requirement. I've done that several times already. It's just a matter of opening an account with the new brokerage and asking them which forms you need to fill out and submit to initiate the transfer.

01-14-2008, 07:00 PM	#3
The Honest Dollar Member Join Date: Dec 2007 Location: New York Posts: 90 Reputation: (63)	Alternately, if you have no interest in managing your investments, you could sell the investments and stick the cash into a long-term CD or a high-yield savings account. You can find above 4% yields in either of those two options, and you should be able to find a bank that won't charge you fees. The benefit of the CD over the savings account is that you lock in rates so that even if the Fed lowers interest rates (which will mean lower rates in savings accounts), the CD will yield the same rate throughout the investment period. The benefit of the savings account is that, unlike a CD, you can move money in and out whenever you want (though this has a downside too if you're likely to spend the money needlessly). I think it's important for everyone to learn how to invest eventually so they can manage their retirement accounts and earn better returns than they can get in cash accounts (like CDs or savings accounts). But if you're not up to it, then it's better to park the money somewhere safe with decent growth.

01-14-2008, 07:59 PM	#4
alex Senior Member Join Date: Dec 2007 Location: Wilson's basement Posts: 100 Reputation: (59)	I use and recommend TradeKing. Whichever broker you decide on, they'll be very happy and helpful with the transfer. There's more advice on this topic in this thread: http://www.wisebread.com/forums/pers...-open-843.html