Should I Fire my Financial Advisor

crispus,

It's time to "fish or cut bait." You are supporting his lifestyle by paying fees you don't need to pay for advice you don't need.

Depending on the size of the variable annuity, you may have bought one of those flat screen TVs for him.
 
crispus said:
You know FA's daughter is being Bat Mitzvah's in October and they wanted an upscale booklet to hand out at the party. I am a print salesman, so FA called me for a meeting to discus project at his home. I gave him the price and he said that looked great and he would get me the info in August. He called me a week later, very apologetically, to tell me he was not going to do the booklet. I guess his wife found a cheaper way to do it.

I could not help but notice his home a 1960's rancher in an established high end neighborhood. Inside was a brand new kitchen, several wall mounted flat screen TVs. We walked outside to a nicely landscaped patio with hot tub and in ground pool. It was a hot day and I felt like jumping in to the inviting crystal clear pool.

I am not a jealous person. We have learned to live well below my income and we do not have the extra money for many luxuries. I rely on my faith quite often to give me strength. But I can see that FA is doing quite well.
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After seeing your FA's house would it surprise you to know that he's also living below his means.:D Run Forrest run!
 
Dont sweat it, I live a little too far away to steal your customers.

On the other hand, theres this "internet" thing I've heard so much about... ;)
 
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?

>:D

2B's head just exploded for a second time.
 
cute fuzzy bunny said:
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?

>:D

2B's head just exploded for a second time.
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I don't sell those, so I guess I better find you an insurance agent that needs a partner............:D

BTW, VA's don't have front loads, but I digress...........:D
 
FinanceDude said:
BTW, VA's don't have front loads, but I digress...........:D
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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.
 
FinanceDude said:
Most 403Bs are invested in annutities through Nationwide, ING, TIAA-Cref and Principal. That's the reality..........:p
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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.
 
cute fuzzy bunny said:
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?

>:D

2B's head just exploded for a second time.
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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. :D
 
FinanceDude said:
Most 403Bs are invested in annutities through Nationwide, ING, TIAA-Cref and Principal. That's the reality..........:p
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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?
 
NinjaPigeon said:
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?
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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.........:p:rolleyes:
 
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..............
 
crispus said:
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.
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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.:bat:
 
Achiever51 said:
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.:bat:
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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...........:)
 
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
 
lsbcal said:
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
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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.
 
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
 
cj said:
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
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I suggested the other way because of the close relationship they had, did you socialize with your broker in your case?
 
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.
 
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