Edward Jones-Pushing Advisory & Performance
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This post left me muttering, so I felt the need to respond.
[quote=RealWorld] ... I can't believe anyone would sit here and say that it is fine to move money into the AS from old A share money unless they are willing to say that their philosophy has changed.
[/quote]
This would be even if the client is rescinded front load commissions they paid within a reasonable period, is that true? Or do you think that because you purchased Putnam or Goldman Sachs, you are wed to them forever?
And for what it's worth, my philosophy never changed. The company made available to me something I always wanted. Pardon me, I know someone else on these boards said this better than me, but it's true for me nonetheless.
[quote=RealWorld]
I have not found a way to make it work yet and the idea of putting 20K in a 5% load and the rest in AS is SICKENING. And non defensable.[/quote]
Nobody is saying this, but thanks for stating the obvious.
[quote=RealWorld]
Lastly, we SHOULD all know by now that one way is not always the best. For some people AS is good, for some people load funds are good, for some situations VAs are good, for some C shares are good.
If you are saying I ONLY do XYZ then you are probably not all that good at financial advise.
[/quote]
So ... having a format and not straying from it isn't a good thing? All I am responsible for doing is making sure the client knows that mine is not the only way, but it is MY way. What it sounds like to me, is that there are some people to whom you cannot sell a VA, some you cannot sell a load fund, and some that will not pay for an AS and you adapt to the client.
To each his own; but don't condemn me for having a system I employ successfully. My clients do very well, thank you, and are happy for having me in their employ.
[quote=RealWorld] I am a Jones guy and I can’t believe anyone would sit here and say that it is fine to move money into the AS from old A share money unless they are willing to say that their philosophy has changed.
I also do not think Ejones is a joke, however about 30% of their brokers are. Are we really this ignorant to call each other names or argue back with JD Power award and we manage money!!!
Anyway this is a huge problem at Jones. If I am not a bad broker who is taking old money and converting it, then like others on here I am only doing it with new money.
I have not found a way to make it work yet and the idea of putting 20K in a 5% load and the rest in AS is SICKENING. And non defensable.
EX: I put 375 in AS and had a horrible June 9K gross. My RL called and asked "what happened, did I take the month off? ha ha… ".
Lastly, we SHOULD all know by now that one way is not always the best. For some people AS is good, for some people load funds are good, for some situations VAs are good, for some C shares are good.
If you are saying I ONLY do XYZ then you are probably not all that good at financial advise.
[/quote]
Great insights. thanks for sharing
bil:
I agree. I was planning on interviewing with them until I read all this stuff:
“Awful, awful awful!!! I have been bounced to three different advisors in the last 4 years and neither was worth anything. I have lost over 30k. The only thing E.J advisors advise is to invest in what makes THEM more money, not the client. I could have done a better job myself with my eyes closed. I only heard from the advisor when he needed to sell one of my stocks or mutual funds so he could make more money or qualify for a trip contest E.J was having. THIS IS A VERY UNETHICAL COMPANY. The advisors are just SALES PERSONNEL! This was a very expensive lesson for me.RUN FASTER THAN THE SPEED OF LIGHT AWAY FROM THIS COMPANY.”
“Edward Jones is a horrible company…the Financial Advisors use their fake smile and play the “best friends” game and act as if they want to become part of the family with all of their wealthy Clients…yes, the ones with alot of money, their top clients that they know they will continue to make some good commission off of and bring money into the company…the others can all bite the dust…The Financial Advisors are what the company focuses on, if you are in any other position, you are nothing, and I mean nothing, not important and not appreciated or so it seems from what myself and my husband have noticed in the past (with the support people) before deciding to leave and go elsewhere where we are treated properly and satisfied…the poor workers that are not F.A.'s do all the work and barely make anything while the F.A.'s reap all the rewards…I felt so sorry for the lady up front…barely making ends meet, driving an old car, and couldn’t afford medical benefits as one hard working lady told us while we would wait for so long to meet with the F.A., always running behind schedule and making others wait…See you have the F.A. with the big home, fancy car, weekly golf games and playing on the computer in his office claiming to be busy at times when he was in contact with other F.A.'s and betting on sports…fantasy football ring a bell al you F.A.'s out there? lol…every time I called to speak to the F.A., I had to deal with the gatekeeper or front office person and I always got the same response “Mr. L is in conference with a client or on a phone conference” may I take a message or assist you with something?.. or some crap they seem to tell these people up front to say…they are lazy every day for half the day, strolling in late and these poor support people are the ones doing all the work…we have seen this at 3 different Edward Jones locations…and on one occasion, I couldn’t believe I saw this poor woman cleaning the office and running personal errands too? All for a low hourly wage…it’s pathetic…without these support people, the F.A.'s would not be able to make it…also, we were upset because whenever we would ask the F.A. about Stocks, the F.A. told myself and my husband, I am sorry but I am not good at picking stocks, always forcing American Funds on everyone…what kind of F.A. should be working for E.J. if they don’t know how to pick stocks? It seemed like most clients got the same advice…the F.A. staying away from Stocks and focusing mainly on Mutual Funds…forcing American Funds on the Clients all the time…I guess we had such a bad experience and they do some under handed things in that firm, FINRA and SEC should check out each branch location at least 5 times a year, I am sure they are bound to catch something that they are doing that is against the rules and regulations…All I can say is RUN, AS FAST AS YOU CAN AWAY FROM EDWARD JONES”!!!"
http://www.rateitall.com/i-92963-edward-jones.aspx
<DIV =reviewFlag>[/quote]
Imposter! Fake! Phony! What else is there to say?
[quote=voltmoie]B24, seriously. These are Jones employees we are talking about. They suck. They are stupid. Geeeez, you should know this by now.
I agree. I was planning on interviewing with them until I read all this stuff:
“Awful, awful awful!!! I have been bounced to three different advisors in the last 4 years and neither was worth anything. I have lost over 30k. The only thing E.J advisors advise is to invest in what makes THEM more money, not the client. I could have done a better job myself with my eyes closed. I only heard from the advisor when he needed to sell one of my stocks or mutual funds so he could make more money or qualify for a trip contest E.J was having. THIS IS A VERY UNETHICAL COMPANY. The advisors are just SALES PERSONNEL! This was a very expensive lesson for me.RUN FASTER THAN THE SPEED OF LIGHT AWAY FROM THIS COMPANY.”
“Edward Jones is a horrible company…the Financial Advisors use their fake smile and play the “best friends” game and act as if they want to become part of the family with all of their wealthy Clients…yes, the ones with alot of money, their top clients that they know they will continue to make some good commission off of and bring money into the company…the others can all bite the dust…The Financial Advisors are what the company focuses on, if you are in any other position, you are nothing, and I mean nothing, not important and not appreciated or so it seems from what myself and my husband have noticed in the past (with the support people) before deciding to leave and go elsewhere where we are treated properly and satisfied…the poor workers that are not F.A.'s do all the work and barely make anything while the F.A.'s reap all the rewards…I felt so sorry for the lady up front…barely making ends meet, driving an old car, and couldn’t afford medical benefits as one hard working lady told us while we would wait for so long to meet with the F.A., always running behind schedule and making others wait…See you have the F.A. with the big home, fancy car, weekly golf games and playing on the computer in his office claiming to be busy at times when he was in contact with other F.A.'s and betting on sports…fantasy football ring a bell al you F.A.'s out there? lol…every time I called to speak to the F.A., I had to deal with the gatekeeper or front office person and I always got the same response “Mr. L is in conference with a client or on a phone conference” may I take a message or assist you with something?.. or some crap they seem to tell these people up front to say…they are lazy every day for half the day, strolling in late and these poor support people are the ones doing all the work…we have seen this at 3 different Edward Jones locations…and on one occasion, I couldn’t believe I saw this poor woman cleaning the office and running personal errands too? All for a low hourly wage…it’s pathetic…without these support people, the F.A.'s would not be able to make it…also, we were upset because whenever we would ask the F.A. about Stocks, the F.A. told myself and my husband, I am sorry but I am not good at picking stocks, always forcing American Funds on everyone…what kind of F.A. should be working for E.J. if they don’t know how to pick stocks? It seemed like most clients got the same advice…the F.A. staying away from Stocks and focusing mainly on Mutual Funds…forcing American Funds on the Clients all the time…I guess we had such a bad experience and they do some under handed things in that firm, FINRA and SEC should check out each branch location at least 5 times a year, I am sure they are bound to catch something that they are doing that is against the rules and regulations…All I can say is RUN, AS FAST AS YOU CAN AWAY FROM EDWARD JONES”!!!"
http://www.rateitall.com/i-92963-edward-jones.aspx
<DIV =reviewFlag>[/quote]
Imposter! Fake! Phony! What else is there to say?
I think I saw the first quote when I googled Jones a couple years back. Its funny that this is what Squash does in his spare time.
Kidding of course Squash.LockEDJ-
I am glad that my post left you muttering. This is your conscience telling you that you have a serious conflict on interest on your hands.
A. First off - even with commission rescinded that doesn't mean that the client gets all their commission back. That is just the yearly average commission if they have not held them for what 3 yrs?
So gest is that you sold them an A share against selling them a C or a wrap. Made 5% and now moved them to something where you get paid 1% each yr.
What I said was that if your philosophy did not change you were at a conflict of interest. Meaning if you did not have an epihemy that Wrap funds and rebalancing was better than you are already doing - Then you were doing this for you and not for your client. I think that is obvious.
B. I did not look for a fight here, so thanks for being a little salty, that smells a little like defensive to me.
C. Having a Strategy (not format) and sticking to it is the ONLY way to consistently beat the market and help your clients. When you change your strategy for a reason other than the benefit of your clients, you become no better than the country companies annuity salesman.
D. I don't get on here often and I am a Jones person but your last explanation about only being able to SELL people things is what makes you an obvious broker and not a financial advisor IMO. That makes me a little upset that we work for the same firm.
E. Lastly again sorry for the personal attacks on you but you really asked for them with your "Sales First" post.
[quote=RealWorld]
D. I don't get on here often and I am a Jones person but your last explanation about only being able to SELL people things is what makes you an obvious broker and not a financial advisor IMO. That makes me a little upset that we work for the same firm. [/quote] You can put whatever title you want on your business card but we know what you are. An investment sales guy. Go start a fee-only practice if you are something else.[quote=RealWorld]
LockEDJ-So gest is that you sold them an A share against selling them a C or a wrap. Made 5% and now moved them to something where you get paid 1% each yr.
[/quote]
If they were sold funds 2 years ago and they still have enough to qualify for AS minimum of $50k, then they would not have paid more than 4.5% up front. They may have hit the $100k breakpoint and paid 3.5%. It may be hard for some to believe, but some of our clients actually hit the $250k breakpt and only pay 2.5%.
In the previous examples, we are talking gross cost, not that the broker “Made 5%”. The dealer concession on those are 3.75, 2.75, and 2 respectively. In any case, 5% is incorrect.
If you are going to argue a point based on incorrect facts, I’ll assume your conclusion is also incorrect.
Hulk-
It amazes me the length that ANYONE would go to , to defend this.
First good point on 5% to the broker.
OK so it was 4.75 4.50 or even as low as 2 however you are missing the point when you talk about dealer concession.
I don't think that you should look at this as what is the dealer concession. The only fact that FINRA or any client should look at is the charge that they pay. Which most likely between 4.75-3.50 for most money going from mutual funds to a managed mutual fund account.
Here is the point... If you as a financial advisor thought that owning a lot of fund families (the best of the best) was the best way to invest LockEDJ would have bought the client C share mutual funds instead of A share.
So basically LockEDJ had to have a change in philosophy if he really thinks it is in his clients best interest to have rebalancing now when he didn't think owning multiple fund families was the right thing when he made 4.75 or 2.5 or whatever the charge was?
So from my perspective he either did a complete 180 in terms of mutual fund buying philosophy or he is only thinking of himself when he charges the client an annual fee after getting them to pay one up front for the (long term savings) that he "supposedly" wanted them so badly to get a few years ago.
Change of philosophy or churning
I don't get the middle ground maybe you could point it out. This is why I am not using it but I can not see any of your points to how this benefits your clients. And if you don't care about that then I am sad I share the same name on my door as you and maybe I should go independent as hotair suggests.
Correct/Incorrect?
[quote=RealWorld]
Hulk-It amazes me the length that ANYONE would go to , to defend this.
First good point on 5% to the broker.
OK so it was 4.75 4.50 or even as low as 2 however you are missing the point when you talk about dealer concession.
I don’t think that you should look at this as what is the dealer concession. The only fact that FINRA or any client should look at is the charge that they pay. Which most likely between 4.75-3.50 for most money going from mutual funds to a managed mutual fund account.
Here is the point… If you as a financial advisor thought that owning a lot of fund families (the best of the best) was the best way to invest LockEDJ would have bought the client C share mutual funds instead of A share.
So basically LockEDJ had to have a change in philosophy if he really thinks it is in his clients best interest to have rebalancing now when he didn’t think owning multiple fund families was the right thing when he made 4.75 or 2.5 or whatever the charge was?
So from my perspective he either did a complete 180 in terms of mutual fund buying philosophy or he is only thinking of himself when he charges the client an annual fee after getting them to pay one up front for the (long term savings) that he “supposedly” wanted them so badly to get a few years ago.
Change of philosophy or churning
I don’t get the middle ground maybe you could point it out. This is why I am not using it but I can not see any of your points to how this benefits your clients. And if you don’t care about that then I am sad I share the same name on my door as you and maybe I should go independent as hotair suggests.
Correct/Incorrect? [/quote]
All advisors should be independent.
[quote=RealWorld]
LockEDJ- I am glad that my post left you muttering. This is your conscience telling you that you have a serious conflict on interest on your hands. A. First off - even with commission rescinded that doesn't mean that the client gets all their commission back. That is just the yearly average commission if they have not held them for what 3 yrs? So gest is that you sold them an A share against selling them a C or a wrap. Made 5% and now moved them to something where you get paid 1% each yr. What I said was that if your philosophy did not change you were at a conflict of interest. Meaning if you did not have an epihemy that Wrap funds and rebalancing was better than you are already doing - Then you were doing this for you and not for your client. I think that is obvious. B. I did not look for a fight here, so thanks for being a little salty, that smells a little like defensive to me. C. Having a Strategy (not format) and sticking to it is the ONLY way to consistently beat the market and help your clients. When you change your strategy for a reason other than the benefit of your clients, you become no better than the country companies annuity salesman. D. I don't get on here often and I am a Jones person but your last explanation about only being able to SELL people things is what makes you an obvious broker and not a financial advisor IMO. That makes me a little upset that we work for the same firm. [/quote] Sorry to upset you; and I don't want to get into a spitting contest with another Jones guy. I've been told that I have a SALES job. As a successful recruiter, I've been told time and again to tell recruits this is a SALES job. You can't be an Advisor until you SELL something; and all the advising in the world is about SELLING more. Tell me that your region does it differently, or for that matter, any other Jones FA can chime in. Perhaps you should be upset at your firm, and not me. Because while we're on the topic of what is told to newbies, please do tell me how selling one BAC/Lehman bond to every person you've just met coincides with your philosophy of doing what is right for the client? How is that being ... a financial advisor ... when the prospect says yes? On the friggin phone to some pasty kid 1500 miles away, that's jumping for joy because he gets to put his name on the board and maybe leave with this groovy t-shirt? Here is what I was told: We don't sell B shares, and we certainly don't sell C shares. If you do, you'll have FS all over you. Now go out and sell. So maybe mine is not an epiphany and what I said holds water. Don't project to me your disgust. Because I have plenty enough to go towards people that look down on FAs for doing exactly as they are told. Tell me something; you want your clients to make the most they can with their money, yes? And the best way to do that is to charge them as little as possible and that's why you've always used A shares. Then, you know that when they buy A shares, that they could possibly get the best possible cost by buying all bond funds. Right? Later, you could rebalance into equity from the bond funds. So why don't you do that? Acch. I didn't want to get into a spitting contest and that's what I've done. Let it be said that I look into my heart with every transaction and do what is best for my client. I've seen plenty from transfers in from other Jones reps that show you may have a point in being disgusted, and I know you want what is best for clients ... just like me.you need to have some sort of understanding of the WHOLE industry to recomend what is RIGHT for the client whether it is fee based or commish stock bonds or mutual funds all firms r the same DO WHATS RIGHT! for client and they will be happy to pay fee or comish
Let me give you a slightly different perspective.
Edward Jones commissioned a study a couple of years ago and surveyed several thousand clients. A little over 1/2 of CURRENT Edward Jones clients would prefer an advisory platform. These numbers make sense to me, as many clients feel there are fewer conflicts of interests associated with a multi-manager platform with no revenue sharing and automatic rebalancing. With clients that I know have expressed interest in an advisory platform before the AS rollout, I have since had annual reviews and run the new platform by them. Of the 40 or so clients that I have put the AS in front of, all but one changed over. Am I ripping off clients that have had only one or two fund families in their old portfolio? I don't think so. If they have an American fund portfolio, where am I going to add small cap or mid cap? How about real estate or commodities? What about a good domestic bond fund? Yes, the cost is around 1% more annually, but the client prefers this type of account. I have long been using "best of breed" C-share portfolios under 250k. Yes, I do get a compliance wire on anything over 50k, but I have talked to our FS people, and explained my strategy. Answering an FSPEND or compliance wire is not a bad thing, they simply want a paper trail if the client ever sends in a complaint. When you must worry is when you send in a response into compliance and they don't like the answer. That has never happened to me on a C-share (have over 14 million in C's by the way). I also have several clients that would prefer to deduct their management fees. So I have rotated a few of my C-share portfolios into AS. Makes sense to me. As far as new money, I have been adding about 50-60% of my new clients that are owning mutual funds into advisory. This pretty much is in line with what is most likely the number that would prefer fee based advising based on the recent survey. So far I've brought my AS assets up to around 15 million. I also feel that every account I have used AS for has been appropriate. I've got a master's degree and a CFP. That doesn't make any difference if I'm not treating the client right. The AS platform is not without it's limitations though.... I have been adding several custom models lately. It makes me nervous when the net inflows into our cookie-cutter models are literally making up around 30% of the assets of some of these funds. When Edward Jones has to call on Bond Fund of America to make sure they have enough liquidity to get out of our position, that trend could create some prohibitively large moves out of some of these funds as the platform gets larger. They need to open the platform up to more funds, and allow some manual overrides of some of the percentages in each asset class. Long story short, it's not the perfect model, but they are working on it. Is it appropriate for everyone? No. Does it compensate the advisor justly for the work we do? Yes. By the way, I have hear Jim Weddle personally say that if an advisor is dropping significant advisory trades, but drops below standard, there will be absolutely no disciplinary actions.[quote=LockEDJ][quote=RealWorld]
Here is what I was told: We don't sell B shares, and we certainly don't sell C shares. If you do, you'll have FS all over you. Now go out and sell. [/quote] What? What if you have a client that has a 2-3 year time horizon and doesn't want to simply park money in CD's?[quote=3rdyrp2][quote=LockEDJ][quote=RealWorld]
Here is what I was told: We don't sell B shares, and we certainly don't sell C shares. If you do, you'll have FS all over you. Now go out and sell. [/quote] What? What if you have a client that has a 2-3 year time horizon and doesn't want to simply park money in CD's? [/quote] He's wrong. I put almost every client under 100K into C shares. I've discussed with FSD, and they have no problem with it. The only B shares I have were transferred in/inherited.[quote=LockEDJ][quote=RealWorld]
LockEDJ- I am glad that my post left you muttering. This is your conscience telling you that you have a serious conflict on interest on your hands. A. First off - even with commission rescinded that doesn't mean that the client gets all their commission back. That is just the yearly average commission if they have not held them for what 3 yrs? So gest is that you sold them an A share against selling them a C or a wrap. Made 5% and now moved them to something where you get paid 1% each yr. What I said was that if your philosophy did not change you were at a conflict of interest. Meaning if you did not have an epihemy that Wrap funds and rebalancing was better than you are already doing - Then you were doing this for you and not for your client. I think that is obvious. B. I did not look for a fight here, so thanks for being a little salty, that smells a little like defensive to me. C. Having a Strategy (not format) and sticking to it is the ONLY way to consistently beat the market and help your clients. When you change your strategy for a reason other than the benefit of your clients, you become no better than the country companies annuity salesman. D. I don't get on here often and I am a Jones person but your last explanation about only being able to SELL people things is what makes you an obvious broker and not a financial advisor IMO. That makes me a little upset that we work for the same firm. [/quote] Sorry to upset you; and I don't want to get into a spitting contest with another Jones guy. I've been told that I have a SALES job. As a successful recruiter, I've been told time and again to tell recruits this is a SALES job. You can't be an Advisor until you SELL something; and all the advising in the world is about SELLING more. Tell me that your region does it differently, or for that matter, any other Jones FA can chime in. Perhaps you should be upset at your firm, and not me. Because while we're on the topic of what is told to newbies, please do tell me how selling one BAC/Lehman bond to every person you've just met coincides with your philosophy of doing what is right for the client? How is that being ... a financial advisor ... when the prospect says yes? On the friggin phone to some pasty kid 1500 miles away, that's jumping for joy because he gets to put his name on the board and maybe leave with this groovy t-shirt? Here is what I was told: We don't sell B shares, and we certainly don't sell C shares. If you do, you'll have FS all over you. Now go out and sell. So maybe mine is not an epiphany and what I said holds water. Don't project to me your disgust. Because I have plenty enough to go towards people that look down on FAs for doing exactly as they are told. Tell me something; you want your clients to make the most they can with their money, yes? And the best way to do that is to charge them as little as possible and that's why you've always used A shares. Then, you know that when they buy A shares, that they could possibly get the best possible cost by buying all bond funds. Right? Later, you could rebalance into equity from the bond funds. So why don't you do that? Acch. I didn't want to get into a spitting contest and that's what I've done. Let it be said that I look into my heart with every transaction and do what is best for my client. I've seen plenty from transfers in from other Jones reps that show you may have a point in being disgusted, and I know you want what is best for clients ... just like me. [/quote] I don't know anyone who told newbies to sell a Lehman or BAC bond. Seriously. We used to have them in inventory and in hindsit that was a mistake but I NEVER was forced to sell a client into a specific product. I also was never forced to purchase a certain share class for a client. I can't believe anyone would tell you that "we don't sell B shares and certainly not C shares here". I as well as other can attest that we sell many C shares and a few B shares even though I hate them. As long as there is a logical reason that BENEFITS the CLIENT, you will be fine. Are you sure someone actually did these things to you? There is certainly sales in this job but we also have liscenses and responsibilities. In those responsibilities includes not making decisions with your client's money only to benefit your pocketbook. I can't help it Lock, I am on full tilt with you here.I’m glad you agree with me. This is a sales job. And I don’t believe anywhere I abdicated my responsibilities to my clients, and I’m sure you aren’t inferring that I did. Right?
Insofar as newbies, this is what happens at every PDP class. Perhaps you’ve forgotten what happens at St. Louis, and it’s time for a veteran like yourself to go there and contribute your time. But you’re given a choice on two items, and you call all day on people you’ve never met products that might have no relevance in their lives.
Re: C shares - Perhaps I misworded. Never told that we were forbidden to sell either B or C. Let’s say heavily dissuaded. But I am curious, exactly how much C share business is on your books from when you were in your first two years? I wonder quite frankly if this isn’t selective memory but if not, bully for you.
I asked this before so I repeat … have you ever considered why, if you are selling A shares to benefit the client on the basis of long term cost, you don’t simply sell him all bond funds initially? Are you making a decision there that realistically only benefits your pocket book? Seems like it to me and you certainly know this to be true. You have a responsibility to act as a prudent man might do on his own behalf.
In those responsibilities includes not making decisions with your client’s money only to benefit your pocketbook, well only you benefit by not buying in all at Bond fund prices.
[quote=LockEDJ]I’m glad you agree with me. This is a sales job. And I don’t believe anywhere I abdicated my responsibilities to my clients, and I’m sure you aren’t inferring that I did. Right?
Insofar as newbies, this is what happens at every PDP class. Perhaps you’ve forgotten what happens at St. Louis, and it’s time for a veteran like yourself to go there and contribute your time. But you’re given a choice on two items, and you call all day on people you’ve never met products that might have no relevance in their lives.
Re: C shares - Perhaps I misworded. Never told that we were forbidden to sell either B or C. Let’s say heavily dissuaded. But I am curious, exactly how much C share business is on your books from when you were in your first two years? I wonder quite frankly if this isn’t selective memory but if not, bully for you.
I asked this before so I repeat … have you ever considered why, if you are selling A shares to benefit the client on the basis of long term cost, you don’t simply sell him all bond funds initially? Are you making a decision there that realistically only benefits your pocket book? Seems like it to me and you certainly know this to be true. You have a responsibility to act as a prudent man might do on his own behalf.
In those responsibilities includes not making decisions with your client’s money only to benefit your pocketbook, well only you benefit by not buying in all at Bond fund prices.
[/quote]
Come on man, you are not the dollar tree of financial advisors. I’m trying to get PAID and help my clients meet their goals in the process. I didn’t take this job to run a charity. 7 times out of 10 if you truly lay out the facts the client is going to pick a C share over an A share … and I’m not talking the 6 year speech. I think you need to give Putnum as a rick of choosing an A share and then see what they say.
Plus, in a down market I think there is a great case to be made for selecting B shares over A. I want every dollar in the game I can get - especially after the hit most people took. ( no idea if we are really in a down market anymore)
Volt, first off … no doubt. I don’t apologize to anyone for getting paid to do my job.
The man questions if I’m doing things to benefit only my pocket book. I’m questioning the same of him.
Volt,
Right on on both counts. Studies have shown that, left to their own devices, the average investor only captures a small portion of the return available to them. If the only thing we ever do for people is help them capture that difference, we're worth plenty. I'm not saying that costs don't matter, but if 1 will get you 7, that's a great deal for the clients. And, IMHO, a big reason EJ wanted me to sell A shares was so that, if I left the business, EJ wouldn't end up having to settle with clients because of "non-disclosure". It was always about GP liability, never about what was "best for the client". Some HO dork came to my office once to explain that I would "capture more assets" if I always did A shares. I smiled at him, thought "what a GP tool", and totally ignored him (but I DID eat the lunch he bought!). B and C shares exist for a reason, and I use them when appropriate.