So, given the new FA, what recommendation for investments has he made?
This is where it gets interesting - I have heard horror stories about front end loaded funds, way out of whack portfolios, bond churning, etc ... and, of FAs reading their clients wrong and just sitting on CDs, or buying risky investments.
So ....what specifically is this FA doing for you?
So interesting:
Would you like to get excruciatingly specific about these "horror stories" that you have heard? Can you provide these "horror stories" in razor sharp detail? Precisely what was bought, what was sold, in what type of accounts, and on what dates and for for how much?
Can you provide names and contact information of specific investors who told you these "stories", and names and contact of specific financial professionals that they say did this to them? Come on, it's not that hard -- if you have the information. Or did you just make this up. Information, please.
If you don't have the information, your comments are just FUD -- Fear, Uncertainty, and Doubt based only on supposition, not reality (unless you can give us some concrete details). There is no reality if you cannot provide details.
As far as front-loaded funds, if you tell your rep you do not want front-loaded funds, they cannot sell you front loaded funds (unless you authorize that, which you should not). Duh!
Tell them you do not want front-loaded funds. Done. You should be getting no load institutional class funds anyway, and those have lower expense ratios. If the investor does not inform the rep that they want only no-load funds, and the rep sells a loaded fund, then that is the investor's fault for buying it. Transfer out.
Churning: tell your rep that you will not tolerate churning, or else they will see transfers out. No churning will happen. If the investor allows the rep to churn their account, then that is the investor's fault. Transfer out.
Tell them what you want and what you do not want. If you fail to tell the rep what you want and what you do not want, then whatever you get is entirely your fault.
You can also put limits on the rep's trading authority per the contract. For example, you can set a trading limit over which you must approve the trade, for example, anything over $50K, or $100K, or whatever number you specify.
See, this is not so scary, unless you want it to be scary. So be scared if you want to be scared by reading these forums. Is this so hard?
BTW there are CFP's, and there are RIA's, and there are FA's. These forums seem to focus on FA's which are probably the lowest common denominator of the three -- just about anybody even without formal education can call themselves a FA. This is kind of like loading the dice in the favor of all the critics here. (Anybody can call themselves a FA) -- and if that is the general attitude then OK. But don't try to tell me my CFP is "just" an FA.
Nobody cares, but we use a CFP who is also an RIA.