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domskynetlabs
Full Member
Cash: $ 21.09
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Joined: 24 Nov 2004
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| Anything wrong with doing this? |
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I have 1k in a wellsfargo brokerage account when i transfered the money into the account it was turned into 1k shares of wells fargo government money market class A. Investment advice says know your company and or diversify etc etc Ive read tons of books but Ive taken no educated action. How stupid would it be for me to buy lets say 1k shares of any large fund something like the vanguard 500? just set it and forget it. or is 1k not enough money to sustain the ups and downs of the market and that fund?
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Wed Dec 29, 2004 7:20 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Joined: 05 Oct 2004
Location: Illinois
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There's nothing at all wrong with that concept. You would probably be well served to dollar-cost-average additional funds into an S&P 500 index fund over time, in order to "smooth" the market fluctuations.
What concerns me most is that Wells, by default, put you into Class A shares in a money market account. Class A shares are front-load shares, which means that you'll pay a commission on them (typically). Be careful which share group you put your funds into. Look for Class F or Class R or no-load funds when you invest, especially if you're handling the account on your own (not through a broker). You'll keep more of your money this way.
Take care -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Dec 29, 2004 12:39 pm |
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xboxundone
Senior Member
Cash: $ 67.83
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Joined: 19 Sep 2004
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quote:
Originally posted by BlankenshipFP
There's nothing at all wrong with that concept. You would probably be well served to dollar-cost-average additional funds into an S&P 500 index fund over time, in order to "smooth" the market fluctuations.
What concerns me most is that Wells, by default, put you into Class A shares in a money market account. Class A shares are front-load shares, which means that you'll pay a commission on them (typically). Be careful which share group you put your funds into. Look for Class F or Class R or no-load funds when you invest, especially if you're handling the account on your own (not through a broker). You'll keep more of your money this way.
Take care -
I agree with BFP on this on.... I have heard that Class A is the default that Wells will put yours into if you don't choose otherwise .... which works out best for them but not you....
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Wed Dec 29, 2004 1:08 pm |
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domskynetlabs
Full Member
Cash: $ 21.09
Posts: 95
Joined: 24 Nov 2004
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Im very disapointed to hear that this fund is bad. Well If I use all the fund in this account to buy vanguard 500 or wilshire 500 what will happen to the money market account?seeing that all my funds will no longer be in the wells mm but in stock
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Wed Dec 29, 2004 4:20 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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Oh, for pete's sake! How often do we have to see this kind of schlock?
Sorry about that, I just had to vent a bit. Back to your original question domskynetlabs:
Whether or not you reinvest the entire account in some other fund, your fees have already been paid on this Class A shares account. The fees are charged up front - so they've already been charged.
Just be careful and choose no-load funds for the re-investment. That's about the best advice I can give you at this point.
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Dec 29, 2004 11:46 pm |
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domskynetlabs
Full Member
Cash: $ 21.09
Posts: 95
Joined: 24 Nov 2004
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I understood the fee was already paid upfront I just wonder how I will choose between various funds. I wonder if I have to stick with Wells mm accounts from the prospectus. California tax free etc etc. funds. Ill give them a call. Your replies did help me.
quote:
Originally posted by BlankenshipFP
Oh, for pete's sake! How often do we have to see this kind of schlock?
Sorry about that, I just had to vent a bit. Back to your original question domskynetlabs:
Whether or not you reinvest the entire account in some other fund, your fees have already been paid on this Class A shares account. The fees are charged up front - so they've already been charged.
Just be careful and choose no-load funds for the re-investment. That's about the best advice I can give you at this point.
Hope this helps -
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Sat Jan 01, 2005 11:48 pm |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 795
Joined: 19 Sep 2004
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quote:
Originally posted by domskynetlabs
I understood the fee was already paid upfront I just wonder how I will choose between various funds. I wonder if I have to stick with Wells mm accounts from the prospectus. California tax free etc etc. funds. Ill give them a call. Your replies did help me.
quote:
Originally posted by BlankenshipFP
Oh, for pete's sake! How often do we have to see this kind of schlock?
Sorry about that, I just had to vent a bit. Back to your original question domskynetlabs:
Whether or not you reinvest the entire account in some other fund, your fees have already been paid on this Class A shares account. The fees are charged up front - so they've already been charged.
Just be careful and choose no-load funds for the re-investment. That's about the best advice I can give you at this point.
Hope this helps -
Keep us posted and we will gladly continue to give advice 
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Sun Jan 02, 2005 12:16 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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| Schlock Defined... |
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For those folks reading this thread, my venting about the "schlock" was regarding a silly post that was removed. I was not commenting on any of the posts that remain in this thread.
Just wanted to make sure there wasn't any misunderstanding. 
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Sun Jan 02, 2005 8:13 pm |
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