The Wrap Sheet
Wrap fee programs bundle your investments into one neat package.
All for one, and one for all. When it comes to "wrap fee" investment programs, that about sums it up. The term "wrap fee program" is usually used to describe a number of investment services that are bundled together and covered by a single fee. Unless you've been living on a desert island, you've probably heard of this kind of investment account, one whose fee includes trading and management costs as well as investment advisory services.
Once the domain of only the wealthiest investors, even the less well-heeled can now participate. So why bother with an account that does it all for you when you can seemingly just as easily do it yourself? If you have the time to follow capital markets nationally and abroad; understand annual reports and analysts' findings; follow an asset allocation model; and amass enough information on companies of all sizes to make decisions that could affect your financial future, step right up and take a crack at it. (And that's just for the stock market. Don't forget the bond market: In case stocks don't keep going like the Energizer Bunny, you'll be glad you diversified your holdings.) But if you'd like to know your money is working as hard as you do and still have time to breathe, perhaps a little help wouldn't be a bad idea.
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