This is the third post in a series on finding the best place to hold an IRA.   Previously, I reviewed transaction fees for stocks and mutual funds and the number of mutual fund offerings at each brokerage.  This time I’ll look at the types of assistance offered.  Then I’ll write a post summarizing all the pros and cons.

Even if you’re comfortable with online investing and know the basics of retirement planning; at some point you’ll have a question that just needs to be answered by a person.  Not a search engine or an automated telephone response system — a real, live person.  So I went online to see what sort of assistance each brokerage had to offer.  I also noted what types of online research they offered.

Here’s a summary of what I found online for each brokerage.  Of course, before taking action and moving your assets, please double-check with the brokerage(s) for your particular situation.

All brokerages offer on-line research and stock and mutual fund selection tools.  Each site’s search tools allow slightly different criteria, so you might try each one, if this feature is important to you.  Morningstar also offers excellent search tools, independent of brokerage, so check it out also.

All brokerages offer broker-assisted transactions, for a fee.

Fidelity: Fidelity is the 500 lb. gorilla in this category with lots of on-line information for the insomniac investor.  A stable of finance writers offer newsletters and tips for everyone from recent grads to retirees.  They have phone numbers to talk to representatives for any type of investment product as well as advisors to help plan an investment strategy, for a fee.  I haven’t used this service personally, but I might guess that your portfolio would primarily consist of Fidelity products.  They also have walk-in offices in 32 states; eight in Massachusetts.

E*Trade: They do have financial advisors, but it’s not clear whether they work for E*Trade or are independent consultants.  They have offices in 16 states; one in Massachusetts (in Boston).

Scottrade: Has 394 offices and a presence in most states.  Offices provide trade assistance but not financial planning.

TD Ameritrade: Has an online “virtual investment consultant,” which is as useless as the Paperclip assistant in Microsoft Word and not nearly as entertaining.  About 100 offices nationwide, including three in Massachusetts.  Offers referrals to independent financial advisors.

Schwab: More than 300 offices nationwide, including about seven in Massachusetts.  Website lists a refreshingly detailed explanation of how financial consultants are paid.  Schwab offers different strength grips of hand-holding from pre-packaged portfolios with periodic rebalancing to one-on-one advisory relationships.  The fees seem to be lower than industry average.

Full disclosure:  I do not receive any renumeration from any brokerage.  I am presently a customer of Fidelity and E*Trade (but that doesn’t mean I favor them).

Tags: Comparing brokerages, investment advice, IRA

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