Just Thought I would Say Hello

[JR Andrews]

I just found this wonderful site and I must say I am very impressed.  I think its wonderful that this avenue has been provided so everyone can share their expereience and knowledge with others about investing and retirement.

A little about myself, I reside near Akron Ohio and work as a fully certified financial advisor with American Express.  I am somewhat discouraged by the stigma some posts at this site have given my profession.

As a financial advisor, I do see some of what you people have posted about "sales pitches and salesmen" when it come to financial planning.  These "advisors" are hoping that people will just assume and guess without thinking that they are qualified, and then people find out when its too late they they weren't.  I can say for a fact that these "advisors" are in my minority in terms of all the advisors out there.

For the most part and especially with myself, I have no other motiviation but to do what is best simply for the client.  Without that objective, how does my business grow, maintain, and survive; and also how do I keep clietns and furthermore get recommendations?  I only keep myself afloat if my clients are seeing returns, comfortable and knowledgable about the investments( teaching about the investemnts is they key to any good relationship), and most importantly feeling comfortable with me to ask any quesion and really tell me the true situation.

Lets face facts, money is a very personnal subject and a lot of people are not totally comfortable discussing this with just anyone.  That is why the relationship is so important.  And this relationship building should not cost you a dime.  I give all conultations free until clients make their final decision because it should cost them anything to get to know myself as well as my credentials.

The main reason I am posting this is to answer any questions you guys might have about anything and also hopefully show you guys that advisors all aren't bad people.  Don't let a few bad experiences keep you from acheiveing the retirement that everyone fully deserves.  And remember, there is nothing wrong with a little professional help along the way.

Please feel free to submit any questions or comments via this post.  Thanks and I really love the site!

 

[Cut-Throat]

For the most part and especially with myself, I have no other motiviation but to do what is best simply for the client.

Well..............kinda.

Obviously you have to make a living, and if you did not take a percentage of the clients portfolio, you could not do that. So, that in itself is not that great for the client. It is hard enough to make money with investments today with extremely low costs, let alone to pay your costs as well.

Even if you argued that your selection of investments and your market timing more than made up for your fees, that statement would not stand up to the facts. Sure you may have a few good or great years, but eventually the indexes would outperform you.

On the flip side, for those folks that do not want to learn the basics of investing, you probably provide a much better service than your local full service broker. That is, if you are as honest and as helpful as you say you are. Just don't expect to find any of those folks hanging out at this forum.

I'm not being hard on you, but anyone with less than 5 posts that even hints at a sales pitch, will be met very skeptically here.

 

[Spanky]

JR,

There will always be someone who can use your service and be benefited greatly from it. These are the people who want to do something else instead of spending time learning financial investment and management.

Spanky

 

[unclemick]

Duh?

The big secret is that nobody needs to spend much time at all in financial management period. Auto deduct to Vanguard Target Retirement or even Wellesley - don't read any stupid books or waste a lot of time - put the money in - let time do it's thing.

All else is hormonal and the socially correct/PC thingy. Good topic for social discussion.

A good bartender's advice (and cutting you off when you've had too much), A shrink to keep you happy(perhaps with anti depressants) and a financial advisor to hold your hand and keep you from doing something stupid investment wise - all have a place in this world.

P.S. With the advent of Target Retirement - Scott Burns' original Couch Potato portfolio turns out to be waay tooo much unnecessary work - stay on the couch.

 

[Spanky]

unclemick2,

Your approach is noble. Sometimes, I wonder why I spend so much time reading financial literature and news. It may be attributed to my interests in business and finance.

Spanky

 

[Nords]

The main reason I am posting this is to answer any questions you guys might have about anything

Welcome to the board, JR, and here's a question:

What percentage of your clients have you advised to invest in an asset allocation that doesn't require the service of a financial advisor? IOW, how many people have you helped set up the system and then told them to go do it on their own?

 

[wildcat]

The main reason I am posting this is to answer any questions you guys might have about anything and also hopefully show you guys that advisors all aren't bad people.

I don't recall anyone saying advisors were bad people just a bit too concerned with filling their pockets at times. Not all are alike but we have to have some financial planner jokes just as we have attorney jokes.

[quoteDon't let a few bad experiences keep you from acheiveing the retirement that everyone fully deserves.]
I think most of people that post here are very astute & savy people and buy into the idea of "I can do it on my own." Fee-based advice maybe but the deluxe package no way.

And remember, there is nothing wrong with a little professional help along the way.

I see a psychologist weekly

Just a quick question -
What kind of pressure do you have to sell the clients Amex Funds for their portfolios? My problem with many of the chains is that they push the corporate products when everyone knows damn well there are better options out there.

Oh yeah welcome to the jungle.

 

[laurence]

Nords and Wildcat have a good point, it's been shown time and time again that a good portfolio allocation can be set up, recieve automatic deposits and rebalanced every other year, and do very well. The conflict of interest for a financial advisor is that if he/she did a really good job setting the client up, he would put himself out of a job! Where I see professional advice (maybe) coming into play is understanding the best vehicles for investments (choosing roth over traditional or 401k) or understanding wrinkles in a persons life (best account for kid's college, how much life/umbrella insurance someone needs etc.).

Now what I would be interested in you posting is an example of something you've done for a client, a problem you helped solve, and investment plan you created, and your thinking behind it, and how well it worked out. That way we can tear it apart critique and ask questions. Welcome to the mad house!

 

[sailaway]

The best attorneys are not intimidated by "lawyer jokes" but have confidence in their abilities and find defenses needless.  I have found other professionals similar.

I do notice your e-mail address and honestly I felt your post and self description more an advertisement for your services rather than a defense of your profession.

Sailaway

 

[REWahoo]

A little about myself, I reside near Akron Ohio and work as a fully certified financial advisor with American Express.

Here we go again...

 

[Spanky]

I think JR is being honest and disclosing himeself - not an advertisement.

Spanky

 

[laurence]

The best attorneys are not intimidated by "lawyer jokes" but have confidence in their abilities and find defenses needless. I have found other professionals similar.

I do notice your e-mail address and honestly I felt your post and self description more an advertisement for your services rather than a defense of your profession.

Sailaway

Shhh, don't pounce too quickly, let's draw him out first!

Seriously, I have an open mind, despite the fact a co-worker of mine who is 60 years old was sold a variable annuity with a 10% withdrawal penalty that never expires with a 5% front load and 5% annual management fees. JR should be allowed to explain his methodology and could very well bring a lot of exciting discussions to the board.

 

[Brat]

Some financial advisors do a very good job. My daughter was telling me of one who works with folks who end up with stock from initial offerings. One of the sell flags for them is when the CFO leaves "for personal reasons". There were other flags, but that was the one that hit me the hardest. Ignore the CEO, watch the eyes, and the feet, of the CFO!

 

[Mr._johngalt]

Shhh, don't pounce too quickly, let's draw him out first! 

Seriously, I have an open mind, despite the fact a co-worker of mine who is 60 years old was sold a variable annuity with a 10% withdrawal penalty that never expires with a 5% front load and 5% annual management fees.  JR should be allowed to explain his methodology and could very well bring a lot of exciting discussions to the board. 

Yikes!

 

[BUM]

JR,

Welcome. Hope you don't feel like the bastard at the family reunion. If you can suffer the slings and arrows your advice, if offered could be a valuable addition to the board.

Kinda like me standing in the plumbing aisle at Home Depot, puzzling over a problem. Hey, here comes a pro! Let me ask him maybe I'll get some good brain-pickins'...maybe not.


BUM

 

[Mr._johngalt]

JR,

Welcome. Hope you don't feel like the bastard at the family reunion. If you can suffer the slings and arrows your advice, if offered could be a valuable addition to the board.

Kinda like me standing in the plumbing aisle at Home Depot, puzzling over a problem. Hey, here comes a pro! Let me ask him maybe I'll get some good brain-pickins'...maybe not.


BUM

Yeah, those pesky "slings and arrows". So far, I've been
folded, spindled and perforated many times. DW doesn't even bitch when I stand
in front of the tv. She can see right through me

JG

 

[retire@40]

A little about myself, I reside near Akron Ohio and work as a fully certified financial advisor with American Express.

Just wondering if as an American Express financial advisor you only sell American Express products.  If I were your customer, could I elect to stay strictly with Vanguard products?

 

[unclemick]

Two things:

1. 1992 - I shared a small office in the lab with a newly minted engineer who's American Express financial advisor was a high school/college buddy. This being New Orleans, him being single - primary pursuits were girls, golf, cars and sports - NOT investments.

2. I've said(old forum) - the price of my education in investing(school of hard knocks) - could be compared to that of a financial advisor.

Being a grumpy(curmudgeon wannabe) old phart with the benefit of hindsight - I shall continue to razz financial advisors.

However - in case 1 above, starting early, however inelagently, is way, way better than starting later - or not at all.

 

[wildcat]

Just wondering if as an American Express financial advisor you only sell American Express products.  If I were your customer, could I elect to stay strictly with Vanguard products?

My question exactly.  I know some of the chains only push their products and most are inferior when compared to Vanguard.

http://americanexpress.marketwatch....dscreener-factsheet.asp?symb=ISIAX&sid=167881

Stats on Amex funds -
Offers 2 index funds, both small cap A&B.  A charges a 5.75% load, a .25% 12b-1 fee, & a .91% expense ratio to do nothing other than mirror the market.  B is no-load but charges 1.0% 12b-1 and a 1.67% expense ratio.  Sounds like a deal.

All of the other funds are active & armed with high expenses/loads & offer avg to below avg returns.  

 

[TromboneAl]

Hi JR,

If you're still here, here's a question that I'm asking in all seriousness:

Do you honestly believe that funds with 5% (or higher) loads with high expense ratios are better than similar no-load funds?

 

[cute fuzzy bunny]

They are for the fund company and the fund manager.

I suppose financial analysts are good for people with a lot of money, a determination to not read one book, a deep lack of understanding about finance and investments, and an unwillingness to buy a target retirement or lifestrategy fund after spending 2 minutes doing a risk-return quiz on vanguard.

I havent seen any that didnt cater to the very, very rich that didnt pretty much do the latter...ask you lots and lots of questions to scare the crap out of you about how complicated the financial world is, during the course of that interrogation figure out your risk-return balance and slot you into one of 5-10 standard portfolio arrangements.

Sort of a funny short story. My wife and I went shopping a while back and I left her at a bench enjoying the sun while I went into the mens room to change the baby. When I came out there was a couple chatting with her. Wife said she just stopped by and started chatting, my wife was starting to wonder if she was hitting on her when she said she'd seen the baby and was expecting herself...other guy was a co-worker of hers who saw her and also stopped to talk.

When I came out, we all started chatting, but it felt a little structured and uncomfortable. She asked what I did for a living, I mentioned I retired early, she asked who managed my money, I said I did, she said she was a financial planner.

I actually, involuntarily, said "eeeek!" really, really loudly. She laughed, said she got that all the time.

I'm figuring she and her co-worker went to the fru-fru shopping area we were in late in the afternoons to 'hit' on couples shopping at that time of the day during the work-week. Chances are they're well-to-do if they dont have to be at work at 3pm and they're shopping at that sort of store. I thought I was being unnecessarily cynical until I noticed the guy take the 'next round' with a couple who had settled into the nearby food court with a bunch of shopping bags.

By the way, to avoid puncturing my LBYM status with this sort of shopping experience, we were only there because one particular store always has a clearance on some sort of special super soft socks my wife just loves for her 12 hour nursing shifts at the hospital...

 

[wildcat]

Hmmm judging by the lack of a response is it safe to say that was a sales call?

 

[retire@40]

Hmmm judging by the lack of a response is it safe to say that was a sales call?

Yup.  They must be amateurs at American Express Financial Services if that’s the best they can do here.  They sound like the "H & R Block" of the financial industry based on this website http://www.amexsux.com/

 

[JR Andrews]

Sorry about the delay in response-been a busy week. I am going to try and respond to all comments but forgive me if I overlook a few.

I do not sell only American Express products. I have the freedom to go to any fund or company that I feel is best for the client. I am never going to say that only our products will help people achieve their goals because its not true. Sometimes people need a variation.

I do get compensted partially through commission but that does not mean that i dont recommend no load funds or that I would choose commision over suitability for a client. I do charge a fee for my service and offer a money back guarantee if unsatiified( by the way-never had anyone use it).

What it comes down to is nobody works for free and its understood that I will charge fees but I do not kill my client's returns or objectives simply to make more money. If I did I would be out a job quick.

I really enjoy the reponse so please lets keep em up!

 

[wildcat]

So how much of what you do can be done by an individual?