Tuesday, February 17, 2004
More Letters...
The article on First Command generated quite a bit of email.
Here's one from a CPA:
you might want to mention the effect of a 50% commission and large 12b-1 fees on the ability to compound the original amount. At 7% it would take you ten years to get back to even.
With no commission
1-10 3,000 to 6000
11-20 12,000
21-30 24,000
31-40 48,000
with a 50% commission
1-10 1,500 to 3,000
11-20 6,000
21-30 12,000
31-40 24,000
simplistic but an untimate cost of $24,000 is a lot of money for bad advice.
More:
I guess "First Command" is the new name for "USPA/IRA", which was the 50% hammer financial folks when I served from 89-93. I could not believe people signed up with them. I would see O5s walking around proudly with their USPA/IRA coffee mugs and it would immediately change my opinion of them ever so slightly, because I knew they were at least financially gullible. In the early 90s, I read one issue of Changing Times n/k/a Kiplingers, and made nice cash in biotech stocks (for a couple years).
I never understood the logic of people paying so much to one company.
GS
Haven't heard from First Command yet. But you can read fundalarm.com's take on First Command here.
(scroll down a bit to the paragraph that begins "Here are some facts." Brutal. :) )
Splash, out
Jason
Here's one from a CPA:
you might want to mention the effect of a 50% commission and large 12b-1 fees on the ability to compound the original amount. At 7% it would take you ten years to get back to even.
With no commission
1-10 3,000 to 6000
11-20 12,000
21-30 24,000
31-40 48,000
with a 50% commission
1-10 1,500 to 3,000
11-20 6,000
21-30 12,000
31-40 24,000
simplistic but an untimate cost of $24,000 is a lot of money for bad advice.
More:
I guess "First Command" is the new name for "USPA/IRA", which was the 50% hammer financial folks when I served from 89-93. I could not believe people signed up with them. I would see O5s walking around proudly with their USPA/IRA coffee mugs and it would immediately change my opinion of them ever so slightly, because I knew they were at least financially gullible. In the early 90s, I read one issue of Changing Times n/k/a Kiplingers, and made nice cash in biotech stocks (for a couple years).
I never understood the logic of people paying so much to one company.
GS
Haven't heard from First Command yet. But you can read fundalarm.com's take on First Command here.
(scroll down a bit to the paragraph that begins "Here are some facts." Brutal. :) )
Splash, out
Jason
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