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Old 02-24-2015, 06:02 PM
 
Location: Central Massachusetts
4,800 posts, read 4,848,939 times
Reputation: 6379

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Quote:
Originally Posted by biscuitmom View Post
The prospectus doesn't provide information about the fees/commission paid to the broker or financial advisor recommending a fund/investment.
True but today most of us are investing using employers accounts. Your employers generally pick up a portion of those fees too.

Quote:
Originally Posted by The Thomas J View Post
I think something like this is needed. My Father was steered towards a life time annuity at age 70 that he should not have taken out. His accountant scared him into taking it and than he died less than 2 years later, left 6 figures on the table and we aren't even sure if actually knew what he was doing when he took the annuity out. What was very upsetting to me was when I requested the break down of the annuity interest rate, fee's and commissions and nearly $26,000 was in commission and broker's fees and the rate was lower than the national average. That annuity was not a viable product, especially for a man my Father's age and for that amount of money. One money manager I spoke to told me that the word annuity is a bad word.

This proposal will not change that. There will be scammers and schemers and this proposal will do nothing to stop that. I am sorry that your dad was sucked into a bad investment. Annuities are not entirely a bad word. They have their uses. You just have to understand them. You have to understand all investments.

My point on what this whole thread here is we should not let the president do anything to the system. He may mean well but everything he has tried to fix has broken. Healthcare is supposed to be cheaper, it isn't. He is constantly passing presidential decrees and circumventing congress on so many things. It is just wrong that the president gets mixed up in this.
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Old 02-24-2015, 11:44 PM
 
10,817 posts, read 8,065,019 times
Reputation: 17029
Quote:
Originally Posted by golfingduo View Post
There will be scammers and schemers and this proposal will do nothing to stop that. I am sorry that your dad was sucked into a bad investment. Annuities are not entirely a bad word. They have their uses. You just have to understand them. You have to understand all investments.
It's not clear, do you think requiring "financial advisors" to disclose their commissions when advising investors, is a bad thing?
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Old 02-25-2015, 06:50 AM
 
Location: Great State of Texas
86,093 posts, read 72,515,954 times
Reputation: 27565
Quote:
Originally Posted by biscuitmom View Post
It's not clear, do you think requiring "financial advisors" to disclose their commissions when advising investors, is a bad thing?
If you use a brokerage firm and stock brokers as your financial advisors then you are already given the commission information.
And you get monthly statements that will show any commissions made from trading in your account.

What most people don't put together is that brokers make their money off commissions and churning your account is how they generate commissions.

And given the vast amount of information, educational seminars, and online trading, one doesn't even need a broker today.

A fee only financial planner working independently of any brokerage company is the way to go if you need someone to plan out your investment strategy.
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Old 02-25-2015, 08:17 AM
 
33,046 posts, read 22,062,610 times
Reputation: 8970
Quote:
Originally Posted by HappyTexan View Post
The best person to take care of YOUR MONEY is YOU.
And if you don't know about investments then you need to take it upon yourself to learn about them before you retire and have a boatload of money that you now need to manage.

All during my working years I came upon countless number of folks in my company that had no clue about investments and stuck all their 401K money into whatever the newsletter told them.

What you suggest requires a worker have money to invest.
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Old 02-25-2015, 08:51 AM
bUU
 
Location: Georgia
11,882 posts, read 8,663,647 times
Reputation: 8401
I suspect the intention is that they should "borrow it from their parents".
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Old 02-25-2015, 01:07 PM
 
Location: Idaho
4,627 posts, read 4,468,721 times
Reputation: 9050
Quote:
Originally Posted by HappyTexan View Post
...A fee only financial planner working independently of any brokerage company is the way to go if you need someone to plan out your investment strategy.
Absolutely! Except in my case, I need financial retirement advice. My appointment isn't until the end of April. Wondered why it is so far out, but guessed that they are busy with the tax filing season.
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Old 02-25-2015, 09:10 PM
 
1,168 posts, read 2,402,696 times
Reputation: 3485
Quote:
Originally Posted by HappyTexan View Post
The best person to take care of YOUR MONEY is YOU.
And if you don't know about investments then you need to take it upon yourself to learn about them before you retire and have a boatload of money that you now need to manage.

All during my working years I came upon countless number of folks in my company that had no clue about investments and stuck all their 401K money into whatever the newsletter told them.

yes and while you're at it have them cut their own hair, bake the cake for their children's wedding, replace the car transmission and swimming pool liner, repair their own aneurism, perform their own hip replacement, and make their own clothes- I have no more business managing large amounts of money than I do any of these other things- get real-

Last edited by exit82; 02-25-2015 at 10:38 PM..
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Old 02-25-2015, 11:13 PM
 
10,817 posts, read 8,065,019 times
Reputation: 17029
Quote:
Originally Posted by HappyTexan View Post
If you use a brokerage firm and stock brokers as your financial advisors then you are already given the commission information.
And you get monthly statements that will show any commissions made from trading in your account.

What most people don't put together is that brokers make their money off commissions and churning your account is how they generate commissions.

And given the vast amount of information, educational seminars, and online trading, one doesn't even need a broker today.

A fee only financial planner working independently of any brokerage company is the way to go if you need someone to plan out your investment strategy.
Stock brokers, online trading sites, and fee-only planners are not the target audience of the proposed change. Rather it's the myriad of institutions/persons who handle retirement funds and are anything but transparent in disclosures of their commissions. These range from trustee boards who handle large pension accounts to CPA's and insurance salesman who recommend and/or sell them to individuals.
The great majority of retirement funds are in the hands of the latter.
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Old 02-25-2015, 11:37 PM
 
Location: Great State of Texas
86,093 posts, read 72,515,954 times
Reputation: 27565
Quote:
Originally Posted by exit82 View Post
yes and while you're at it have them cut their own hair, bake the cake for their children's wedding, replace the car transmission and swimming pool liner, repair their own aneurism, perform their own hip replacement, and make their own clothes- I have no more business managing large amounts of money than I do any of these other things- get real-
Too many people just hand their money over to a stranger and then years later lament about where it all went.

If you can't manage a large amount of money nor have the desire to learn to do it then just stick it all in an immediate annuity and get a monthly check for the rest of your life.
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Old 02-26-2015, 12:23 AM
 
6,353 posts, read 5,161,362 times
Reputation: 8527
Quote:
Originally Posted by luv4horses View Post
So what has been happening up until now? Have they not been behaving responsibly?
No, most advisors recommend investments that pay high fees to the advisor, not high after-fee returns to the investor. Fee-only planners with nothing to gain from recommending one investment over another (other than a good reputation) are rare.
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