The Financial Coach Show » Brokerage Firm Games

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

The Corruption of Index Funds & ETF’s: Lesson 101 How the Industry Pollutes!

Bryan Binkholder — Tue, 05 Apr 2011 15:15:32 +0000

The Financial Coach reveals in this coaching session how just like the mutual funds industry (which began as a good thing) has become polluted and corrupt, the industry (financial salespeople and firms) are now moving to corrupt index fund investing and Exchange Traded Fund investing (Passive Approaches to investing) by taking the truth and mixing it with ‘deception’ and half-truths.

Add in your comment and share your view. Is The Financial Coach right on or is he off the reservation?

Money Picks For Your Portfolio: Monkey vs Supposed Experts

Bryan Binkholder — Wed, 05 Jan 2011 00:25:24 +0000

Holy Cow! The Industry Says This Is Good-Broker Compensation

Bryan Binkholder — Sun, 26 Sep 2010 03:48:00 +0000

Simply amazing is all I have to say! Citi broker ‘transforms’ a 10 million dollar block of business that previous rep had only ‘produced’ (code word in industry for commissions) $250,000 but this broker took it over and ‘produced’ $800,000 off of the same block of business. This is good for consumers? Check out the article below and watch my video.
SuperStar Citi Broker Blows The Doors Open On His business

How Can Edward Jones Be On The Consumers Side?

Bryan Binkholder — Sun, 26 Sep 2010 03:17:13 +0000

The millions spent on advertising and JD Power Awards for customer service ignore the facts–Edward Jones is just like any other brokerage firm that sucks the money right out of investors portfolios. While targeting smaller accounts (typically assets of $500,000 or less) Edward Jones attempts to build a loyal following by having an office on every corner. While parading around touting their virtues (I do agree that out of all the large firms they are the least evil) they still receive over 76% of their revenues by ‘Product Partners’ who pay to have shelf space. What’s that? Just like a grocery store that charges more for product placement and having their products on eye level shelves, Edward Jones is compensated primarily by their Revenue Sharing with their Product Partners. Attached is the breakdown from their website. Question? How can this be good for investors when you know exactly what will be offered and what will be recommended?

http://www.edwardjones.com/en_US/disclosures/rev_sharing/disclosure_information/index.html

http://www.edwardjones.com/groups/ejw_content/@ejw/@us/documents/web_content/web126980.pdf

Ocean Green Tide & The Similarity To Investment Gurus

Bryan Binkholder — Mon, 02 Aug 2010 18:13:12 +0000

While vacationing to Florida I witnessed the seasonal conditional of ‘Green Tide’. I’m not a scientist or ocean buff but basically it is a green algae they call June Grass. The June Grass/Green Tide will come in to Destin/Panama City Beach at anytime during the summer but typically in July or August. Lasting usually a week, the crystal clear waters are turned green with the June Grass. Owning properties here and vacationing here quit often I’ve been here at various times and this is the first year in six (6 years) that I’ve seen it so strong. Scientifically they say if there are the proper amount of storms in the spring with lightening, enough run off with nitrogen and ideal conditions it can occasionally be very strong. This year we witnessed it and as you’ll see, the magnitude was great.

So, Who the Heck Cares? Well I guess no one until you hear my example of a gentleman discussing how ‘he knows exactly when it comes in each year’–you see where I’m going I bet. As he proceeded to tell all of us this wonderful insight I then asked a couple of pointed questions. What you’ll see from my video are some key points that we need to learn that will also help us in our investing and avoiding ‘gurus’ who tell us things that really have no idea about.

Mutual Fund Past Performance Monkey Business: BEWARE

Bryan Binkholder — Mon, 26 Jul 2010 23:25:41 +0000

Soon to be released study from the Journal of Empirical Legal Studies (Sept. 2010) shows that Mutual Fund Past Performance means nothing but is used to seduce and swindle investors. In this video and attached report, you will see exactly why looking at past performance of mutual funds is a cardinal sin (possible an unforgivable sin). The best part is they recommend the SEC require the following Disclosure on Mutual Funds:

‘Do not expect the fund’s quoted past performance to continue in the future. Studies show that mutual funds that have outperformed their peers in the past generally do not outperform them in the future. Strong past performance is often a matter of chance.’

Key components Empirical Study PDF (Key pages selected)

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