investing retirement funds with an insurance co ie State Farm vs investing with a Company like Wells Fargo, Charles Schwab.
I’m thinking of moving my IRA from Wells Fargo to State Farm. I feel like I get more personal attention. But I’m concerned about investing with an insurance company.
Terry Says
It all depends on the product and the costs. Big companies like Wells Fargo and State Farm — whether brokerage firm or insurance company) tend to have higher fees and commissions — which is what pays for the hand-holding you’re seeking. If you’re concerned about costs and the eventual impact on your retirement fund growth, then go to Fidelity or Vanguard and buy low-cost, no-fees mutual funds. They’ll help you decide how to allocate your money to the funds, depending on your age and stage in life. But they won’t do the hand-holding part!
If you’re investing in a retirement account through an insurance company, make sure your investment is in a SIPC-protected brokerage account, and not in an insurance policy that provides variable growth alternatives.