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Old 08-22-2011, 03:36 PM   #21
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If somebody was a really good financial advisor, would he or she be working at a bank? Think about it. If they were really good, they would be doing it on their own and making a lot more money.

We had a mega bank taking care of our 401(k) and supposedly giving us fee based advise on that and our other investments. When my company switched the 401(k) to a small office of Edward Jones, it was amazing how much personal attention we started getting. We pulled our investment account from mega bank and stuck it with the EJ guy. Since our company has its 401(k) there and we have a seven figure account, they don't charge us except on a transactional basis. We buy and hold, so there aren't much in the way of charges. And we get all the info the backroom guys at EJ give their independent offices.

We have a plan and we asked the EJ to analyse it. My wife and I have talked about paying somebody a couple of thousand to go over the plan with us, but I think it works and the people at Edward Jones think it works, so we haven't gotten around to the truly independent advisor. We probably should, though. By the way, there are no annuities in the plan. Some muni bonds, AMT exempt, some stock and right now a fair amount of cash. Outside the EJ acccount, we've got a rent producing commercial property and another vacant commercial property that we've got listed and are in no hurry to sell.
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Old 08-22-2011, 04:12 PM   #22
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........ When my company switched the 401(k) to a small office of Edward Jones, it was amazing how much personal attention we started getting............
Do they send you birthday cards?
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Old 08-22-2011, 04:37 PM   #23
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When my company switched the 401(k) to a small office of Edward Jones, it was amazing how much personal attention we started getting. We pulled our investment account from mega bank and stuck it with the EJ guy. Since our company has its 401(k) there and we have a seven figure account, they don't charge us except on a transactional basis. We buy and hold, so there aren't much in the way of charges.
I understand that EJ doesn't charge you-- but out of curiosity, what's the expense ratio of the funds they have you in? And what's your overall expense ratio for your portfolio?
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Old 08-23-2011, 09:35 PM   #24
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Then to read about what registered reps think about you, go to this site: Registered Rep Forums |
Wow, my blood is boiling reading the registered rep forums. But, I did get a chuckle over this thread:

Responding to the Do It yourself (DIY), passive, anti-fee investor | Registered Rep Forums


Thanks for the link, LOL!

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Old 08-23-2011, 10:59 PM   #25
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Thanks, everyone, for taking the time to respond to my post, and especially for your suggestions on gaining more knowledge about investing.

I think, however, I need to clarify a few points. First of all, the reason I got hurt by the advice to purchase bank preferreds and Fannie/Freddie stock was the financial crisis. My advisor at the time was trying to respond to my low risk tolerance. She could hardly have known that the banking system itself was in jeopardy. Nor could she have anticipated that Henry Paulson's "bazooka" in his pocket would be used against Freddie/Fannie shareholders. So I don't blame her for anything, and I do think she was committed to looking out for my interests and addressing my concerns.

Similarly, I believe the same thing about my current advisor. He seems to me a very knowledgable person who again is attempting to respond to my need to sleep at night rather than worry about my assets. I'm the one who suggested annuities, although at the time the only kind of annuity I knew about were SPIAs. Over the last two years he has spent many hours with me at no charge whatever, and if he makes a commission on anything I can hardly begrudge him that, if what he recommends does in fact meet my stated needs.

I generally believe that most people try to do the right thing, including financial planners and investment advisors.

What concerns me is this unprecedented, unstable market environment, which dramatically increases my anxiety about risk. I did read one book recently, which I believe was called something like "Investing Made Simple", which made the case for a DYI approach using Vanguard funds. Following the advice with respect to one of the suggested portfolios in the book would have netted one exactly zero gains between 1997 and now.

Thanks again for your help.
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Old 08-23-2011, 11:09 PM   #26
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we haven't gotten around to the truly independent advisor. We probably should, though..
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Old 08-24-2011, 12:12 AM   #27
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Here is where your financial advisor learns about the best investments to recommend to clients: http://www.registeredreps.com/
Then to read about what registered reps think about you, go to this site: Registered Rep Forums |
Holy crap, even with hip waders and an air-fed CHT suit I still feel like I need to visit the decontamination showers...

Nice to see how those guys have our best interests at heart. I hope they're on that board because they can't find any clients.
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