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Credit Union Investment Advisors Want Me
Old 05-02-2012, 11:07 AM   #1
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Credit Union Investment Advisors Want Me

I have about $170k in CD's at my credit union. Sometimes when I call up to renew a CD, at a nauseatingly low rate, like 1.75%, they ask me if I want to have an "investment advisor" call me about other options which would give me a better return on my money. Since I am salesmanphobic, I say no thanks. What sort of investments would they try to steer me into? Mutual funds? Annuities? As my disgust with low rates increases I may call them up, but I want to know what to expect first. Thanks for any input !
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Old 05-02-2012, 11:15 AM   #2
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Sarcastic reply: they will steer you to whatever yields them the highest commission. In most cases, whatever they recommend you can replicate on your own for less cost if you have the time and desire to do the research.
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Old 05-02-2012, 11:20 AM   #3
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Without knowing your personal situation, a cynic might say that anyone with $170K in CDs needs an investement advisor.
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Old 05-02-2012, 11:33 AM   #4
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Oh I am so glad it's not just me and DH.

Our credit union does the same thing--I simply tell them it's the cash portion of the portfolio and we have other investments elsewhere. Seems to do the trick for us.

The first time it happened was when I was talking to the person at the branch about something simple, and she saw the amount we had in CDs in our 2 accounts. She commented that it was alot in such a conservative investment, and did we want an advisor to contact us about investing. My thoughts at the time were that the average American probably doesn't have too much in total savings, so they probably just assume our CDs are all we have and are trying to do us a favor. Whatever, we now have a standardized response!!
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Old 05-02-2012, 11:39 AM   #5
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Originally Posted by marko View Post
Without knowing your personal situation, a cynic might say that anyone with $170K in CDs needs an investement advisor.
Why would you make that statement? I have about $300k in CD's averaging 4.5%. Is that a bad investment? Do I need an advisor also?

My reply to John Galt III would be that they will try to sell you something else such as annuties. This is usually what they push at those seminars for investment products. Something other than CD's where the advisor isn't making any money.
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Old 05-02-2012, 12:08 PM   #6
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And I would approach this problem entirely differently. Understand that customer service is seeing $170,000 as a lot of investable money.

When asked if you would like a call from a financial advisor, respond: No, but I would like the president of the credit union to call me.

Then, when he/she calls tell him/her that you feel as a member that the credit union is doing a disservice to its members by suggesting/pointing them to a financial advisor, from whom the credit union earns a referral fee. Suggest it would be better if the concerned employees ask if the member might want a referral to a fee-based certified financial planner for advice on how to increase the yield on his/her savings portfolio.

When the response is but that isn't our policy, you can also reply your policy isn't to deal with referrals from a credit union that isn't concerned with educating its members on managing their money.

(Off my soap box now).

-- Rita
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former president of the board of directors of a credit union
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Old 05-02-2012, 12:11 PM   #7
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Quote:
Originally Posted by JOHNNIE36
My reply to John Galt III would be that they will try to sell you something else such as annuties. This is usually what they push at those seminars for investment products. Something other than CD's where the advisor isn't making any money.
The bank where we do most of our banking does the same thing. They're constantly trying to set us up with their 'financial advisor' (a.k.a. annuity salesman'). Ummm...No Thanks! "IF" I wanted to talk to him, "I" would initiate the meeting. Over the years I've accompanied my elderly Mom when she's gone in to meet with him, and all he's interested in is selling annuities and life insurance.

Whenever a CD has matured he has advised her against either rolling it over or getting a new one. It's always been "put it in an annuity". Yeesh!!!
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Old 05-02-2012, 12:39 PM   #8
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Not to get onto marko about "needing" an investment advisor if you are into CD's, but I think everyone's situation dictates their course for investing. Ten years ago I was 100% into stocks with Fidelity, but time and things change. I no longer have any debt and my only goal is capital preservation. I am almost 76 and at this age one needs to keep what they have. I can live off my pension, our social security, a mortgage we hold on property and the RMD's off the CD's. So I say again, circurstances dictate your investments.
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Old 05-02-2012, 01:06 PM   #9
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Originally Posted by JOHNNIE36 View Post
Why would you make that statement? I have about $300k in CD's averaging 4.5%. Is that a bad investment? Do I need an advisor also?

.
Welll, I did qualify the statement by saying that I didn't have all the information.

Having said that, my assumption (you know what they say about when you 'assume') was that this was a CD paying very low interest.

So, I'd be interested to learn where can I get a CD paying 4.5%!!!! (again, I'd have to assume these are very long-term/old CDs...not something available recently---and likely to expire soon--- but I'm open to be enlightened!)

As another poster noted though, I'd be calling the President of the CU asking for a better rate...with enough $$, I've learned that the rate is negotiable.
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Old 05-02-2012, 01:08 PM   #10
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You can always go listen to what they say and then say "no thanks" while you go collect more information about their recommended options. As long as they are not charging you to talk with their advisers, free advice may be a learning opportunity.
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Old 05-02-2012, 01:27 PM   #11
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Originally Posted by Gotadimple View Post
And I would approach this problem entirely differently. Understand that customer service is seeing $170,000 as a lot of investable money.

When asked if you would like a call from a financial advisor, respond: No, but I would like the president of the credit union to call me.

Then, when he/she calls tell him/her that you feel as a member that the credit union is doing a disservice to its members by suggesting/pointing them to a financial advisor, from whom the credit union earns a referral fee. Suggest it would be better if the concerned employees ask if the member might want a referral to a fee-based certified financial planner for advice on how to increase the yield on his/her savings portfolio.

When the response is but that isn't our policy, you can also reply your policy isn't to deal with referrals from a credit union that isn't concerned with educating its members on managing their money.

(Off my soap box now).

-- Rita
confirmed credit union member
former president of the board of directors of a credit union
Good reply from former CU director.
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Old 05-02-2012, 01:33 PM   #12
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Originally Posted by John Galt III View Post
I have about $170k in CD's at my credit union. Sometimes when I call up to renew a CD, at a nauseatingly low rate, like 1.75%, they ask me if I want to have an "investment advisor" call me about other options which would give me a better return on my money. Since I am salesmanphobic, I say no thanks. What sort of investments would they try to steer me into? Mutual funds? Annuities? As my disgust with low rates increases I may call them up, but I want to know what to expect first. Thanks for any input !
The mega-corp where I used to work had a unit that sold through credit unions. The most popular products were mutual funds (with sales commissions). The second volume seller was deferred annuities, but the volume was small relative to mutual funds. Other products we trivial in the sales mix.

If my employer is in that CU, you'll be talking to a commission-based sales person who is supposed to follow the "culture" of that particular credit union. Some are more member-focused, soft sell. Others are more aggressive. The most member-focused CUs (maybe Gotadimple's) are too skeptical of these programs to participate.
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Old 05-02-2012, 01:44 PM   #13
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Originally Posted by marko View Post
Without knowing your personal situation, a cynic might say that anyone with $170K in CDs needs an investement advisor.
...

Unless these are CD's purchased decades ago (which I assume they were not), I would seriously look at your personal risk assessment.
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Old 05-02-2012, 02:01 PM   #14
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...

Unless these are CD's purchased decades ago (which I assume they were not), I would seriously look at your personal risk assessment.
Johnnie36 posted that he's getting 4.5% in CDs. The best I could find when CDs paid 4.43% was in 2008 on a 5 year. That means that in a year or so, he'll be SOL.

Unless there is some other insight that I'm missing....?
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Old 05-02-2012, 02:22 PM   #15
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I seriously do not understand all the self-inflicted wedgies people are giving themselves when they hear about somebody offering a product or a service. If you are not interested just say "no".

On most days that end in a "y" I am offered at least one product or service in person, through the mail, on a door hanger, on TV, on the internet, or on the phone. One can say no, throw it in the trash, change channel, get an adblocker, or hang up, then get over it.

And somebody said go talk to them because you might learn something, and that is true.
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Old 05-02-2012, 02:27 PM   #16
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The thread should read;

Credit Union Investment Advisors Want My Money !
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Old 05-02-2012, 02:44 PM   #17
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5% CDs, 10yr, PenFed CU, were available in early 2011 ... so another 8+ yrs to go!
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Old 05-02-2012, 02:50 PM   #18
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Originally Posted by JOHNNIE36 View Post
Why would you make that statement? I have about $300k in CD's averaging 4.5%. Is that a bad investment? Do I need an advisor also?
Nope; you need to be an advisor to others!

Ha
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Old 05-02-2012, 02:52 PM   #19
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Originally Posted by Gotadimple View Post
And I would approach this problem entirely differently. Understand that customer service is seeing $170,000 as a lot of investable money.

When asked if you would like a call from a financial advisor, respond: No, but I would like the president of the credit union to call me.

Then, when he/she calls tell him/her that you feel as a member that the credit union is doing a disservice to its members by suggesting/pointing them to a financial advisor, from whom the credit union earns a referral fee. Suggest it would be better if the concerned employees ask if the member might want a referral to a fee-based certified financial planner for advice on how to increase the yield on his/her savings portfolio.

When the response is but that isn't our policy, you can also reply your policy isn't to deal with referrals from a credit union that isn't concerned with educating its members on managing their money.

(Off my soap box now).

-- Rita
confirmed credit union member
former president of the board of directors of a credit union
Well said Rita!
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Old 05-02-2012, 03:19 PM   #20
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Quote:
Originally Posted by John Galt III View Post
I have about $170k in CD's at my credit union. Sometimes when I call up to renew a CD, at a nauseatingly low rate, like 1.75%, they ask me if I want to have an "investment advisor" call me about other options which would give me a better return on my money. Since I am salesmanphobic, I say no thanks. What sort of investments would they try to steer me into? Mutual funds? Annuities? As my disgust with low rates increases I may call them up, but I want to know what to expect first. Thanks for any input !
So do you turn them down on the advisor, then scream at them because they have crappy CD rates? Just wonderin'.........
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