How to Select the Right Stock Broker

Now that you’re ready to buy and sell stock, it’s time to hire a stock broker to help you get the job done right. There are three types of stock brokers to choose from: full-service brokers, discount brokers, and online brokers. A full-service broker is the most expensive type of broker, while an online broker is the cheapest. Each type of broker offers different type of advice.

A full-service broker has various responsibilities, including contacting the investor with ideas on which stocks to purchase. This type of broker offers more than just advice. They back up their information with studies and information from their company. A full-service broker is also responsible for monitoring the investor’s selections and providing crucial information when necessary.  Of course, more work means more money. Full-service brokers are more expensive to hire than discounters and online brokers.  How much do they cost? Typically, a full-service broker gets a commission off a percentage of your sale price.

On the other hand, discount brokers and online brokers don’t do as much work as full-service brokers. For this reason they are more affordable to hire, but it also means you might have to do the majority of the leg work. If you hire a discounter or online broker, obtaining the information and research required to buy and sell your stock will be mostly up to you. It might be worth it for you if you’re already knowledgeable about the subject. For example, a discount broker costs about one-third the price of a full-service broker, while an online broker costs about $5 to $15 a trade.

This feature blog was provided by a boutique real estate company called Plan B International. Located in South Florida, Planbinternational.com provides investment opportunities throughout Florida.

Death and taxes

Benjamin Franklin once said “in this world nothing can be said to be certain, except death and taxes.” The Federal government’s estate tax exclusion now is at $5.25 million. Many estates are much less than the limit and therefore, many thinks that their beneficiaries can escape from paying estate tax when they die. It may be true for Federal tax purposes but not for state taxes. A total of 21 states and the District of Columbia levy an estate tax. Limits vary among states. The lowest exclusion comes from New Jersey at only $675,000. Many states levy estate tax for estates over $1 million including Massachusetts, Minnesota, New York, and Oregon. It is easy for someone with a sizable estate and a home could fall into the estate tax category. Be mindful that this is the tax on the estate itself that exceeds a certain threshold and it is different from inheritance tax that the person who inherits the estate will be subject to pay.

Many create bypass trusts to maximize each partner’s exclusion amount. Another strategy to use is to gift while you are living subject to annual gift limitations to reduce the size of the estate. Another will be to gift to a charitable organization.