The Financial Coach Show » Broker or Investment Advisor

How Much Do My Investments Really Cost? How Much Does My Financial Advisor Earn?

Bryan Binkholder — Sat, 07 May 2011 17:20:30 +0000

The Financial Coach, Bryan Binkholder is consistently amazed at the scary fact that hardly anyone knows or understands all the conflicts of interest in the financial field and the crazy fees. So many people have an utter lack of knowledge about what their investments really are costing that it puzzles him.

Ask yourself this question:
When you get gas for your car you know the price. When you buy milk or potato chips you know the price. When you see the doctor, you get a bill and know the price. Upon completing and filing your taxes your CPA provides you with a bill. If your car breaks down or you have an oil change, you know the price. If you join a gym, you know the price. When was the last time your Financial Advisor/Salesperson produced a bill or breakdown of their total fees to you?

Fact is, most investors have never understood how powerful this conflict can be to their wealth. Protect yourself and demand to know the truth–It will set you free! The Financial Coach has provided a simple to use ‘FULL DISCLOSURE’ and transparency fee chart to present to your advisor. Ask them to complete this in full and request that their supervisor also sign off on the document since in dealing with any firm you always want the chief people having the same level of committment as your investments and money. In doing so, three things will happen: 1) They will gladly provide it and believe that you have a full right to know since it is your money, 2) Give you rationale why they “can’t” complete the form or 3) Try to ‘explain to you’ their fees but not document them since verbal communication is always a he said/she said thing and subject to miscommunication (protect their butt!)

Obtain the PDF Form Here!
Full Disclosure Of Fees, Compensation and Other Fee Arrangements

Congress Rejects Bill To Force Stockbrokers/Advisors To Act In Clients Best Interest

Bryan Binkholder — Sun, 28 Feb 2010 21:50:58 +0000

Jason Zweig from the Wall Street Journal discusses how the Congress rejected the bill requiring stockbrokers and insurance agents to put consumers interest first. The only people giving independent advice conflict free are Registered Investment Advisors.

Brokerages Should Prepare For A Fiduciary World (putting clients first)

Bryan Binkholder — Tue, 10 Nov 2009 12:48:06 +0000

Great ‘insider article’ describing how currently brokers and brokerages must act in a ‘suitable world’ in which they just have to show that invest recommendations they made were suitable, although not necessarily the best for an investor. In addition, when it comes to special offerings, IPO’s and other specialty items that brokerages create or are heavily compensated to move (sell for a company), brokers do not have to inform the consumer about how much the firm is being paid to move the bonds or stock or mutual funds or whatever. Get armed and learn what a broker or Financial Advisor/Vice President (or First Vice President) of investments is really trying to sell you. This blog post by financial insiders reveals (through what it says between the lines) of what really goes on in the financial world and big brokerage houses.

http://blogs.wsj.com/financial-adviser/2009/11/06/brokerages-should-prepare-for-a-fiduciary-world/?mod=finadv

Investors Beware! What Wall Street Doesn’t Want You To Know

Bryan Binkholder — Tue, 10 Nov 2009 03:02:51 +0000