Free dinners on brokers
 

Anybody getting solicitations from stock brokers offering free dinners? I seem to get about one per week. According to The Wall Street Journal many "troubled" brokers cluster in areas inhabited by relatively well off senior citizens. Free dinners are one way to mine for the gold. Brokers refer to the dinners as "platelickers".How Troubled Brokers Cluster, Often Among Elderly Investors - WSJ - WSJ

We get them all the time - straight in the recycle bag. We made a huge mistake a couple of months ago, we fell for a seminar put on by a company who we thought were in some way attached to the Fire Department in TV! They were actually selling smoke alarms and carbon monoxide alarms which are hard wired into the home and attic. They sounded like a really good idea and we were stupid enough to let the salesman come to the house afterwards to see our property and give us a "really good price" for our safety. He wanted us to spend upwards of $7,000 and we could not get him out of the house ................ never, ever again, will I be taken by anyone.

We get those solicitations several times a week and also they go straight into the garbage! We had someone call to fore free assess our electrical usage efficiency. We figured at some point they would try to sell us something so flat out said no thanks.

There's no free lunch -- or dinner!

Have a friend who goes to one of these luncheons every day. Bags half the food for dinner. She hasn't bought or fixed a meal in three years. Not my cup of tea but it floats her boat (I love mixing metaphors!).

Every Day? Three years?

Mixed metaphors can be quite useful, and they are as American as killing two birds with one apple pie.

Every week day, anyway. She's quite proud of this.

So she will listen to an hour's sales pitch every day for lunch or dinner and leftover food?

Her time must not be worth much to her. I bet the local brokers know her well by now. Does she ever give you any stock tips?

If she does, I don't hear them. She's very sweet but seriously ditzy. As to her time, hey, she's retired and all the time in the world, just not all the money. (Her words, not mine.)

There is a reason they give you "free dinners", because they have to to get you to listen. If their product or service was so great they would have all the business they need.

Just this week I went into a place where one of these "seminars" were being held. It had just ended and the sales person was at the bar. I asked him what the seminar was about. He proceeded to show me a flyer about a company offering bond rates that were a bit to high to believe. Like 5% for a yer, 6% for two etc up to 9% for 7 years.

I asked lots of questions and got the company name and when I got home I checked it out. There is a great reason they are offering those rates. RISK and very high risk. They offer those rates because they have to in order to get money.

So eat all the "free dinners" you want, but don't buy unless you completely understand what it is your buying.

When I was starting off as a fee-only financial planner (lo, these many years ago), I used to go so I could torture the speakers. I would ask innocent questions about index funds versus active management. But the thrill wore off.

It might be fun to go as a gadfly. Maybe I will try it when one of the offered platelickers is at a fancy steak place..

redwitch: so if one of these brokers calls her out she pleads dermentia, I am a slow learner or you still haven't convinced me but i am still open:mmmm:

Food for Thought:

Money (Retirement Guide 2015) November issue

There is a good article on page 81: "False Promises, Dashed Dreams, " subtitled "The Perils of Bad Advice."