Posted: 8/25/2015 4:54:36 PM EDT
[#6]
Quote History Quoted:
Yes and no.
Yes, the relationship is very important. But, my experience is that the national chains (UBS, Fidelity, Edward Jones, Raymond James, Schwab, etc) push their reps to push certain funds/ETFs/products that they have relationships with, giving them more of a cut. For example, you may want to invest in a particular Vanguard fund, or American Century, or whatever but your rep and Raymond James may not get as big of a piece of the action so will try to steer you to something else. Not saying they won't let you, but they may tack on an additional fee, or price it higher than their preferred partners to make it less appealing. And I was just using Vanguard and AC as an example.
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Quoted:
the particular firm doesn't matter its all about the specific guy that will be advising you.
Yes and no.
Yes, the relationship is very important. But, my experience is that the national chains (UBS, Fidelity, Edward Jones, Raymond James, Schwab, etc) push their reps to push certain funds/ETFs/products that they have relationships with, giving them more of a cut. For example, you may want to invest in a particular Vanguard fund, or American Century, or whatever but your rep and Raymond James may not get as big of a piece of the action so will try to steer you to something else. Not saying they won't let you, but they may tack on an additional fee, or price it higher than their preferred partners to make it less appealing. And I was just using Vanguard and AC as an example.
I'm not sure if it's coincidence but my best friend and I both have edward jones in different states. One day he asked me what I had my 401k invested in (i've been dabbling since I was 10 in stocks but I haven't been active in 4 years) because his wasn't doing good and he thought I still kept up on that stuff.
I told him "fuck if I know, mine doesn't even beat inflation most years". He texted me a picture of his statement showing the different funds. He had 9 different funds with money in them. I had the same 9 with 1 other that I had just started.
As I said I don't keep up on that stuff anymore, my 401k is basically just my unemployment fund but I find it suspicious that ours matched that close.
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