Comments on: The 5 Star Wealth Manager Scam

By: Bryan Binkholder

Bryan Binkholder — Wed, 23 Nov 2011 02:10:19 +0000

Hey Zach thanks for the comment. If you review my videos you’ll find THEIR OLD system prior to me distributing the facts
stated they had ‘statistical research by an outside firm QMI’ and that CLIENTS nominated advisors. I called this for what it was…..A CLEVER LIE! They then tried to hit me with a lawsuit of slander and I fought right back knowing I was right (please see my video explaining and discussing their legal threats). They have now changed their program!!!!! It no longer has CLIENT REVIEWS and instead is only….’peer reviews.’ I will tell you every rep in the Blue Ocean Portfolio office got a form for nominating people……They all nominated the others……we finally stopped because the entire process is a joke. I really think you should investigate it more because it will give you a bad name because once you know the facts it’s obvious you’re just trying to dupe people and that doesn’t sound like the type of person you are. Funny side note, a guy who applied to be my property manager since i own about 80 rentals sent in his resume……on it…….5 Star Wealth Manager…….first thing I asked…..wow you won that what do you think of it……..’it’s a joke.’

By: Bryan Binkholder

Bryan Binkholder — Wed, 23 Nov 2011 02:02:35 +0000

Hey Honest Advisor it’s good to see you had your eyes open and did your due diligence. Since you were a wholesaler before and had experience with reps I LOVE YOUR COMMENTS. Jim Winkelmann of Blue Ocean Portfolios who I trust and admire we have a common thread that we always ask advisors who they would send their wife to for advice if they died…..the advisors like yourself that unfortunately know how sleazy the industry is say NO ONE! How true your words are and unfortunately this is the norm for the industry I believe from being involved in it for 15 years plus and Jim having been in it for over 30 and having owned a Broker Dealer. Appreciate your comments

By: Zach

Zach — Wed, 23 Nov 2011 00:18:26 +0000

Some of your points make sense, but I don’t think overall that it is a scam. I was nominated this year for the first time after 4 years in the business (haven’t won anything yet). I received an email about 3 months ago from an estate planning attorney that I have worked with on a few clients, informing me that she had nominated me. She is not my client. So I don’t think your argument of calling all of your clients necessarily means you weren’t nominated by anyone. You would have to call any industry contact you had ever worked with. I doubt the organization that runs 5-star runs around telling everyone that they have been nominated. Out of our office of 50 advisors or so, we have maybe 5 winners who seem to win year after year. I am guessing this is because the same people keep nominating them.

Now, to be fair, I don’t think 18% or 25% or whatever of my clients nominated me but I know someone did. And obviously the people who run this program are trying to make a buck off of selling you announcements and plaques. But it’s not a non-profit business they are running. They have to make money. And don’t they have to pay for the space in the magazines that they publish the results in? Makes sense that they would pass on the majority of the costs to the advisors that they are advertising for. I know here in Seattle, the ads are placed in Seattle Magazine, which is easily the most expensive magazine in Seattle to take out an ad in.

I think that perhaps the selection criteria might be too lenient. That would be a valid argument. But to say this is a complete scam is pretty over the top.

By: Honest Advisor

Honest Advisor — Fri, 18 Nov 2011 15:33:32 +0000

Bryan,

I am another St. Louis-based advisor, only four years into building my business. I’m having very good success, but not to the point where I would expect any “awards”, real or otherwise. I was contacted about this and was immediately skeptical. I called and talked to their people and got the same song and dance as most of the honest entries on this site. I even specifically asked them if there was anything EVER that I needed to purchase associated with this award, and of course the woman told me no.

I then researched it and watched your video, which only confirmed what I already suspected. The final piece of the puzzle for me was seeing some of the names of the advisors who had purchased the ads in their publication — wow, what a list! I was a mutual fund/annuity wholesaler for about 5 years, and left the business because I wasn’t very good at BS-ing people or downright lying, which unfortunately is a big part of what many of them do. I know or know OF a lot of the St Louis advisors. Many of those on this list I wouldn’t by a CD from, much less trust their investment advice. There are at least two that I know for a fact — with evidence — that they lie to their clients. Unbelievable. I leave this as “anonymous”, because I don’t want my firm associated with these comments — I make these comments on my own. I have supplied my actual email address, however, if you want to contact me for any reason.

By: Bryan Binkholder

Bryan Binkholder — Mon, 10 Oct 2011 18:06:03 +0000

Kudos to you ‘ fellow 5 Star Wealth Manager’ and straight shooter! It’s people like us that will clean this industry up. The funny part is I still get emails from my award in 2010 wanting me to buy more plaques! My friends company at Blue Ocean Portfolios has 4 of their call center people who are not even meeting with clients ‘nominated.’ I did notice they seem to have changed it from ‘customer referrals’ to ‘professional nominations.’ Funny but I’m pretty sure the scam is somewhat up but it will go on with advisors making this to be something it isn’t. Thanks John. Appreciate you.

By: John Bratschi

John Bratschi — Mon, 10 Oct 2011 17:21:49 +0000

Bryan,
As a fellow “winner” of this award for the past 2 years, I have always thought this was a joke – and have never told my clients/prospects about it. I told their sales guys to stop calling me about buying ad space and thougth that they would stop “nominating” me. It did not work – I am nominated again this year. I am going to ask them for a list of my cleints that nominated me. Should be fun.
I was interested to hear about your discussions with their lawers. It speaks volumes. I suspect you will not hear from them again.
What this all tells me is that there is a demand for a independent ranking of investment professionals. Maybe Morningstar or S&P will fiqure out a way to make money providing an evalatuion service.

Keep up the good fight.

Best,
John

By: Bryan Binkholder

Bryan Binkholder — Fri, 09 Sep 2011 15:26:40 +0000

Congratulations on your winning the five star wealth manager award! As a fellow winner kudos! Now, the real thing is by their own research you should have 25% of your clients who participated. They are 95% sure that at least 18% participated and nominated you. I contacted all of my clients since I only had about 50 at the time I won it. Couldn’t find a one. Even asked the company when they threatened me with a lawsuit of defamation to produce it and I’d drop everything. I still hold true to that statement. I won……..now if you saw I am defaming you show me the proof! Can you honestly look anyone in the eye and say you believe (I don’t know how big your practice is) that 18% of your clients were surveyed? Secondly, there is no cost for the award to win it. I didn’t pay a dime except that STUPID plaque I bought to show on this video and to laugh at with clients and others….(funny they’re still trying to have me buy more plaques almost 2 years later for $150). Lastly, I am the biggest marketer out there VG along with the biggest capitalist you’ve ever seen. The problem I have is deceptive marketing that is so blatant at producing trust that really shouldn’t be there. There are plenty of other ways to show your ability instead of this! That’s the beauty of free markets and voting with your dollars coupled with information. The Five Star Wealth Advisor Program or the Five Star Professional is simply a ‘zigma nu’ designation. It’s something you buy to put on your resume to look good. but it doesn’t mean anything.

By: VG

VG — Fri, 09 Sep 2011 15:05:16 +0000

I’ve never paid for this award, and I’ve “won” it twice. I know which client nominated me. If this is the sole reason someone chooses to do business with an advisor they are stupid. But, if it gets you a “second look”, combined with REAL due dilligence, then it’s worth it. As much as “marketing” may seem evil to you, it is in fact how business operates – you have to “market” yourself. If you don’t deliver the goods, then shame on you; but if you do, then what’s the harm in showcasing an award?

By: Bryan Binkholder

Bryan Binkholder — Wed, 07 Sep 2011 01:50:16 +0000

Thanks Eric. You won’t find CPA’s on there since they have a high degree of professional regulation regarding their CPA name and etc. Your making the right decision because the guys are either trying to ‘create an image’ or they just don’t take the time to see what a joke it is. Now if they just mention it on something I’m not as concerned but when they have the full page reprints…..make it the central focus on their site or in their office they are frankly trying to pull the wool over somebody’s eyes. Funny story just happened–actually 2. One guy from Charles Schwab called and won it but was suspicious so he called me. Brand new to an area and had no clients, worked in the back office and he won!!!!! Another guy applied for a job as a property manager for my rentals that I own and on his resume was Five Star Wealth Advisor. We had a hilarious talk about it and the guy knew it was a joke but it helped him earn some trust and business. It’s sad but that’s what this is–a way to dupe trusting people into believing something that’s not true.

By: Eric Rankin

Eric Rankin — Wed, 07 Sep 2011 00:50:53 +0000

From New Jersey and a law firm handling estates and trusts I was looking into boasts this five star rating which now casts alot of doubt on how smart these guys are. Thanks for the info. I went to their internet site to find the list of recommended accountants in New Jersey and found no way to get that info.