Tried a discount broker after 20 years with a big bank and it actually saved me $400

I was with Wells Fargo for like two decades for my investing stuff, just because it was easy having everything in one place. My buddy kept telling me to switch to something like Vanguard or Fidelity, said I was getting ripped off on fees. I finally got annoyed enough to try it about 6 months ago. Moved my IRA over and some cash account and right away I saw the trade commissions were like 80% less. Plus no weird account maintenance fees every quarter. I ran the numbers and in the first 6 months I saved around $400 easy. I still keep my checking at the bank for day to day stuff, but for investing I'm never going back. Has anyone else made the switch and found similar savings, or did I just get lucky with my specific setup?

2 comments

2 Comments

abby_carr577d ago

Respectfully, $400 isn't much when you factor in 20 years of lost compound interest.

hannah2407d ago

Yeah I get what you're saying abby_carr57 but honestly people also forget that $400 back then would have had more buying power than it does now. If you factor in inflation over 20 years that $400 could have been worth closer to $600 or $700 in today's money depending on the year. So you're really losing out on way more than just compound interest. It's like double losing.