Comments on: Brokers May Have to Change http://www.keyfeeonly.com/brokers-may-have-to-change/ Opines on Investing, Financial Planning, Government Policy and the Media. Thu, 12 May 2011 04:35:51 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Roger http://www.keyfeeonly.com/brokers-may-have-to-change/comment-page-1/#comment-1235 Roger Thu, 16 Jul 2009 18:01:46 +0000 http://www.keyfeeonly.com/?p=2752#comment-1235 John, Once you understand that a broker’s first duty is to the firm, not the customer, everything else follows. But brokerage firms’ advertising purposefully gives the impression that brokers act in your best interests. Although there are many good stockbrokers, my impression is that they are trained to be salespeople, not financial planners. So they end up becoming asset gatherers. If their clients get a financial plan, the goal may be to sell an investment. In looking at many brokerage statements, I frequently see a collection of investments rather than a coherent portfolio. I have to wonder what the incentives were that resulted in expensive investment products being selected. Roger John,

Once you understand that a broker’s first duty is to the firm, not the customer, everything else follows. But brokerage firms’ advertising purposefully gives the impression that brokers act in your best interests.

Although there are many good stockbrokers, my impression is that they are trained to be salespeople, not financial planners. So they end up becoming asset gatherers. If their clients get a financial plan, the goal may be to sell an investment.

In looking at many brokerage statements, I frequently see a collection of investments rather than a coherent portfolio. I have to wonder what the incentives were that resulted in expensive investment products being selected.

Roger

]]> By: John D. http://www.keyfeeonly.com/brokers-may-have-to-change/comment-page-1/#comment-1234 John D. Thu, 16 Jul 2009 14:31:16 +0000 http://www.keyfeeonly.com/?p=2752#comment-1234 Roger, I think the author is kind to call these investors confused. I call them stupid! It's very simple. Anyone offering an investment product is always suspect of a conflict of interest if they claim to be an advisor. Many people just shouldn't be investing. Their unquestioning trust and greed always makes for large commissions for the "unethical advisor"....something like the story about a wolf in sheep's clothing. John D. Roger,
I think the author is kind to call these investors confused. I call them stupid! It’s very simple. Anyone offering an investment product is always suspect of a conflict of interest if they claim to be an advisor. Many people just shouldn’t be investing. Their unquestioning trust and greed always makes for large commissions for the “unethical advisor”….something like the story about a wolf in sheep’s clothing.
John D.

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