Should I Fire my Financial Advisor

[cute fuzzy bunny]

Quote:

Originally Posted by FinanceDude BTW, VA's don't have front loads, but I digress...........

Mine does. Cuz its extra special and never goes down. Principal and gains are always protected.

This plan even comes with a set of blackout glasses you can put on during those down market days, so that in the unlikely event of a loss of cabin pressure, you can put them on and not see anything bad happen.

[2B]

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Originally Posted by FinanceDude Most 403Bs are invested in annutities through Nationwide, ING, TIAA-Cref and Principal. That's the reality..........

I don't know about the rest of the US but the Texas State Teacher's Association gets "contributions" from the insurance companies put on the approved list for 403b "investments." I told my wife not to bother signing up for that trash. I've heard there is a way to bypass the approved list and go with Vanguard. I also heard it was a lot of paper work. The small amount my wife would have contributed was just saved after tax.

[2B]

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Originally Posted by cute fuzzy bunny Alright then, how about I split the commissions with you from all the rubes good customers that I sell 5% front load, 1.75% ER mutual funds in a variable annuity inside an IRA to? 2B's head just exploded for a second time.

Naw, I know you're just kidding. You have a higher level of ethics than to sell people junk like that. If you needed the money, you'd be a pimp instead.

[NinjaPigeon]

Quote:

Originally Posted by FinanceDude Most 403Bs are invested in annutities through Nationwide, ING, TIAA-Cref and Principal. That's the reality..........

How do you know if they are actually annuities? I know Nationwide doesn't show your money as being in shares in your account, but rather in "units". Those units seem to have a strange relationship to actual shares of the underlying funds they supposedly are part of.

Sometimes they are worth more, sometimes less, and it's not consistent from one of the "funds" to the next.

Does this mean it's an annuity? The way they describe it to customers is that Nationwide owns large blocks of shares in the funds they offer, and they simply break you off pieces of their shares rather than buying more shares in small increments on the open market.

Is this FUD?

[FinanceDude]

Quote:

Originally Posted by NinjaPigeon How do you know if they are actually annuities? I know Nationwide doesn't show your money as being in shares in your account, but rather in "units". Those units seem to have a strange relationship to actual shares of the underlying funds they supposedly are part of. Sometimes they are worth more, sometimes less, and it's not consistent from one of the "funds" to the next. Does this mean it's an annuity? The way they describe it to customers is that Nationwide owns large blocks of shares in the funds they offer, and they simply break you off pieces of their shares rather than buying more shares in small increments on the open market. Is this FUD?

Anytime you see the word "units", it's about 99.99% likely it's an annuity..................

Interesting that crooks like Principal Financial Group are the largest 401K and 403B providers in the US, and are represented by a bunch of folks that are only glorified insurance agents.........

[jazz4cash]

At megacorp, our Fidelity 401k always had a "unitized" fund for the company stock, but the rest was mostly Fidelity mutual funds. Now they have re-rolled the whole plan and most of the choices are labeled "co-mingled pool-not a mutual fund that mirror some known fund or index, which I think means they don't have all the regulations (and compliance cost) to qualify as a mutual fund........and guess who benefits from the savings..............

[Achiever51]

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Originally Posted by crispus I like my FA and I think he is trying to make me money, .... I did not have the heart to tell him that I was looking to dump him. I will have to work on that.

Crispus --
No offense intended, but I think you're looking at your FA as your friend rather than as a member of your professional financial advisory team. Just think about it -- was he worried about you when he called to decline your printing services for his daughter's party?

The sums of $$ you're talking about represent your future, your retirement, your security. I'd forget all the talk about his crystal clear pool, his newly remodeled kitchen and his feelings...BOOT HIM TO THE CURB, BEFORE YOU LOSE ANOTHER DIME!

But that's just my two cents, FWIW.

[FinanceDude]

Quote:

Originally Posted by Achiever51 Crispus -- No offense intended, but I think you're looking at your FA as your friend rather than as a member of your professional financial advisory team. Just think about it -- was he worried about you when he called to decline your printing services for his daughter's party? The sums of $$ you're talking about represent your future, your retirement, your security. I'd forget all the talk about his crystal clear pool, his newly remodeled kitchen and his feelings...BOOT HIM TO THE CURB, BEFORE YOU LOSE ANOTHER DIME! But that's just my two cents, FWIW.

As an advisor, I'll offer my 2 cents. here's the way to make it easy:

You: I want to talk to you about my account.

Advisor: What's up?

You: I decided I want to take over my investment accounts and handle them myself. It has nothing to do with what you did or didn't do, I want to take responsibility for my own future,and the best way to do that is for me to manage things myself.

Advisor: (probably)You're making a mistake, I think. If you are unhappy with how things are going, we can make some changes and see how it goes. I'd hate to lost you as a client, and more importantly as a friend.

You: I understand that, and have learned a lot about investing from you (white lie, maybe), but I want to take control of things and try it myself. You can apreciate that, right? Anyway, that's my decision, and I trust you will make sure that things go smoothly when I transfer my accounts right?

Advisor: Um ok.........

Bottom line: Despite what most think on this board, FA's are people too...........

[Lsbcal]

FinaceDude, sounds like a very good way to end it with a minimum of pain on both sides. Now how should the money change hands? Does the customer request transfer directly to Vanguard (or Fidelity, etc.) ? I know for brokerage accounts one just fills out the required forms at Vanguard and it all happens automatically.

Les

[FinanceDude]

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Originally Posted by lsbcal FinaceDude, sounds like a very good way to end it with a minimum of pain on both sides. Now how should the money change hands? Does the customer request transfer directly to Vanguard (or Fidelity, etc.) ? I know for brokerage accounts one just fills out the required forms at Vanguard and it all happens automatically. Les

Call Fidelity or Vanguard, and ask them for the forms. If there are stocks in there, you need to open a brokerage account with them. It can be done over the phone or on the Internet. Sign the transfer forms, and submit them to the FA. The accounts should transfer in a couple weeks.

I've never stood in the way of a client that wants to go their own way. It's better than fighting over what was done, wasn't done, etc. Sometimes they come back, sometimes they don't.

[cj]

I ended a relationship with a FA - I went to the receiving fund company, filled out all the forms, and they went out & got the money, transferring the funds and stocks to their brokerage. I only told my FA after I had initiated the transfer, because I was also chicken. I knew he'd try to talk me out of it, and I'm not good at those kinds of debates. I didn't have any problems at all doing it that way.

CJ

[FinanceDude]

Quote:

Originally Posted by cj I ended a relationship with a FA - I went to the receiving fund company, filled out all the forms, and they went out & got the money, transferring the funds and stocks to their brokerage. I only told my FA after I had initiated the transfer, because I was also chicken. I knew he'd try to talk me out of it, and I'm not good at those kinds of debates. I didn't have any problems at all doing it that way. CJ

I suggested the other way because of the close relationship they had, did you socialize with your broker in your case?

[cute fuzzy bunny]

Teen Advice Information Sheet About Breaking Up

[FinanceDude]

Quote:

Originally Posted by cute fuzzy bunny Teen Advice Information Sheet About Breaking Up

[kcowan]

I had to wean MIL from her FA after 12 years. We drafted up the termination letter, then went in to open the new discount brokerage account. Then mailed the letter. Then followed up with a phone call. I placed the call but MIL did the talking. Very much the same tone as already discussed.
- it's been great knowing you and your services
- my strategy (fixed income) is not going to change
- SIL has offered to do it for me free (token fee)
- he also will do income taxes (was outsourced)

Annual savings: 88%

FA used to send over plants and chocolates, and take her to lunch once a year. Now we do all that for her too.

[cj]

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Originally Posted by FinanceDude I suggested the other way because of the close relationship they had, did you socialize with your broker in your case?

We didn't socialize, but he did go to our church.

[FinanceDude]

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Originally Posted by cj We didn't socialize, but he did go to our church.

BIG DIFFERENCE..........

[Lsbcal]

Maybe FinanceDude can tell us why anyone should mix socializing or church with money matters. Seems to me they are distinctly and inheritantly different activities. Mixing socializing/friendship/religion with money is a BAD idea in my opinion. Would like to hear a counter argument though , , .

If you think differently then I'll be your friend for some money . Sounds like a great Dilbert series to me.

Les

[Nords]

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Originally Posted by lsbcal Maybe FinanceDude can tell us why anyone should mix socializing or church with money matters.

Because that's where all the suckers customers are.

How many times have we read a financial disaster article that started with "Mr. Edward Jones was an upstanding financial advisor and a pillar of the community's local church, where he..." ?

[windsurf]

Amen, brother. Can you spare a dime? (or tell me your net worth and explain why you don't have all that in these annuities- or limited partnership shares- I can show you).