[Eg_cruz]

Originally Posted by retiredguy123

The application is not the annuity contract. The application may be 20 pages, but the annuity contract is more than 100 pages, and you will never see it until you have paid your money. I have reviewed several friends' investment portfolios where they had no idea that they had purchased an annuity. And, you cannot get a copy of the annuity contract until you pay your money. I have tried several times, and the salespeople absolutely refuse to provide a copy of the contract. They actually get angry when you ask for it.

Again sorry that happen to you but I am telling you can get a copy before.
I will agree there are some not so great agents just like there’s not so great judges, real estate agents, politicians, policy and so on and so on you

[Cuervo]

Its, human nature people will do what is best for whomever until there is a conflict where they and their offspring will benefit more.
Just keep that in mind.

[JanRoberts]

Try Fisher Investments. We're extremely pleased with them.

[retiredguy123]

Originally Posted by Eg_cruz

Sorry about that for you
I have been an agent for 24 years so if I tell you, you can get a copy of the policy I telling you the truth. I have given to clients when they ask.
I am sorry you had a bad experience but just like not all car salesman’s are bad same goes for annuities

Thank you. You said that anyone can ask for a policy. I guess, technically, it is true that you can ask for anything. But, over the years, I have been asked for an opinion from friends about buying an annuity that their advisor had recommended. I told them that I would happy to do that, but I need to read the contract first. But, on at least 3 occasions, when I called the advisor, they were very rude and refused to send me the annuity contract to review. They had slick brochures and PowerPoint presentations, but, I asked for the entire annuity contract. One guy even cussed me out and hung up on me. Another advisor explained that their company policy was to collect money from the client, based on an application, and then to send the contract to them. He said that the contract allows the client to cancel the contract within 30 days of receiving it, and they will refund the money. Another advisor said that I could come to his office and he will answer any questions about the annuity, but, under no circumstances, could he allow me to review the contract. That is the truth about my experience with annuity salespeople.

I have also reviewed portfolios for friends, and asked them if they knew that they had purchased an annuity. Often, their answer is that they had no idea that they owned an annuity. Note that I am occasionally asked for advice about investing because I have completed the Certified Financial Planner education program, but I have never been a paid planner or tax preparer. When I did the CFP training, I received the advisor trade magazines, and I was surprised at how many full-page ads it contained touting the 9 and 10 percent commissions available for selling annuities for insurance companies.

[birdawg]

Originally Posted by Eg_cruz

Sorry about that for you
I have been an agent for 24 years so if I tell you, you can get a copy of the policy I telling you the truth. I have given to clients when they ask.
I am sorry you had a bad experience but just like not all car salesman’s are bad same goes for annuities

. Why not give them a copy before they ask.

[JWGifford]

Originally Posted by manaboutown

This is an extraordinary 2012 study that confirms my belief that some if not many financial advisors are primarily commission driven and act in their own self interests to generate fees, ahead of the best interests of their clients. The paper is quite detailed and lengthy, containing disturbing findings IMO.

"Do financial advisers undo or reinforce the behavioral biases and misconceptions of their clients? We use an audit methodology where trained auditors meet with financial advisers and present different types of portfolios. These portfolios reflect either biases that are in line with the financial interests of the advisers (e.g., returns-chasing portfolio) or run counter to their interests (e.g., a portfolio with company stock or very low-fee index funds). We document that advisers fail to de-bias their clients and often reinforce biases that are in their interests. Advisers encourage returns-chasing behavior and push for actively managed funds that have higher fees, even if the client starts with a well-diversified, low-fee portfolio."

The actual paper is in a PDF.

The Market for Financial Advice: An Audit Study | NBER

As has been said before, there are good and bad advisors. I’ve had one for 30 years and appreciate his expertise and advice. He makes a percentage of my total portfolio value, so if I make more, he makes more and his percentage decreases as my portfolio crosses certain value thresholds. Seems reasonable to me. Some people enjoy managing money. I do not.

[Nevinator]

Originally Posted by retiredguy123

If you are correct, why can't the annuity salesperson tell you that you are buying an annuity, and why can't they give you a copy of the annuity contract before you give them your money? I learned a long time ago that you should never agree to a contract until you read it.

Have you seen the TV commercials where Ty Young is selling annuities? He is selling annuities, but he never says the word "annuity" in the entire commercial.

Because an annuity is ultimately an insurance product, at some point the buyer will receive the contract and they should read it before signing and sending back to the insurance company. By the way, all annuities come with a free-look period, if I remember correctly, it runs about 21 days.

[retiredguy123]

Originally Posted by Nevinator

Because an annuity is ultimately an insurance product, at some point the buyer will receive the contract and they should read it before signing and sending back to the insurance company. By the way, all annuities come with a free-look period, if I remember correctly, it runs about 21 days.

As I understand it, the free-look period starts after you have paid the money to the advisor. It should be before you pay the money.

[La lamy]

Yup!!! Learned that the VERY HARD way. Lost 1/3 of my savings by adviser putting me in ".com" stocks that went bust in 2000 and lost out on an even more stupid "insurance policy" from their bank that was a total money pit. Live and learn. I'm now educated about investing, and do it all myself.

[MikePgh]

An SEC registered advisor is obligated to act as a fiduciary and in their clients best interest. However that does leave the door open for them to share in commissions known in the industry as 12-b1 or advertising fees. These fees are charged by the mutual fund companies.

So while your advisor may say they are fee only, you need to ask if they share in any commissions. They should also be providing you with their form CRS (Client Relationship Summary) which spells out how they are compensated.

A lot of “fee only” advisors find other ways to get paid. You need to ask.

That certain national Advisory Firm that says “we’re different “… no they are not. They are a fee only advisor. Just like the thousands of other across the country.

Ask for the form CRS and read it. Then ask these questions
Do you share in any commissions or loads?
Who makes the decisions on where my money is invested? Is it your firm or do you outsource the portfolio management?
How many advisors will be familiar with my personal situation? Do I have a team or just you?
Is your firm independent or part of a larger national company?
What is your succession plan?

Mike

[retiredguy123]

Originally Posted by MikePgh

An SEC registered advisor is obligated to act as a fiduciary and in their clients best interest. However that does leave the door open for them to share in commissions known in the industry as 12-b1 or advertising fees. These fees are charged by the mutual fund companies.

So while your advisor may say they are fee only, you need to ask if they share in any commissions. They should also be providing you with their form CRS (Client Relationship Summary) which spells out how they are compensated.

A lot of “fee only” advisors find other ways to get paid. You need to ask.

That certain national Advisory Firm that says “we’re different “… no they are not. They are a fee only advisor. Just like the thousands of other across the country.

Ask for the form CRS and read it. Then ask these questions
Do you share in any commissions or loads?
Who makes the decisions on where my money is invested? Is it your firm or do you outsource the portfolio management?
How many advisors will be familiar with my personal situation? Do I have a team or just you?
Is your firm independent or part of a larger national company?
What is your succession plan?

Mike

Note that some mutual funds, like Vanguard funds, do not have 12-b1 fees. Read the prospectus. The 12-b1 fees must be disclosed in the prospectus. Another important thing to look for is the expense ratio. Vanguard funds have extremely low expense ratios as compared to the industry averages, especially for index funds.

[rsmurano]

There is no place on earth that a financial advisor or an annuity is needed.
Let me see, your business model is to make the most money off your investments. What is the financial advisors business model, too make the most money off of you. How does that benefit you?
Now an advisor who charges by the hours is ok to use so you can review his/her proposal and then you make the trades. I would also not use an advisor associated with any brokerage house because they will try to get you to buy house funds. I have personal experience of this on more then 1 occasion.

Annuities are just terrible. High fees, low returns. Again, the person holding the annuity isn’t the person making the money.

[coleprice]

My Financial Advisor gets a flat percentage of my portfolio's balance. The Higher my Portfolio Balance, the Higher their fee. They don't receive any fees for Transactions, etc. They pay those fees and expenses, not me.

[Boomer]

Does anyone have an opinion on why an advisor would put someone into closed-end funds? CEFs have high expenses and use leverage and it seems like there would be other kinds of funds that would be better.

Is there an advantage to closed-end funds? Whose advantage is it?

Boomer

[dewilson58]

Originally Posted by La lamy

Yup!!! Learned that the VERY HARD way. Lost 1/3 of my savings by adviser putting me in ".com" stocks that went bust in 2000 and lost out on an even more stupid "insurance policy" from their bank that was a total money pit. Live and learn. I'm now educated about investing, and do it all myself.

Without common sense, well ...............