Comments on: Question of the Day – Brokers http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Thu, 24 May 2012 12:43:16 +0000 hourly 1 http://wordpress.org/?v= By: Terry cade http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/comment-page-1/#comment-42903 Terry cade Thu, 09 Nov 2006 04:40:55 +0000 http://allthingsfinancialblog.com/?p=1305#comment-42903 The reader is uninformed. 4 % verses 4.5% doesn't take in consideration the internal cost which is higher on others shares vs. A shares. Writer shows his lack of sav. In respect to the trips, my rep is rewarded for diversifying my port not for the amount of funds he sells. You should look into the facts further. Except for its clients, I don't think Edward Jones explained this so I agree with Mr. Weddle's quote. All the real fact were not exposed in the press because Jones was censored by regulators (govt). The reader is uninformed. 4 % verses 4.5% doesn’t take in consideration the internal cost which is higher on others shares vs. A shares. Writer shows his lack of sav. In respect to the trips, my rep is rewarded for diversifying my port not for the amount of funds he sells. You should look into the facts further. Except for its clients, I don’t think Edward Jones explained this so I agree with Mr. Weddle’s quote. All the real fact were not exposed in the press because Jones was censored by regulators (govt).

]]> By: Duane Gran http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/comment-page-1/#comment-39160 Duane Gran Fri, 03 Nov 2006 14:04:14 +0000 http://allthingsfinancialblog.com/?p=1305#comment-39160 If the broker is affiliated with a registered investment advisor firm you can request their ADV-II form. This discloses how the firm is compensated for services. Should you reflexively decline investments which profit the broker? It depends. While the situation smells like a conflict of interest it is entirely possible that the investment is profitable for all concerned. I would look at the numbers and make sure that the recommendation seems sound. If the recommendation puts a disproportionate amount of the portfolio into said fund I would become suspicious. If the broker is affiliated with a registered investment advisor firm you can request their ADV-II form. This discloses how the firm is compensated for services.

Should you reflexively decline investments which profit the broker? It depends. While the situation smells like a conflict of interest it is entirely possible that the investment is profitable for all concerned. I would look at the numbers and make sure that the recommendation seems sound. If the recommendation puts a disproportionate amount of the portfolio into said fund I would become suspicious.

]]> By: Free Money Finance http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/comment-page-1/#comment-39042 Free Money Finance Fri, 03 Nov 2006 11:20:49 +0000 http://allthingsfinancialblog.com/?p=1305#comment-39042 <strong>Star Money Articles for the Week of Oct. 30</strong> Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: MightyBargainHunter details a slick ATM trick. Five Cent Nickel did an economic analysis of Halloween. Blueprint for Financial Prosperity suggests you always ti... Star Money Articles for the Week of Oct. 30

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: MightyBargainHunter details a slick ATM trick. Five Cent Nickel did an economic analysis of Halloween. Blueprint for Financial Prosperity suggests you always ti…

]]> By: Jonathan http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/comment-page-1/#comment-38127 Jonathan Wed, 01 Nov 2006 07:10:56 +0000 http://allthingsfinancialblog.com/?p=1305#comment-38127 It's a tough question as I'd first have to put myself in the shoes of a person who would trust another person to handle my money. My first response would be that I would analyze the mutual fund myself, asset class, expense ratio, etc. But someone who hires a person at Edward Jones most likely wouldn't do that. I've been getting a lot of Ameriprise advisors on my blog posting about how "hey, we're better than nothing and we're helping the people we work with". Perhaps true. But "better than nothing" is a far cry from striving to be the best and without conflicts of interest. It’s a tough question as I’d first have to put myself in the shoes of a person who would trust another person to handle my money.

My first response would be that I would analyze the mutual fund myself, asset class, expense ratio, etc. But someone who hires a person at Edward Jones most likely wouldn’t do that.

I’ve been getting a lot of Ameriprise advisors on my blog posting about how “hey, we’re better than nothing and we’re helping the people we work with”.

Perhaps true. But “better than nothing” is a far cry from striving to be the best and without conflicts of interest.

]]> By: Foobarista http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/comment-page-1/#comment-38033 Foobarista Wed, 01 Nov 2006 00:15:09 +0000 http://allthingsfinancialblog.com/?p=1305#comment-38033 I guess "their side of things" is "a guy/gal's gotta eat". But the problem is that the customer may think they're getting something free when they're paying for filet mignon at the country club. This is also a wierd, fundamental issue with lots of people in traditionally "high trust" professions; they often don't understand that people won't just take their word that they aren't being ripped off. And the trust issue works better, not worse, when all the cards are on the table. I guess “their side of things” is “a guy/gal’s gotta eat”. But the problem is that the customer may think they’re getting something free when they’re paying for filet mignon at the country club.

This is also a wierd, fundamental issue with lots of people in traditionally “high trust” professions; they often don’t understand that people won’t just take their word that they aren’t being ripped off. And the trust issue works better, not worse, when all the cards are on the table.

]]> By: Tim http://allfinancialmatters.com/2006/10/31/question-of-the-day-brokers/comment-page-1/#comment-37951 Tim Tue, 31 Oct 2006 18:12:06 +0000 http://allthingsfinancialblog.com/?p=1305#comment-37951 No, I wouldn't purchase the suggested mutual fund. But I wouldn't be likely to purchase a mutual fund anyway. When has a corporation ever admitted guilt or accepted responsibility for their actions? They always maintain their innocence despite clear guilt just like people do - Ken Lay and Jeff Skilling come to mind. No, I wouldn’t purchase the suggested mutual fund. But I wouldn’t be likely to purchase a mutual fund anyway. When has a corporation ever admitted guilt or accepted responsibility for their actions? They always maintain their innocence despite clear guilt just like people do – Ken Lay and Jeff Skilling come to mind.

]]>