Quote:
Originally Posted by MrPrena
FA side is basically sales side of finance. It is basically rich people's job.
Poor guys like me need to get into risk/fund/analysis side.
If you know a lot of rich people who are not tapped or have little to no idea of investment, it is a great field for you.
I believe you need State Life, 7,66,and some designations like cfp.
If you are CPA or Tax attorney, Finance Adv. is great supplements.
|
Yeah my dad recently got suckered into handing 8% of his portfolio over to a financial adviser. I keep telling him that FA's rarely add value long term over low or no load mutual funds with low expense ratios but his colleague glowingly recommended this person and it's too late now as she's already collected her 2.5% commission (she's with Edward Jones).
It's funny, any trade between 0 and $5000 nets a 2.5% commission for this financial adviser, and that percentage goes down for $5000-$10000, $10000-$20000, and so forth. She "coincidentally" divided up ~90% of my dad's investment into small, $5000 chunks and the remaining 10% into $10,000 chunks which effectively netted her
near max commission. Her effective commission once everything was said and done was something like 2.3x% or 2.4x% which isn't exactly trivial on $500k especially when you consider loss of future, compounding capital gains.
To make matters worse, she's put something like 25% of the portfolio into extremely conservative, inflation-susceptible municipal bonds with awful yields. It's like why did we need to pay her to do
that?
Anyone here have any positive experience with Edward Jones?