Bond timing fees?- Legitimate charge?

[A854321]

I am reviewing my widowed, 78 year old mother's IRA. She has a less-than-stellar investment counsellor who is the typical "nice guy" who takes care of old ladies. On a portfolio of $550K, she is charged approximately 0.27% quarterly. I also note a "bond timing fee" of about $300 or so each quarter. Why would this be necessary? I am concerned about these fees being excessive and eroding her portfolio from underneath her. She is concerned because if she wants money all she has to do is call "Doug" to get money sent to her, and is, at this point, terrified of doing internet transfers or banking.

What do you guys think?

 

[Texas Proud]

The problem is if your mother 'loves' it, you are stuck...

And she is paying the bill for this, not you..

I was able to get my mom to Vanguard and she just writes a check and deposits in her account if she needs money... I do the rest... but it took me awhile to get there...

 

[FinanceDude]

I am reviewing my widowed, 78 year old mother's IRA. She has a less-than-stellar investment counsellor who is the typical "nice guy" who takes care of old ladies. On a portfolio of $550K, she is charged approximately 0.27% quarterly. I also note a "bond timing fee" of about $300 or so each quarter. Why would this be necessary? I am concerned about these fees being excessive and eroding her portfolio from underneath her. She is concerned because if she wants money all she has to do is call "Doug" to get money sent to her, and is, at this point, terrified of doing internet transfers or banking.

What do you guys think?

How much is in bonds? I would ask "Doug" about the fee, I've never heard of that or charged that in my career..........

 

[Leonidas]

How much is in bonds? I would ask "Doug" about the fee, I've never heard of that or charged that in my career..........

I'm glad you asked that question because I was afraid of asking it and being found out for being a financial dummy. I Googled the phrase and got squat, so I am as mystified as you are. I agree, I would want to know what "Douggie" has to say about the bond timing fee.

My question is, is it the fear of the internet that keeps her from switching or is the Dougster just so darn cute, polite and lovable that she can't imagine doing business with anyone else? If it's the former, then she might be just as happy with a broker that offers telephone and/or office service without all of Doug's fees.

If it's the latter...well push Doug in front of a bus or give him a free vacation to Texas and the rabid armadillos will do the rest.

 

[A854321]

No, she doesn't love Douggie

She asked me to look at her portfolio because she was concerned by what she perceives as poor performance. For example, she called and complained to him because she "lost $17,000" last month. She doesn't love Douggie- she really detests him. When I suggested a simplified Vanguard type fund, she relates that she is at this time uncomfortable with using the internet for these types of things.

I have to go back and calculate the bond %.

 

[FinanceDude]

She asked me to look at her portfolio because she was concerned by what she perceives as poor performance. For example, she called and complained to him because she "lost $17,000" last month. She doesn't love Douggie- she really detests him. When I suggested a simplified Vanguard type fund, she relates that she is at this time uncomfortable with using the internet for these types of things.

I have to go back and calculate the bond %.

Well, SOME bonds took hits in the last month or so. Unless that't their form of a "markup" on the bonds, I have no clue as to what bond timing fees are.......

 

[ERD50]

When I suggested a simplified Vanguard type fund, she relates that she is at this time uncomfortable with using the internet for these types of things.

Can't you do 100% of your business with Vanguard by phone and/or mail?

-ERD50

 

[brewer12345]

Well, SOME bonds took hits in the last month or so. Unless that't their form of a "markup" on the bonds, I have no clue as to what bond timing fees are.......

Sounds like bull-puckey to me.

 

[Texas Proud]

Has she bought any new bonds recently Maybe it is the accumulated interest.... probably not since it is 'fixed'...

OR.... maybe they give her access to her money in the morning even though they have not received the money and 'charge' her for that

Have her move to Vanguard... YOU can do all the online work for her and just show her the results... have a MM account and she has checks she can write to deposit money into her checking whenever she wants... it is GREAT...

Also, they DO have phone service and my mom has done that herself... no problems at all.