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Old 08-03-2015, 11:18 AM   #21
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You did the right thing. Good for you.
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Old 08-03-2015, 12:16 PM   #22
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I wish that someone had pointed this out to me when I was younger. I had a dreadful time getting myself unstuck from one of those financial service companies that an employer had pushed me into. No matter what paperwork I sent them, it was never quite right and, oh, by the way, here's another bill.

I think the OP has done what he needs to do. I agree with passing along a link or two, but I would leave it at that. He might also suggest one of the Bogle books. There was a book about the financial/retirement industry that was published in 2013 that detailed the fraud, too, but the title and author's name escape me right now. Passing that along might be a little heavy-handed, anyway.

"Pound Foolish" by Helaine Olen.
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Old 08-03-2015, 12:43 PM   #23
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............. Being a slow learner, I pointed out a similar situation to a work acquaintance and his wife, who handled the investing, was furious at me. She viewed it as criticism of her.
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My bold....

Well, it kinda is isn't it
I didn't mean it as criticism, I thought they genuinely did not realize how high the fees were. Some people are like that. Oh wait, here comes one now.

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I wish that someone had pointed this out to me when I was younger. I had a dreadful time getting myself unstuck from one of those financial service companies that an employer had pushed me into. ..........
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Old 08-03-2015, 02:28 PM   #24
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Thanks for all the input so far.

I believe a part of the $85K was a rollover from another IRA. I did confirm with him that he can contribute up to $53K per year. His business is doing well, so he wants to contribute the maximum amount possible.

The firm is called "LPL Financial Holdings". I've never heard of them before. It looks to be similar to all the other high commission firms like Ameriprise, EJ, Fisher Investments, etc.

I'm thinking I will wait a week or two and see if he follows up with me to ask any questions. I did offer to interview any financial advisor they might find locally just to make sure they are going to give objective advice. Because he is self employed and doing well, he not only needs a good financial advisor, but he needs tax advice as well.
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Old 08-03-2015, 03:26 PM   #25
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Like many others I think you've done all you should and have pointed out the high fees and made him aware of a viable alternative. Perhaps point him to some books on investing.

The rest is his choice and responsibility. If he asks for more help/information that's great but I'd stop there otherwise.
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Old 08-03-2015, 03:33 PM   #26
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Like many others I think you've done all you should and have pointed out the high fees and made him aware of a viable alternative. Perhaps point him to some books on investing.
I suggested he consider reading "Investing for Dummies" because it is such an easy read for beginners. But I could tell he had absolutely no interest in reading a book about finance. He kept asking me to explain things to his wife because he did not want to get involved.

I suggested Vanguard because the wife already has an account there, and I know they will consider combined assets when determining what level of support he is eligible for.
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Old 08-03-2015, 03:35 PM   #27
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I had a good talk with my brother about some of the stuff he was in, but then he asked me. I too got him out of this stuff but at least it was a bit calmer..
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Could it be...
Old 08-03-2015, 03:48 PM   #28
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Could it be...

this outfit?

URL:Recent fine may hasten LPL Financial's shift to fee compensation
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Old 08-03-2015, 04:31 PM   #29
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I'm thinking I will wait a week or two and see if he follows up with me to ask any questions.
There might be some value in changing communication modes--verbal comms doesn't give the recipient time to read and re-read the info, it gets more emotional, and it sometimes just comes too fast. He'll be left in the position of trying to remember the points you made in the face of a polished sales onslaught from "the guy". If in your boots, I might send him an email with a synopsis of the problems with the present advisor's recommendations, then a general comment on the conflicts of interest that an advisor compensated in this way normally has. Tell him how low his fees could be, and mention the idea of finding an advisor that works by the hour to reduce his costs and (more importantly) reduce conflicts of interest.
Include some links to good discussions on this board, and maybe a few book recommendations.
Then make it clear that he can talk to you any time about it, but that you don't intend to raise the issue again on your own, since you realize this is his business and not yours, and that people are sensitive about financial issues.
Then you'll have given him a fighting chance to recognize trouble when he sees it, a path to doing things smarter, and you've left the door open for him to talk to you about it, but he doesn't need to worry that you'll keep bringing the subject up. I think that's the best you can realistically do.
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Old 08-03-2015, 05:11 PM   #30
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To think I'm mad about paying Fidelity an average 75 basis points for mutual funds. New money's going into ETF's at 15 basis points.
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Old 08-03-2015, 05:37 PM   #31
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Interesting article....

And here is a lie... it is under the photo.. fiduciaries really...
"90% of our advisers are currently licensed to provide both advisory and brokerage services to their clients and are already experienced fiduciaries for their clients.” - Mark Casady, LPL Financial CEO.
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Old 08-03-2015, 06:17 PM   #32
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We made a rule many years ago that we have stuck with. It has worked for us even though we have almost succumbed to temptation a few times (and thank goodness we did).

Never go into business with relatives or friends, never enter into any financial dealings with relatives or friends, and always deal with investment advisors, real estate agents, lawyers, etc at arms length...ie get the best you can find and don't look for a new best friend.
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Old 08-03-2015, 06:50 PM   #33
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Yikes, that's the one!

I sent him the article as an FYI. I'll see if he responds to it.

Thanks for finding that!
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Old 08-03-2015, 06:59 PM   #34
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Here's the only piece of advice I offer to people: to weigh value of advice against what that person has to gain from your taking it, and as a secondary consideration, do you have evidence they actually know what they are talking about (ie are they a successful investor?).

But by and large, confirmation bias is a persistent devil.
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Old 08-03-2015, 07:01 PM   #35
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Yikes, that's the one!

Google is my friend!
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Old 08-04-2015, 05:54 PM   #36
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As a youth, I used to "help" people. I really thought they would benefit from my financial knowledge. Unfortunately, some times they only grabbed a small bit of info and went off in the wrong direction. Other times, they only wanted validation. I was critical of them instead of agreeing that they were "Oh so smart". So, with wisdom and age, I just reply "You have a complex situation. I just don't have the time to understand all of the details". In other words, I agree with Travelover. No good deed...
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Old 08-04-2015, 06:03 PM   #37
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My niece asked me what I thought of gold a year or so ago. I told her it could either go up or go down but that I don't own any and probably never will (except as a piece of jewelry.

She went and bought some (hopefully not much) anyway. I'm sure she regrets it now.

But she did ask, otherwise I don't tend to offer advice.
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Old 08-04-2015, 06:14 PM   #38
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My cousin just called me. He read the article that wannabe found - thanks again for sending that!

The broker called him today to try and convince him to stay until next year to waive some fees, but my cousin asked him about the article and ultimately got the picture of who this guy really is. His wife set up an account with Vanguard and requested the entire amount to be rolled over. He said he would call me if they have any questions on what to invest in, but even if he doesn't, I trust Vanguard to give him advice that is less self serving than this sales guy was doing.

So I guess it seems to have worked out for now. He was very appreciative that I looked at the account and pointed out all the fees.
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Old 08-04-2015, 07:13 PM   #39
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Great news--your cousin saves a lot of dough and a shark goes hungry.
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Old 08-04-2015, 07:17 PM   #40
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Great to hear this story has had a happy ending!
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