Dark Side of Financial Services

Six ideas to make sure you aren’t falling victim to commission-based products and services.

The majority of advisors make the mistake of having significant or moderate use of actively managed funds.

“America’s leader in financial planning” is ill-serving its own employees.

The cost of commission-based advisors are so hidden that you may be paying more than you realize.

Ten principles of safeguarding your money applied to the latest investment scandal.

A computer algorithm cannot help you with these things.

See our review of the two pros and nine cons of how Schwab monitors and rebalances portfolios.

It is a great marketing campaign, and the service is a wonderful idea, but the asset allocations of SIPs aren’t actually that intelligent.

A board of directors is supposed to be accountable to the shareholders but sometimes they need a reminder.

In theory, the directors of a corporation are hired to provide independent oversight and protect shareholder interests. In practice, they’ve developed a reputation as country club chums with the executive managers.

I love that Bob Veres thinks that labeling someone as a broker or advisor would help bring clarity. It shows his optimism.

Their attorney, New York-based Barry Lax, says the two ballplayers are the latest professional athletes abused by predatory financial advisors.

The fight is on! Everyone wants to be known as a fiduciary, but not everyone deserves the title.

Eternal vigilance is the price of liberty.

While I agree with the study, I don’t know that I agree with the prescribed solutions suggested.

Those who don’t understand or experience regulatory capture wrongly believe in a team of angels at these federal agencies tirelessly working for the common good.

If your advisor is on one of these lists you should be aware of how they are paid.

Beware of government regulation, especially when a portion of the industry thinks it’ll be good for business.

These are the wolves of Wall Street pretending to be the helpful sheep of investment advisors.

“Estimates range from $5,000 to $20,000; sharp opposition to Finra getting involved.”

Low risk firms should be visited less frequently by the SEC.

Many government mailings look like spam. And much spam tries to look like a government mailing.

The documents where you can review 20 key issues looking for 10 red flags, or…

There is no such thing as a sure thing, and if something sounds too good to be true, it is

Five red flags any one of which should make you stop and reconsider.

Those who use the term “financial advisor” on their business cards can be split into two groups: fiduciary advisors and nonfiduciary advisors.

There is great disagreement in the financial services world if an advisor who has continuous and comprehensive management of a client’s assets should be allowed to also benefit from transactions that they recommend.

The entire selling point of the immediate fixed annuity is a lower return in exchange for a guarantee. But when analyzed, the purchase price is a loss from which you can never recover.

Make sure that Mom and Dad have a family member and a fiduciary advisor watching out for their finances.

“Average American investors start to worry that FINRA will damage their relationship with independent financial advisors.”

Unfortunately few consumers understand what a fiduciary standard means to them.

Most consumers do not know how to safeguard their money. Here is a real world example of why breaking any of the eight safeguard puts your money at peril. Make sure that your investments are properly safeguarded.

Study in Boston area, with undercover actors posing as clients, showed commission-based advisors putting their own interests first

I read a number of articles touting the growth and “advantages” of annuities. Personally, I’ve never met an annuity I liked.

“Variable annuities are garbage. They have huge expenses; big fees if you try to bag out before a certain point; and massive tax problems compared to other ways you can invest. But that’s what you’ll probably be steered to by a commissioned insurance salesperson.”

“Successful active management is a fantasy stoked by the financial services industry.”

Kiplinger is teaming up with the National Association of Personal Financial Advisors (NAPFA) to bring you FREE, personalized financial advice.

Unnecessary regulation annoys the good guys, and doesn’t stop the bad guys.

Investors in this year’s fund IPOs should be protesting. Investors who got suckered by brokers have been massacred by fees and poor performance. Their total losses — hard to believe — total about $1 billion.

“Structured products’ risk-reward ratio is worse than you think.”

High Net Worth individuals are often solicited to provide funds for a private venture such as opening a new restaurant business. Think thrice before considering investing.

Not every investment consultant has your interests as the top priority, or even the necessary credentials. Here’s how to find the right type of adviser.

Clark Howard recently advocated using a fee-only advisor generally and the National Association of Personal Financial Advisors (NAPFA) in particular.

“If you want advice that’s free of such conflicts, you’ll need to look for a true fee-only (not fee-based) financial planner.”

A conversation between a wirehouse advisor and a senior citizen who seeks trust

The United States has three sectors of the economy suffering under regulatory red tape: financial services, energy and now health care. I’m certain the financial services regulations have caused more harm than good.

Only if you swear by the genius of Caesar, trust in his altruism and believe in his divinity is this bill a cause for celebration.

The returns offered by immediate fixed annuities aren’t as good as they sound. The slight of hand in this case is the immediate loss of 100% of your principal. They are fixed for you to lose and the insurance company to win.

We call the difference between the market return and typical investor returns the “termite gap.”

There will always be swindlers masquerading as investment advisors. You can learn to recognize such people by their over-the-top lifestyle.