Author Topic: Breaking up with broker - smell test of broker counter arguments  (Read 2729 times)

kepioo

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Breaking up with broker - smell test of broker counter arguments
« on: September 15, 2017, 01:46:57 AM »
Following up on this thread : https://forum.mrmoneymustache.com/investor-alley/so-i-am-paying-a-broker-an-edward-jones-broker-at-that/ and one user asking to
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And please report back any arguments proposed for why should stay with them!
Here is the message my EJ advisor sent me after the "break up" or firing (my justification for going with a robo advisor was to lower my fees; I had plethora of other reasons).

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It is demonstrably the case that managed funds perform better over a full market cycle; that is shown by the positive alpha that you can see on the Morningstar reports ( as well as simply the comparison chart with the benchmark). That's why your portfolio here was a blend of managed funds, etfs and indexes.

Would it be worth responding with counter arguments (if any) or just letting it go and thanking him again for his services.


Butterfingers

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #1 on: September 15, 2017, 01:55:12 AM »
What are you aiming to do by debating with him? I don't see what it can achieve except waste your time.

A polite, quick, and final goodbye would be my choice.

Frankies Girl

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #2 on: September 15, 2017, 02:40:15 AM »
The one thing these people are really, really good at is gold-plating their bullshit stories. They'll have great reasons why they are the best, their funds are worth the insane fees, and would love the chance to argue with you (a non-expert) until you are forced into a verbal corner by their ridiculous justifications.

Agree with Butterfingers - there's no point wasting your time. Say goodbye and don't look back.

EarthSurfer

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #3 on: September 15, 2017, 04:52:07 AM »
One of the wonderful things about a break up is you don't have to address the bullshit of your Ex.

As far as thanking the broker for his or her service, that was done in the form of paying his fees or purchasing products which paid a commission. It could be done as a "pleasantry," but the gratitude should be directed towards the departing client.

nereo

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #4 on: September 15, 2017, 06:01:34 AM »
Agree with others there's nothing to 'win' here.

What do you expect might happen?  Your former advisor will say "oh my gosh, you're right! Me and my industry are unnecessary parasites for the vast majority of individuals. I'm quitting today and dedicating myself to painting seascapes. Thank you so much kepioo!"

YOu might as well go into a car dealership and argue with them that buying a new car is a dumb financial decision.

kepioo

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #5 on: September 15, 2017, 06:23:52 AM »
You have very good points - I was dragging my feet a bit due to the "friend" relationship we had developed (outside of financial services); in all honesty, there was no more friendship going on - just enough to make it difficult and awkward to leave his EJ services. It's interesting how it all came down to listening to the Freakonomics podcast episode on index funds http://freakonomics.com/podcast/stupidest-money/ to convince me to pull the plug and look for something different. Besides the big closing fees I'll pay, the lesson learnt is to never mingle business or personal finance with friendship.

SeattleCPA

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #6 on: September 15, 2017, 06:57:02 AM »
What are you aiming to do by debating with him? I don't see what it can achieve except waste your time.

A polite, quick, and final goodbye would be my choice.

+1

Livewell

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #7 on: September 15, 2017, 09:36:19 AM »
"It is difficult to get a man to understand something, when his salary depends on his not understanding it."
- Upton Sinclair

slappy

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #8 on: September 15, 2017, 11:01:25 AM »
Maybe send him the link to the podcast?

TheAnonOne

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #9 on: September 15, 2017, 04:05:16 PM »
Guy in said business doesn't want you leave his business and thinks his business is best. More news at 11

Hargrove

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #10 on: September 15, 2017, 06:32:47 PM »
This guy is basically going to lose a paycheck when you make the right decision.

For some, their best friends would not give up the paycheck to tell you the truth, while for others, friendships are too important for dishonesty.

The most forgiving read on this is that the guy believes what EJ taught him about how great EJ is. I wouldn't hate the guy for being unwise. All other reads? He didn't particularly value your friendship when he signed you up to spill money on him.

Love the Upton Sinclair quote.

Travis

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Re: Breaking up with broker - smell test of broker counter arguments
« Reply #11 on: September 15, 2017, 06:40:36 PM »
This guy is basically going to lose a paycheck when you make the right decision.

For some, their best friends would not give up the paycheck to tell you the truth, while for others, friendships are too important for dishonesty.

The most forgiving read on this is that the guy believes what EJ taught him about how great EJ is. I wouldn't hate the guy for being unwise. All other reads? He didn't particularly value your friendship when he signed you up to spill money on him.

Love the Upton Sinclair quote.

I wouldn't bet against the idea he's cutting and pasting from corporate talking points either. 

You have very good points - I was dragging my feet a bit due to the "friend" relationship we had developed (outside of financial services); in all honesty, there was no more friendship going on - just enough to make it difficult and awkward to leave his EJ services. ...the lesson learnt is to never mingle business or personal finance with friendship.

Good advice overall, and worth noting that EJ's business model is to put an advisor on every street corner and get them involved in your personal life to leverage that "I'm like a member of your family" angle.