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You won't believe this! (or maybe you will)
Old 03-07-2007, 07:28 PM   #1
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You won't believe this! (or maybe you will)

I am a dentist in California, age 57. For some 17 years I have used a financial planner, blindly trusting in his advice. (Yes, I know...it was stupid!). He was personable and likable. He got to know a lot about us and our children, and always inquired as to their well-being. He became one of my patients, along with his entire extended family. During the last 2 years, as I have been able to slow down a bit at the office, I have had time to examine the investment choices he placed us in. That's when the slow burn kicked in. Here are some of upsetting decisions he made for us: (Oh yes, I know I signed on the dotted line and was given a prospectus, etc.....I take 50% responsibility for believing in the good-nature and honesty of my fellow beings).
We were sold only heavily loaded funds, all of them Class C funds (very nice for the advisor). He had us purchasing annnuities within an IRA. He advised us to invest in Executive Life here in Calif. It ended up being a scandal and we lost the entire $100,000. Many of the funds were in the Putnam family, purchased at the time they were under investigation for inappropriate practices. Well, that's just part of it. We fired our FP! The good news is that we are FREE. Our thanks to those of you who have encouraged us (through this forum) to take control of our own financial destiny. P.S. Our FP planner was furious!
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Re: Just Fired my financial planner
Old 03-07-2007, 07:53 PM   #2
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Re: Just Fired my financial planner

My guess is you were his "friend" as long as he was collecting 1% a year and transaction commissions for his wonderful advice!
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Re: Just Fired my financial planner
Old 03-07-2007, 07:58 PM   #3
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Re: Just Fired my financial planner

Wow. If I were you, I'd consider legal action against that FA.

If you're moving funds to Vanguard, I'm not sure why you'd consider an ETF. Just pick one of their tax-efficient funds, like Total Stock Market.

Here's Gus Sauter on the ETF tax efficiency debate:

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Re: Just Fired my financial planner
Old 03-07-2007, 08:11 PM   #4
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Re: Just Fired my financial planner

Yeah!

Jeff - Good for you!

Losing money w/the recent market(less last week)is unexceptable. You should ask for a full spreadsheet of how that happened....including commisions/loads etc. It would be interesting...please share!

Good luck - you are in a better place,

Donzo
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Re: Just Fired my financial planner
Old 03-07-2007, 08:11 PM   #5
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Re: Just Fired my financial planner

wow, i am so sorry about your whole fc fiasco. what an evil #@$#@%@. good luck on your new path.
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Re: Just Fired my financial planner
Old 03-08-2007, 01:40 PM   #6
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Re: Just Fired my financial planner

Quote:
Originally Posted by Jeff55
So much for being a "friend".
With friends like him, who needs enemies??
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Re: Just Fired my financial planner
Old 03-08-2007, 02:03 PM   #7
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Re: Just Fired my financial planner

Wow, Jeff, that is terrible! All totally reprehensible investments he put you in! What a jerk!

You know, it is funny, I work for a retired dentist who started a wealth consulting practice back in the 80s because he was so tired of him and his friends getting ripped off. There are quite a few dentist CFPs out there because of him, as he always preached to the dentists that they know their own investments and take care of their own house, so to speak. He still lectures at dental meetings (sharp as a tack at 70+), still hoping folks out there will watch out for the inevitable sharpies looking to fleece you guys.

I've heard a lot of horror stories, from him and other dentists--congratulations on getting rid of him and taking control of your own finances!

Sarah
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Re: Just Fired my financial planner
Old 03-09-2007, 05:42 PM   #8
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Re: Just Fired my financial planner

you know i think that you could probably sue this financial advisor. please at least file a complaint and keep us updated.
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Re: Just Fired my financial planner
Old 03-09-2007, 08:23 PM   #9
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Re: Just Fired my financial planner

Hey Jeff, IMHO just take your money and move on. You'll be glad you did. You can lose a little battle but in the long run you'll win the war. Your free!
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Re: Just Fired my financial planner
Old 03-10-2007, 09:40 AM   #10
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Re: Just Fired my financial planner

Sorry to hear your former fiend took the loss hard. The loss of the commissions/fees that is .



And yes... you got it right I did not misspell "Friend".
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Re: You won't believe this! (or maybe you will)
Old 03-10-2007, 05:47 PM   #11
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Re: You won't believe this! (or maybe you will)

If he is still one of your patients, I could see where he might be in need of a couple good ol' root canals, and maybe a wisdom tooth extraction (or two)!!!

(just kidding.....or am I?!)
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Re: You won't believe this! (or maybe you will)
Old 03-11-2007, 03:09 AM   #12
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Re: You won't believe this! (or maybe you will)

I agree, move on...

My sister was in a bad fund from ING at work... and I have tried talking her to moving it (I don't know if she has yet).. but, it was costing her 1.25%...

Her thought... well, he came by one day and talked me into saving.. I just signed up with his recommendations... BUT, if he had not come by I would NOT have signed up for the 403(b) and not that money saved... so, she looked at it from the other side...

Now that she is getting more informed, she is looking at saving some fees... but not looking back at her past decisions.. and the funds he picked were not that bad... just high fees...
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Re: You won't believe this! (or maybe you will)
Old 03-11-2007, 10:11 AM   #13
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Re: You won't believe this! (or maybe you will)

Quote:
Originally Posted by Texas Proud
Her thought... well, he came by one day and talked me into saving.. I just signed up with his recommendations... BUT, if he had not come by I would NOT have signed up for the 403(b) and not that money saved... so, she looked at it from the other side...
IMO a good way to look at this. Sometimes the perfect can be an enemy of the good.

Ha
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Re: You won't believe this! (or maybe you will)
Old 03-11-2007, 10:26 AM   #14
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Re: You won't believe this! (or maybe you will)

Jeff55,
I'd recommend you at least file a complaint. A lawsuit is probably more trouble than it is worth, though I wouldn't rule it out entirely.

TexasProud,
The experience of your sis reminds me of those parasites from USPA/IRA or "First Command" (or whatever name they are using today). They specialize in targeting military members, and sign them up for "contract plans" whereby the first year commissions are 50%. It is unconscionable, and recent court action has caused them to change their approach, I believe. Still, their aggressive recruiting does result in a lot of servicemembers learning about the advantages of saving and getting into the habit of doing so, which is a big deal. On balance, though I think they are snakes, there is at least some benefit to their activities for some folks, especially if the victims see the light early enough..
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