Q&A: No Friend Investing

Q:

 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.

A:

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.