|
Posted by Don on March 9, 2007, 6:32 pm
> My financial planner who I don't pay directly keeps on moving my
> investments around from one broker to another and everytime he does so
> costs me fees coming out of old funds and into new.
>
> What gives with this?
If this were happening to me, I would leave that planner immediately without
further discussion. It is possible to dredge up all sorts of convoluted
explanations as to why this could be legitimate activity on his part, but
the chances of it being purely and simply for commission-generating are so
much greater, that I would not bother to search for the truth, but would
find another advisor pronto.
|
|
Posted by Charlie on March 10, 2007, 8:39 am
You got it!! The planner is stealing from you this way. It does not
violate anything that will get him fined or in jail. If you ask he can
justify it. Fire him. Get another planner or if possible manage your
money yourself. DIYS is not really hard and the learning curve at worst
is not likely to cost a tenth of what is being swindled from you. What
you can learn in 15 minutes a week about investing will make you wonder
why anyone would let a third party mess with their money. Start with
stuff like Google Searches for basic terms like "stock investing" and
"discount broker". Amazing what can be found with little or no effort
and no idea of where you are headed. Cheers!!!!!!!!!
>
>> My financial planner ** keeps on moving my
>> investments ** from one broker to another and everytime he does so
>> costs me fees **.
>>
>> What gives with this?
>
|
|
Posted by Don on March 10, 2007, 12:51 pm
Get another planner or if possible manage your
> money yourself. DIYS is not really hard and the learning curve at worst
> is not likely to cost a tenth of what is being swindled from you.
Indeed, taking a little time learning how to manage your own money is the
best plan. There is just too much danger in searching for someone else to do
it for you. Certainly there are honest advisors who can do a good job. But,
for a newcomer, finding an honest one and avoiding the dishonest ones is
like shaking dice. You have to learn something about finance and how
products are sold to make it better than a chance affair, so you might as
well learn some more and do it yourself.
|
|
Posted by Andrew Koenig on March 10, 2007, 2:26 pm
> You got it!! The planner is stealing from you this way.
Here's another way to look at it: If you pay your planner to execute
trades, what you'll get is a plan that executes as many trades as the
planner can plausibly get away with--even if the planner tries to be honest
about it. You get what you measure. So you should be looking for a planner
whose only interest is in doing what's good for you.
Here's an article that puts it in perspective:
http://www.fundadvice.com/fehtml/investingbasics/what_kind_of_adv.html
Disclaimer: The article cited above is written by a financial advisor,
partly in the hope that people will read it and become his clients.
However, the article does not specifically advertise his services. I am not
his client, and have no financial connection with him. I am recommending
the article because I think it's relevant and sensible, and because I think
his website is a useful source of free advice.
|
|
Posted by on March 11, 2007, 3:33 pm
> My financial planner who I don't pay directly keeps on moving my
> investments around from one broker to another and everytime he does so
> costs me fees coming out of old funds and into new.
>
> What gives with this?
>
> B
I have only one question. Is your planner making you tons of money
doing what he is doing?
If not, find someone else.
PaulM
|
| Similar Threads | Posted | | Moving money out of the US into Canada | June 17, 2007, 8:01 pm |
| Moving Roth money from m-market into mutual funds | February 15, 2008, 3:45 pm |
| So I got a financial planner now but one question...... | October 6, 2006, 7:08 pm |
| Financial Planner didn't warn us of LT Capital Gains | May 20, 2008, 5:07 am |
| Pitfalls to avoid when chosing a financial advisor/planner | April 9, 2007, 12:25 pm |
| Money Markets and the Current Financial Crisis | July 15, 2008, 12:05 pm |
| Moving IRA from stock to bond funds? | April 20, 2007, 3:34 pm |
| first time appt with planner | April 3, 2007, 2:31 pm |
| PROPOSAL FOR MY MOM FROM PLANNER - REASONABLE? | September 14, 2008, 4:53 pm |
| Where to put money | March 8, 2007, 12:54 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap