When I wrote my book, The Global Expatriate’s Guide To Investing, I spoke with a Raymond James representative about building low cost portfolios of index funds for international teachers.
This was the idea. Teachers with at least $20,000 to invest could pay a 1 percent wrap fee and Raymond James could use index funds that cost 0.15 percent or less.
That’s the going rate for a low-cost index fund. But if you use Raymond James, and you ask for a portfolio of index funds, make sure you are vigilant.
You shouldn’t have to pay a commission for each index fund you buy.
And your advisor shouldn’t stuff your portfolio with the highest cost index funds that he or she can find.
Raymond James agreed to a 1 percent wrap fee and low cost index funds for the clients who wanted such a portfolio.
But not every Raymond James representative appears to be playing fair.
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