Investment Services

Investment Services questions and answers

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Q: How do I deduct investment advisory fees paid for professional investment services on my IRA,?
An IRA, by definition, is deferred tax account. However, I did not use money inside the IRA to pay for the fee. I used "other money" from a non-IRA brokerage account. What is the form I use to list my fee's (paid about $8K in 2007). Is this bundled with other deductions to meet a threshold? Is there anything else I need to know? Thanks all

A: Correct. It goes on Schedule A and is limited to 2% of your adjusted gross income.

Q: How do I deposit money into my IRA with Banc of America Investment Services?
I just opened a Roth IRA but don't know how to deposit money in. Do I just buy mutual funds and stocks? Is that how I would put money in?

A: You send them a check or do a automatic bank transfer into the account. If you send them a check be sure to write the account number on the check. After the moeny is deposited then you can buy mutual funds and stocks and also bonds and CDs too.

Q: Would like opinion of traders who use BAC investment services compared to Scottrade and other low cost brokers?
Do you prefer Banc of America investment services vs. Scottrade and others. If so, why?

A: Scott trade is good for those who do not trade a lot. If you trade a lot I strongly recommend Interactive brokers. Their customer service sucks but serious traders want to trade at a low cost.

Q: Urgent!! What is meant by Discretionary investment services?
Please give me a detail description and a list of services for Discretionary investment services. Thanks

A: A discretionary investment service is one where you give an investment management company the right to make buy and sell decisions on your account without checking with you first. So if you open an account with one of these companies you will tell them what you want to achieve (eg: capital growth or income) and the degree of risk and volatility you are prepared to accept. They will decide how to invest your money. You will receive notification after they have made a purchase or sale and should receive regular progress reports (once per quarter is usual). Services will vary by provider, it is normally possible to negotiate on the costs and other aspects of the service. Obviously you pay more if you want them to do more for you.

Q: Can we increase consumption in a given year without cutting back on either investment or government services?
Under what conditions can we?

A: This is a highly theoretical question, and the answer is yes. I assume you are referring to the macroeconomic equation of what you produce is what you consume. You're question is regarding “in a given year". You can take out a loan to fund current consumption. In essence, increase current consumption at the expense of future consumption.

Q: Where can I get information on an old stock transfer agent: Investment Companies Services Corporation?


A: Need to contact a stock broker. They can do the research and would know what to do.

Q: How much would a Investment Banker charge for their services?
For a class project, we need to imagaine that we are buying a large corporation and we need to get real numbers for trading all of our stocks. Thanks!

A: If you have to ask that question, you can't afford an investment banker. Here are some great learning resources for stocks. Be sure and try out the free stock trading simulator at Investopedia, or form your own contest for your classmates. http://investopedia.com http://investing.sitesled.com/ http://investedcentral.com http://jacksteiman.com http://bettertrades.com http://futures.tradingcharts.com/learning/ http://winners-and-losers.com/ Stock Charts Bigcharts.com http://www.stockTA.com http://www.stockcharts.com http://www.incrediblecharts.com... www.prophet.net americanbulls.com

Q: Do you think this is a good time to start an initial long-term investment in Energy and Energy Services?
If answering, please answer why or why not.

A: The planet's appetite for energy will continue to grow as more and more economies move into the 21st century. This will be partially offset by more efficient uses of energy and renewable sources, but consumption will grow. As such, long term this should be a god investment. It probably makes sense to distribute your investment among various energy options including oil, natural gas, coal, nuclear for the shorter term. And renewables such as wind, hydroelectric, geothermal, tidal, solar, fuel cells for the longer term. My current portfolio includes Marathon Oil (MRO) oil & gas, Zoltek (ZOLT) carbon fibers used in wind and soon to be used in cars to make them lighter and more fuel efficient, Composite Technologies (CPTC) wind & power transmission, and Plug Power (PLUG) fuel cells. Lots of other choices out there, but these are mine.

Q: Which online investment service do you recommend?
There are several online investment sites (eTrade, TD Waterhouse, Ameritrade, etc.). Please share your experiences with these services; perhaps a few pros/cons.

A: www.firstrade.com there fee stucture is one of the best!! and they have a great web site.

Q: how to start services business without any investment with focus on selling to corporate clients ?


A: First, ask yourself what kind of service business do you want to start. Then research about that business and learn about it. Better yet, prepare your business plan. It is hard to say "without any investment" because there will be investments, albeit on a small scale. For example: - your business registration (you pay) - if you need to have a license (you pay) - your marketing materials such as business cards and brochure explaining your services - your equipment unless you already have your computer, printer, Blackberry or other gadgets - if you participate in networking events where you can meet corporate clients, you pay for the membership fees The main thing is how are you going to reach the corporate clients for what you want? Cold calling means spending a huge chunk of your time on the phone -- and get a measly 2% return. Or if you try direct mail, that means spending for the ad copy, printing the letters, and mailing your letters. If you are intent on spending no investment, you must be EXTREMELY GOOD in referral selling, where your clients get referred to you by another person, colleague or another client. That way, you won't spend a dime in marketing because the client comes to YOU and not you going to your client I suggest you read the book "76 Ways to Build a Straight Referral Business, ASAP!" http://www.amazon.com/exec/obidos/ASIN/0941913058/powerhomebizguid I suggest you read the following books as well. Borrow them from your library or buy them from your favorite bookstore - No Cash, No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen - Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein - The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

Q: Bank of America investment services. Is this a good move or bad one?
I'm completely a novice to investing in the stock market. With Bank of America Investment Services, investments are not FDIC insured, are not guaranteed, and may lose value. How does this compare to other online brokers like Scottrade? Let's say I now have $5,000. in a money market fund with B of A investment Services, and I plan on buying shares of stock with that money. Other than the risks involved in trading stocks, what problems might I have with this type of brokerage service? Why would a brokerage like Scottrade be better?

A: I suggest you check out zecco (dot) com for fee-free trading. Also, prosper (dot) com, for alternative investing (suggest the lower interest paying (safer) investments). Good luck. Jack

Q: What is the major differences of financial services provided by top consulting firms and investment banks?
Is the difference simply the magitude of deals?

A: You must try this sites http://broker-valas.blogspot.com/ http://youbet-on-market.blogspot.com/ http://groups.yahoo.com/group/make_money_gold

Q: How can I become a licensed financial services rep?
I currently work for a bank and want to progress into investment services. I know that becoming an investment banker (mutual funds, annuities, etc...) requires a degree or certificate, but I want to know what kind of degree/cert this is. I live in Texas if that's relevant. Any ideas?

A: MJ, If your bank offers Financial Services, ask if they hire from within or if they offer a training program. If they do not, you should find a FS firm who is hiring new reps and interview with them to find out what they can offer you. There is no degree or cert. program required to become a FS rep, just securities and insurance licenses. The firm you will be working for should be able to help you obtain them, if not, check with the NASD and your state's insurance department. Good luck.