Quote:
Originally Posted by SSLance
I'm more and more convinced to do it my way, on my own though...than with my FA like I always have. He won't be happy, but I'm sure he'll get by.  |
My "take" on Financial Advisors or "brokers" etc... is this. They're trying to make a living off what you're trying to make a living off of. The only way they can make a living is to get commissions from transactions. Transaction fees eat into your dough... and fixed fees on a compounded basis can have a HUGE affect over time.
In so many words - THEY need to make a living too... how do THEY do that? They're not free... they also need to eat.. so someone is feeding them. It just isn't going to be me.
In the "old days" -- if a guy was buying tax free munis - in a fixed fee account - and the broker is getting 1 or 2 percent annually - it was okay because back then I might have been getting 8 or 9 percent tax free off them. But when the rates are under 4% and this azzwipe thinks he's going to get 1% ?!?!?!?! HELL NO!!
Now --- if they're not fixed fee -- then they make NOTHING off you unless you buy and sell. They use FEAR to get you to SELL ---- the very stuff they talked you into buying on the last call! WTF is with that? OH YEAH - it's called commission. I don't give a shizzle who you think you are - or how important of a client/friend/buddy you think you are... they have a mortgage to pay too! And when that's due - and they need to generate some income - they're calling with the next hot deal - or a reason why the thing you just bought isn't worth a **** now and you have to sell and buy something else (two commissions).
In other words - just hell no!
If you want to make money over the long run - just buy and do what I've been preaching on here - you don't need anyone to have this make sense to you. And you don't need the lion in the cage over there to feed and take care of. The only guy you have to take care of is YOU.
Trust me - you have no idea how many investment houses court me for my accounts - they take me to lunch - they invite me to seminars - and to private conference rooms with what would be "my team"... Frankly - they could offer to fly me in a private jet and I wouldn't waste my time. For my kind of account EVERYTHING is free! Yeah right -- there is no "free". Somehow somewhere they're making money off my money. Otherwise why would they do it?
What I've found is that they have a "vested interest" in themselves and when push comes to shove - their interest tops mine. No thanks! I'm really not that lame.