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Thread: Fiduciaries vs. Financial Advisers vs. Used Annuity Salesmen

  1. #1

    Fiduciaries vs. Financial Advisers vs. Used Annuity Salesmen

    Ugh. This should be in the vent.

    Who else has the hardest time attempting to educate people about financial sales people vs. fee-based fiduciary financial planners? Everyone thinks they have a "financial adviser" or a "financial planer" but in reality, most people have financial sales people.

    Person A: "Oh, my financial planner at the bank put us into this great private pension annuity. It's the best!"
    Person B: "Annuity? That's an insurance policy, that's not a pension. My financial adviser at Merrill Lynch has me in the best stocks, bonds and funds, and I never have to pay any fees or commissions!"
    Me:

    And if you try to educate person A or person B, they get defensive and downright hostile. "Oh, Suzy is not a sales person, she is so nice, and always wants to help, and they are very honest down there".
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Pharma-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

    Proponent of real science.
    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.



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  3. #2
    I got kicked out of a couponing group because toothbrushes are not a capital gains item.

    But yeah. My parents have a broker that they adore, who consistently puts them in the wrong vehicle because it generates bigger commissions. But I know nothing because in their eyes I'm still 8.

  4. #3
    People are so insanely stupid about the fees they pay. The rake that people pay over their lifetime to the financial services industry will be in the hundreds of thousands if not more for the average person who saves.

    Financial advisor along with fees that mutual funds, annuities, and hedge funds get away with is the perfect refutation of the Chicago School view that people behave rationally. There is no way to justify the fees they get but the fees are hidden and spread out so people pay.

    My college roommate makes high six figures selling people this garbage. And it isn't because he is George Soros. He gave me the prospectuses to a couple of private placements which paid 8% commission. They were both huge risk, illiquid, and the returns weren't that great. One was total scam that ended up getting busted and investors got zero. Another was an oil well that people got paid back cents on the dollar.

    I got into the wrong line of work. I could rant about these scams all day long.

  5. #4
    Quote Originally Posted by Krugminator2 View Post
    I got into the wrong line of work. I could rant about these scams all day long.
    You and me both.
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Pharma-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

    Proponent of real science.
    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  6. #5
    Quote Originally Posted by angelatc View Post
    My parents have a broker that they adore, who consistently puts them in the wrong vehicle because it generates bigger commissions. But I know nothing because in their eyes I'm still 8.
    That's it. People are funny. For most, it's about emotions and relationships more than logic or financial common sense. "But we like him, and he treats us well. Really takes care of us"!
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Pharma-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

    Proponent of real science.
    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  7. #6
    Quote Originally Posted by Brian4Liberty View Post
    That's it. People are funny. For most, it's about emotions and relationships more than logic or financial common sense. "But we like him, and he treats us well. Really takes care of us"!
    And that's fine. There is value to that feeling. It's probably not tens of thousands of dollars at retirement though.
    Truth forever on the scaffold, Wrong forever on the throne,--
    Yet that scaffold sways the future, and, behind the dim unknown,
    Standeth God within the shadow, keeping watch above his own.
    ‫‬‫‬

  8. #7
    If I had to pay 1 percent or more as a fee of any kind I would never consider using it for sure , ever.

  9. #8
    Quote Originally Posted by oyarde View Post
    If I had to pay 1 percent or more as a fee of any kind I would never consider using it for sure , ever.
    It seems like I have seen you talk about buying physical commodities. As far I know, the transaction costs to buy physical gold and silver are a lot higher than 1%, plus the cost of storing them.



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  11. #9
    Quote Originally Posted by Krugminator2 View Post
    It seems like I have seen you talk about buying physical commodities. As far I know, the transaction costs to buy physical gold and silver are a lot higher than 1%, plus the cost of storing them.
    I pay no transaction , storage , shipping cost and no tax on copper , nickel , gold and silver . I do have to pay sales tax on Lead . I do pay about 1 percent tax on land. I am though , able to itemize and take deductions on the land expenditures.
    Last edited by oyarde; 08-26-2016 at 09:30 PM.

  12. #10
    Quote Originally Posted by oyarde View Post
    I pay no transaction , storage , shipping cost and no tax on copper , nickel , gold and silver . I do have to pay sales tax on Lead . I do pay about 1 percent tax on land. I am though , able to itemize and take deductions on the land expenditures.
    Okay. I just remembered this being in the news a few years ago about large the markups were on the gold dealers that advertised on talk radio. It looks like the spread for gold on Peter Schiff's site is 6%, which is obviously insane.

  13. #11
    This thread reminds me, I wonder what torchbearer is up to nowadays.



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