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I have friends that use Financial Advisers. They consider them "friends" and get invited to their annual cookouts. They ignore the fees and performing their own due diligence because their "friends" take care of them. It works the same with any money transactions and those professions. Any salesmen, and FA's are salesmen, get business by being charming, acting interested in you, and making you trust them whether they deserve it or not. Part of the job.
Your job is to remember that this is a business relationship that works for both of your benefits. They are not your friends unless once the money stops flowing you still socialize. I think his approach to you says a lot about him. He got no leads from you so you aren't worth it to him. If you had brought in more lucrative customers, he might not have jettisoned you. A fee only guy won't do this to you.
I agree with everyone saying you should invest on your own. I switched everything into Fidelity after we retired. It's a treasure trove of information, ideas, and advice. Managing my own money has been a great and rewarding experience. My fees with an FA would have been excess of $1000 a month. I spend that on fun. I sleep at night knowing that my financial guy (me) has my best interests at heart. If I had doubts, I would hire a fee only guy once a year to check on my work.
I have friends that use Financial Advisers. They consider them "friends" and get invited to their annual cookouts. They ignore the fees and performing their own due diligence because their "friends" take care of them. It works the same with any money transactions and those professions. Any salesmen, and FA's are salesmen, get business by being charming, acting interested in you, and making you trust them whether they deserve it or not. Part of the job.
No matter how much you invest with them, it's never enough money.
They want accounts they can churn to make more money for themselves, plus leads from their customers to direct them to more customers.
Even if investing larger amounts with these guys, they are still not satisfied.
I have my taxable and rIRA at Vanguard and am satisfied, however I really haven't had any need to interact with Vanguard. I just use the web system to transact and haven't had to do anything too complicated. I also did a transfer on death for the taxable and beneficiaries for the rIRA online with no issues. I've heard complaints about their customer service particularly in terms of respecting POA's (they demand you use their specific company form not the state's general form) which can be a major issue.
I moved all my funds over from a brokerage firm a few years ago, except for one. The broker has asked me ever since to reconsider and move the funds back but I told them I didn't care for the fees that they charge (and it's also a hassle to transfer all these funds back and forth). The one remaining fund I have is an education college fund that I still have with this brokerage. I left it there because it was doing pretty well in spite of the loading fees. The broker called me recently and said, "just take this fund out too, I'm done with you. Your 14K a year doesn't help me." Then he hung up.
Is there some reason you don't want to move this account to the same place you moved the others to?
Has this person ever churned your account or are you just throwing this term around ?
Everyone in business should be looking for this and there’s nothing wrong with it
Well, i know the type of plan I still have with him can't be churned very often and that's probably why he doesn't like it. I know enough about people in this industry to know that they loathe plans that can't be churned. Yes, churning is part of how they earn money. It's illegal to churn accounts but also very difficult to prove. I had a lot of accounts with him at one time and they were invested in so many different things that it made my head spin.
The other way they earn money is harassing their customers for more leads and referrals. It's like MLM.
The fee only adviser that someone else mentioned doesn't have to make money that way.
Well, i know the type of plan I still have with him can't be churned very often and that's probably why he doesn't like it. I know enough about people in this industry to know that they loathe plans that can't be churned. Yes, churning is part of how they earn money. It's illegal to churn accounts but also very difficult to prove.
Churning is very easy to prove. You haven’t been churned and you don’t know enough about the industry because it’s pretty rare that it does occur. You are just throwing buzzwords around
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The other way they earn money is harassing their customers for more leads and referrals. It's like MLM.
The fee only adviser that someone else mentioned doesn't have to make money that way.
You don’t think fee only advisors ask for or work on referrals? You don’t know the industry at all
I've had a financial advisor for years- have followed him from Edward Jones to Morgan Stanley to UBS. I've NEVER seen any of that behavior from him over the 15 years I've worked with him. I have a lot of money in the account but when we do the annual Monte Carlo simulations he incorporates the assets I have with Fidelity (almost $500K) but has never pressured me to move them. He's never asked for referrals to family and friends. I've also got almost $40K in 529s at Edward Jones and the broker there knows that I have a LOT elsewhere; I'm putting it into American Funds and get a big break on the up-front fees because I have so much of it in my UBS accounts. The EJ guy hasn't pressured me for more money or asked for referrals, either.
Your advisor sounds like a boor but I like the idea of leaving the money in your small account just to spite him.
You don’t think fee only advisors ask for or work on referrals? You don’t know the industry at all
Many business people work off referrals, that's quite common. But the difference is, they don't repeatedly pester their customers for referrals. The high pressure is how MLMs and pyramids operate, by squeezing people to give them names and contact information of every person they know, and to get everyone else in their family into the pyramid scheme. If he'd just asked, "hey can you refer me to anyone else you know?" that would have been okay. But he was also contacting my spouse all the time wanting him to invest with him also, as well as constantly requesting I give him additional name and contact info of people in my family. And most people I know don't want to invest with brokers anyway.
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