Express IRA's

[Brian EA]

I assist my clients in opening IRA's as well. You referenced the low intial investments that are offered through the HRB product. The majority of my clients are in IRA's sponsored by American Funds, and only need to make a minimum investment of $50. With American Funds they have a very broad range of funds from which to choose, including money markets, growth and income funds and speculative investments, with potential earnings in the 15-30% range. And, American Funds offers some of the lowest ongoing management fees in the market. I'm not trying to sell anyone on this board an investment, but I did want to point out that there are other options that don't require $1000 minimum investments (like Vanguard or Fidelity). There are many options available to young savers, and I agree with Mr. Spitzer (whom I must say is normally on the other side fo the political spectrum from my redneck, southern butt) that HRB did take advantage of these clients and most likely put them in poor investments relative to their objectives (rule #1 in advising clients). My other question is, who is "selling" these funds to the client? It is illegal, at least here in NC, to sell a security without a license. Am I supposed to believe that there is a licensed securities salesperson in every HRB office? I would venture to say NO.

Just my 2 cents worth!

Your 2 cents is worth every penny