Brokers vs. Financial Planners

The borker is held to no standards at all. They might as well be working from Nigeria, but then the corruption level in Nigeria would actually go up.
 
Last edited:
LOL! Yeah, the word is fiduciary. Brokers have no obligation to the client. FPs do. Doesn't mean there aren't criminals in both areas, just that the slime trail is a bit easier to see on the broker-side.
 
The article mentions that an FP has to disclose if there is a cheaper alternative available for a similar product.

Is this true? How could anyone ever sell anything with this requirement?

Ha
 
haha said:
The article mentions that an FP has to disclose if there is a cheaper alternative available for a similar product.

Is this true? How could anyone ever sell anything with this requirement?
Click to expand...

Part of the problem is the definition of "similar product". What is "similar"? Is its definition similar to the definition used in the Wash Sale Rule? Or something else?

Plus, you'd have to argue that the FP KNEW of the existence of the cheaper alternative product. As long as the FP can maintain plausible deniability, this "requirement" would seem hard to enforce.
 
LOL! said:
The borker is held to no standards at all.
Click to expand...
Looks like a new entry for the urban dictionary!

Should "borker" describe a person, a business, a behavior, or a felony?
 
Either one, no matter what regulations may apply to them, still requires you to monitor them, right?
 
Good article and wonderful graphic of the "fox in the henhouse".
However, the artist should have show the "farmer in the lower 40" in the background. ;)
I avoid brokers and FA as a rule. Call me a snob, but if I go for advice, it's a fee-based CFP with a pre-agreed-upon written contract for deliverables and cost, or not at all.
I had dealings with 2 FAs in my greenhorn days and neither delivered as promised.
Picture the vaudeville hook...:LOL:
 
haha said:
Here is an intersting article about regulating of these two groups. It sounds as if the broker is held to a much less demanding standard.

Who Will Guard Your Nest Egg? - WSJ.com
Click to expand...

Interesting they made NO mention of the folks who have wrecked more financial lives than anyone other, the dreaded "Insurance agent with a Series 6"...posing as a Financial Advisor...........:nonono:
 
Was thinking that too, FD. Insurance salesmen--I wonder if there is a special corner of hell reserved for the worst of them? I hope so!
 
Yes. Jason Zweig's story.. and our New SEC gal trying to clean things up..
But, I remember back in the 70's, selling Insurance... All we had to do to get a series 6 or 7 license was spend a Few Hundred Bucks and to Be a Financial Planner it was I think $250 and A Open Book Test...LOL

It really was a Joke..But Most come from Insurance Backgrounds, so what does that tell you? I couldn't Morallly do that Job and got out of it..
The only way to make any money at it was Selling the top paying Commission Product, regardless if it was the best for the Client or not...and it still is that way..

And The Big Brokerage Houses Required their Brokers to sell certain Stocks over others, regardless if they are the best for the Client..

From the Charlie Sheen & M. Douglas movie ' Greed is Good'....LOL

I wonder if She will do much.... She has to watch herself and be very carefull not to step on too many toes, Set things up for herself, After Gov't job and get into the Private Sector and make real $ then..
 
Dennis said:
I wonder if She will do much.... She has to watch herself and be very carefull not to step on too many toes, Set things up for herself, After Gov't job and get into the Private Sector and make real $ then..
Click to expand...

If you're talking about Mary Shapiro, she already made her money. She got a multi-million dollar payout when she left FINRA.
 
Brokers, advisors, etc.

I have learned the hard way that you have to take the initiative and research things before you jump in to investments. Know exactly what you are investing in. I think Freebird could be right about a fee-based financial planner with a fiduciary responsibility to the client being more trustworthy. I don't know that I could consult with anybody after all the money I lost a few years back through bad advice from predatory individuals posing as financial advisors with my best interests at heart. I have one(and only one) financial sounding board: my ninety year old Aunt. She built her own retirement and quit working at age 58 and boy, is she smart. Reads all day long...WSJ, Morningstar, The Economist, online sources. You have to have an interest and put in the time. No substitute for this.
 
WhoDaresWins said:
I have learned the hard way that you have to take the initiative and research things before you jump in to investments. Know exactly what you are investing in. I think Freebird could be right about a fee-based financial planner with a fiduciary responsibility to the client being more trustworthy. I don't know that I could consult with anybody after all the money I lost a few years back through bad advice from predatory individuals posing as financial advisors with my best interests at heart. I have one(and only one) financial sounding board: my ninety year old Aunt. She built her own retirement and quit working at age 58 and boy, is she smart. Reads all day long...WSJ, Morningstar, The Economist, online sources. You have to have an interest and put in the time. No substitute for this.
Click to expand...

No that is totally not required - do not read books, study or otherwise waste your time - I did that for forty years.

Meanwhile the 60/40 balanced index plan thru my 401k ended up carrying the bulk of my retirement. All the rest added up to a pitcher of warm spit.

I did have a number of 'legend in my own mind periods'.

heh heh heh - Had I just bought the whole thing ala 'God Looks After Drunkards, Fools and The United States of America.' - I'd be posting from my villa in the Bahamas instead of greater Kansas City.

And now and now after 15 years of ER they have these one stop lifecycle funds. Better late than never. :D Yeah the weather's bad and I feel grumpy!
 
You must log in or register to reply here.

Similar threads

S
After I'm Gone
2 3
Replies
59
Views
5K
Onda
O
T
ACA costs
2 3 4
Replies
99
Views
5K
TickTock
T
sengsational
Medigap Shopping: Closing the Book & Rate Increases
2 3
Replies
71
Views
3K
CRLLS
C
E
Five Years Retired: Lessons Learned
Replies
24
Views
2K
Koolau
Koolau
Y
Am I thinking about bonds the right way?
Replies
9
Views
1K
Yipper
Y

Latest posts

Back
Top Bottom