Lainey

This is not in the same category as Deb's issue, but slightly similar as far as who is making the money on a sale/account, so to speak...We have had the same advisor/broker for probably 20+ years. She was relatively new to the field when we started with her. She has done a good job (I think) of keeping us well diversified. However, early on, she had pushed some "house funds" and we did invest a little $. Along the way, someone with a good knowledge of the stock market suggested that was not the best area in which to invest. He was right. Some of these funds suggested also seemed to be house funds in disguise. We dumped what was purchased not too long after the investment. I let her know I had no interest in this type of investment, in the future. I do believe the higher ups in the "house" (a large brokerage firm) were asking their brokers to push those funds.

Since that time, if we are investing any of our retirement $ or moving it around, she offers suggestions as to what she thinks will continue to keep us diversified. Sometimes I go with her suggestions, other times, my gut just say "no" I'm not interested in that.

S2KRAY

Dow is up 163 so far. We are in 23K territory.

dlq04

Lainey, I was surprised during my pre-retirement research that one of the brightest guys I know, who was a EVP where I worked (12k+ employees) and who went on to be the P at the next company was using a broker who was always pitching their 'house funds'. Thanks but no thanks.

UnkieTrunkie

Just to add my $.02, my advisor/advisory company has full access to my IRA and my general brokerage account. They don't have access to my 401K nor my ESPP (Employee Stock Purchase) accounts. That said, when they send out their quarterly reports, I do realign my 401K accordingly.

At my current level of investment, most of the picks they assign me are general and sector mutual funds, with the occasional select instrument.* They rarely create their own products to sell to their clients; rather, the products are based upon the advice they'd give. Furthermore, the group only takes commissions quarterly with your portfolio gains, not your portfolio transactions.

I have to believe that we're due for a correction, but timing-wise, it's supposed to show up this week or the next 3-4. The fundamentals, including and especially consumer sentiment and yield curves, are not telling me that the correction is going to show up in the "normal" fashion.** The only tell I've seen that things might be going sideways are that non-profits are struggling (that could be localized to me, though), and a few small businesses (breweries, and one podcast) are struggling as well.



*The advisory company created a S&P 500 Bond instrument (think non-junk-fully-backed-bond-obligation) as a long bet, with the bond backed by Deutsche Bank. That's the only company-specific instrument I've seen, but again, was built on the premise of S&P growth over the last 5 years.
**whatever that is - massive profit taking? Shaken Faith?

MsPerky

I also have another investment account with a different company, which I plan to keep. I'm a big fan of spreading the wealth around a bit. I'm considering adding to that portfolio with some funds that are in a money market right now, regardless of what my new advisor at the other company says. It has performed pretty well at my moderately conservative risk level.

Legal Bill

Since I deal directly with Fidelity, of course they have access to my accounts. No way around that.

Heyitsgary

My entire 401K is in a Fidelity account. They have ZERO access to make a transaction on my behalf. Am I not interpreting your comment correctly?

My advisor is independent. I get guidance and review of my accounts, plus overall financial guidance (what types of things I need for will, estate, etc...). I also get theoretic objective advice on additional wealth building options. Since she isn't tied to a company/boss pushing what works for them, I feel she is much more inline with my goals.

My question was really to gauge a level of risk. I think it was Ray who said "they only do things after they ask me"... To which I say, "Until they do it without asking, and you notice on your next statement".

MsPerky

My CPA, whose opinion I value highly, has recommended that I start fresh with a new company/advisor. He also suggested that I could go with no advisor at all, but I just don't think that is for me. Interestingly, he is with Fidelity. So I'm now mulling over my next step. I plan to contact an investment attorney soon and meet with him to supply the last piece of the puzzle, as much as I'm able to. Then I will make up my mind. Vanguard has entered the picture as a possible place to land.

MsPerky

^ I'm definitely not staying with the current investment company. Now I need to determine whether I'm moving everything to my other investment company or part there and part to a new one. Been doing a lot of research the past few days, narrowing down the possibilities. It is rather mind boggling the number of companies out there - understanding their fee structures, types of accounts, etc. Talking with my advisor at the other investment company tomorrow to get a few questions answered before I make my decision about the all or part. I expect this week I'll know what I'm going to do. It makes my head spin.

dlq04

Deb, you'll be fine and make really smart decisions. I'm sure of that.