Q&A: No Friend Investing
I currently have an Roth IRA with Ed Jones and would like to open one with Vanguard. Can I have more than one open at a time? I'm trying to refrain from having to cancel my "Ed" account because my broker is a relative and a good friend. I feel that his advice is the best he can give me for the tools that he has to work with.
Yes, you can have as many IRAs (Roth or otherwise) as long as you don't exceed your annual funding limit of either $5,500 or $6,500 (over 50). You're smart to invest future Roth IRAs with Vanguard, but you may still catch some grief for not giving those dollars to your relative. I believe that refraining from investing with friends and family members who collect commissions allows for healthier relationships. Maybe you should encourage your relative with Ed to start "Jonesing" for a more honorable career as a fee-only advisor.