Oh, I didn't take anything personally. But I think it's inaccurate to say "most" are "salesmen", etc.
It's a highly regulated industry overall. Some companies regulate themselves more than others, and some train their people better and provide their people a guaranteed income for the first several years so that they won't be so likely to stick it to people and end up getting fired.
"Firms" such as Primerica and Ed Jones are not so good overall - little or no beginning pay, limited investment choices, high upfront fee structure, etc. Primerica is even multilevel marketing. And I've heard and seem some stuff regarding the brokers / agents of these insurance companies as well - high fees, poor (strictly or mostly proprietary) investment choices, brokers churning in the accounts, etc.
I've also heard some bad stuff from people investing with the retail banking arm of one of the world's largest banks - brokers wrongly telling clients they cannot leave for another institution without paying big fees because of their "contract"... or telling them that some of the better and more unique products they offer through other companies were "created specifically for the bank's customers" by the company selling the product - so that the clients wouldn't be tempted to leave for another institution, etc. Lying, basically.
But the better firms such as Wells, Merrill, Goldman, and JPM are better for investors - at least for investors with 6 figures or more. It's unfortunate that the very small investor (under 6 figs) doesn't really benefit from the better firms, and those better firms are generally not interested in them because they have limited funds.
These are the firms where an advisor is not going to be just a "broker" or a "salesman". I became a registered investment advisor many years ago when I left a bank for a big firm. More disclosures and transparency, fiduciary, paid mostly on a % of assets managed, etc.
I have been independent for years, and only deal with accredited investors - and a limited number who I have trained well, at that.
I actually had a client (very emotional retirement aged female) ask me years ago "What kind of
salesman are you?" when she showed me some hot stock tip some guy at the bar recommended to her, and I immediately told her all the reasons why the investment was not a good idea for her situation, and that the stock was already overpriced and far too risky for her. I told her that unlike her former Ed Jones hack, I was looking out for her best interests. He had not - he would simply do whatever she asked - including buying those "hot stocks" that would end up costing her grief and money, and also not talking her out of putting a couple hundred grand into a VERY obvious ponzi scheme (with an "independent" crook) he should have recognized as such.
What people who cannot do their own investing should do is shop around. And even though I'm independent, I actually advise most people to stick to the big, reputable firms - virtually no chance of getting caught up in a Ponzi, the firms are SIPC insured, insured against theft, etc.
But most people won't shop around for an advisor - they'll just bring their newfound windfall into their local bank, or into the office of an old buddy, or a friend's broker or whatever.
Have any prospective advisor put together a detailed proposal of what they plan to do with your money, disclose all fees, their track record, etc. Most who come into money suddenly simply do what's convenient or invest with their emotions - they do it all wrong.
LMAO JR!! I didn't mean to use such a broad brush, we all know there is exceptions to the rule. You seem like a genuine good guy as you share good tips and investments here.
But we also know most planners\investors that work at big box Investment Companies are for lack of a better word 'salesmen'. They sell company templates that benefit ..their company at the expense of the client. Like selling a young family with meager means a whole life policy. We have also seen MANY rich sports\public figures get took for every cent by their fiduciary.
I just recommend everyone takes a interest in their nesteggs and learn how to put your money to work and be that extra pair of eyes on the 'fiduciary''. Don't Invest and Forget.
Sounds like you work for a private firm or yourself? A different game for sure as most private firms have a minimum investment, some as high as $1mil. They're a lil more hands on
Anyways didn't mean to impune your integrity JR
