Lisa99
Thinks s/he gets paid by the post
- Joined
- Aug 5, 2010
- Messages
- 1,440
Buffet is my idol. And if your FA could do what Buffet does he wouldn't be working for Ameriprise he'd be starting his own firm like Warren did when he was in his 20s
You'll be ok. As you do these comparisons of performance, it is a moving target. If you had unlimited time and all of the transactions for Ameriprise account, 401(k), and compared to a baseline of S&P500 or similar, you'd have the same problem in front of you: What next? It sounds like you're moving forward, and I wish you well with self-management.And in his defense, he's averaged 14%. I had omitted one account and some reserve cash in my previous estimate. Still almost 7% worse than my unmanaged 401k.
Picking one index is a poor comparison with an actively managed account. You really need to look at blended index portfolios.You'll be ok. As you do these comparisons of performance, it is a moving target. If you had unlimited time and all of the transactions for Ameriprise account, 401(k), and compared to a baseline of S&P500 or similar, you'd have the same problem in front of you: What next? It sounds like you're moving forward, and I wish you well with self-management.
1) If the broker gets compensated based only gains, then he would definitely have an incentive to take very aggressive bets. Hey, the worst that can happen (on that particular account) is that he makes nothing (while the customer loses a big %age of his money), and if he "wins", he gets a big payoff. Not well aligned with the customer's interests, IMO. I think it may also be improper/illegal.
I agree. Instead of writing "S&P500 or similar," I could have written, "S&P500 or whatever." But in discussing these types of successes, I think it is more common to hear, "but you could have put it all in Wellesley or S&P500 and done better."Picking one index is a poor comparison with an actively managed account. You really need to look at blended index portfolios.
Trying to compare specific indexes with individual mutual funds are more difficult. A fund that calls itself "large cap" might have migrated into significant mid and small cap holdings.
Why would that be? Solely because of the incentive to make "aggressive bets"? In my mind, it seems a more fair arrangement (performance based) than a flat fee or loads would be.
Yes, but I think that's enough. For example, let's say the FA gets nothing if the account breaks even or loses money, but 10% of gains. There are two FA's with this arrangement: Paul Prudent and George Grandslam. They both have 10 clients with $1 million each.Solely because of the incentive to make "aggressive bets"?
Why do you have to roll the inherited IRA into an annuity? Usually it can be rolled into a beneficiary IRA - and if the person you inherited from was over 70.5 (taking RMDs), you start taking RMDs on your own record.
You can roll the inherited IRA, aka beneficiary IRA to another brokerage. I did this with an IRA I inherited from my father.
There's no law, that I know of, that requires you to convert the inherited IRA to an annuity. I would ask long and hard questions about this.
Also, insurance companies have something to say about doctors' fees. In the FA business fees vary widely. So the marketplace for medical and financial is not the same, I'd say.Snidely, when you go to a doctor, do you pay only if you get cured, or do you pay to be treated?
Thrivent Financial and Ameriprise Financial are far more alike than they are different, both big financial services firms with headquarters just a block from each other in downtown Minneapolis.
Both manage money and sell financial products like annuities through a network of representatives.
There are big differences, of course. Thrivent is organized for the benefit of its members. Ameriprise’s stock trades on the New York Stock Exchange. But there’s maybe no difference quite as striking as this:
The top job at Ameriprise pays 25 times more than the top job at Thrivent.
A well-intentioned communications staff member at Ameriprise pointed out that the company’s large size really distorts such comparison, as Ameriprise is ranked 263 on the latest Fortune 500 list.
Yes, but Thrivent is ranked at 325, not that far down.
Brad Hewitt, Thrivent Financial’s CEO, made $3.55 million in salary and incentive pay in 2012.
Brad Hewitt, Thrivent Financial’s CEO, made $3.55 million in salary and incentive pay in 2012.
“Oh,” he said.
The CEO’s total compensation was cut to $20.7 million from $24.5 million, driven by a decrease in non-equity incentive plan compensation, the Minneapolis-based firm said Friday in a regulatory filing. Awards were also lowered for Chief Financial Officer Walter Berman, Global Chief Investment Officer Colin Moore and William Truscott, the CEO of global asset management.
Asset managers have come under pressure as some clients withdrew funds, and volatile market swings hurt investment results. Ameriprise faced outflows at its Acorn Fund over the past year, and the company also exited a travel insurance venture in 2015 after it failed to meet profitability targets.
“Total direct compensation for each of our named executive officers was lower in 2015 based on company performance,” Ameriprise said in the filing, which labeled 2015’s results as “solid” compared with the description of “excellent” in the comparable document a year earlier.
Ameriprise slumped 20 percent in New York trading in 2015, the worst drop since 2008. The stock had more than doubled in value in the three years through 2014.