A Simple Mistake That Cost Me Thousands in Home Buying Benefits

A few years ago, I was competing for a client’s business. I was one of two other advisors who were being interviewed, and I gave my traditional spiel. It turns out that one of the guys I was up against had guaranteed to the potential client that he could make 12% in the stock market.

Now, keep in mind that this was not before 2023, and even if it was, it wouldn’t matter. The advisor was using basic mutual funds and still had the audacity to claim to my client that he could net him a guaranteed 12% return.

I was in shock.

Lesson Learned: If you ever come across any type of advisor that guarantees you any rate of return, and isn’t quoting you a fixed annuity, a CD, or some type of insured bond – don’t fall for it. It’s too good to be true. Get out of their office fast.

Does anybody else find cold calls from financial advisors extremely annoying? I have 3 accounts.

Schwab holds retirement accounts and it does what I need it to do. I use TD as a brokerage and it does what I need it to do. They fulfill their purpose and never bother me and are great. But I also have bank account w Bank of America / Merrill lynch and I get a call from them every week from a different dillhole offering me his financial services and I find it so annoying and violating bc I know what’s happening is that these back office bungoles are looking at my accounts and holdings, which is targeting me as a good call for their prospecting.

It’s like I’m paying them to upsell me on their services, which they have never actually are able to explain why I need

Just filed my taxes and I’m looking more closely at my finances. I’m pretty good with the basics but feel completely out of my depth with investments.

In 2021 I started a Morgan Stanley investment account with the financial advisor who has been managing my parents’ money for many years.

I invested $67,000 in 2021 and let the advisor choose the stocks/bonds/funds/etc, telling them that I’m extremely risk adverse and I needed safe investments. On Jan 1, 2022, the value was $71,950. On Dec 31, 2022, the value was $58,587. In 2022, I paid $1,025 in trade commissions and $984 in service/advising fees. So basically I paid my advisor $2,000 for her to lose me $13,363 over the course of 2022.

Is this normal? Every time I ask my parents or advisor they tell me “the market is down for everyone.” But my parent love their advisor and thinks the sun shines out her butt and my advisor has a financial incentive to keep me.