Author Topic: PFA went ape-shit when I told him about index investing  (Read 17923 times)

Kaspian

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Re: PFA went ape-shit when I told him about index investing
« Reply #50 on: February 24, 2015, 11:25:53 AM »
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!" - Upton Sinclair

Of course your FI doesn't want you to go!  That's 2-3% a year of your money he doesn't get anymore.

Hayden Frys Mustache

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Re: PFA went ape-shit when I told him about index investing
« Reply #51 on: February 24, 2015, 07:53:05 PM »
heard the news about obama wanting to lower the fees? make the advisors actually look out for their clients? he invited bogle to talk about it
http://www.mcclatchydc.com/2015/02/23/257449/obama-to-announce-retirement-account.html

Feel good politics.

Nothings going to change.

That's not very Mustachian...

You're right, it won't change overnight, but if the people's clamoring gets loud enough, I wouldn't be surprised.

TreeTired

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Re: PFA went ape-shit when I told him about index investing
« Reply #52 on: February 25, 2015, 10:54:54 AM »
you asked.....
Quote
how do I cut this guy off in the cleanest way possible?

You Just slip out the back, Jack
Make a new plan, Stan
You don't need to be coy, Roy
Just get yourself free
Hop on the bus, Gus
You don't need to discuss much
Just drop off the key, Lee
And get yourself free

KD

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Re: PFA went ape-shit when I told him about index investing
« Reply #53 on: February 25, 2015, 04:06:38 PM »
Thanks for the flashback TreeTired!  Simon & Garfunkel, Fifty Ways To Leave Your Lover for you younger folks.

vehementi

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Re: PFA went ape-shit when I told him about index investing
« Reply #54 on: February 25, 2015, 07:42:28 PM »
Mailed my forms to questrade (Canadian discount broker) this week after months of procrastination.  I was thinking of sending polite note thanking them for the years of mutually beneficial business but after this thread I think I'll just let it go silently with questrade handling everything...

FarmerPete

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Re: PFA went ape-shit when I told him about index investing
« Reply #55 on: February 27, 2015, 08:39:28 AM »
Interesting read about what a PFA thinks his job is.  Specifically that his job is to underperform the market.  I don't think I'd argue with this if the underperforming really was from diversification, but it seems like it's normally from fees and chasing the past winners.

http://www.cnbc.com/id/102424602

hamildub

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Re: PFA went ape-shit when I told him about index investing
« Reply #56 on: March 02, 2015, 01:05:44 PM »
In Canada, to be able to sell this stuff (even in non-advisory roles) there's a whole section on Fiduciary Duty and Know Your Client. Throw that right back in their face if they get on you about moving accounts. Also, calculate the returns yourself because they like to cherry pick dates and use other

I was on track to get into portfolio management, but when I got to sit with some Certified Financial Planners I quickly learned that they're just mut fund hucksters who are really more interested in trying to sell you other products (insurance, mortgage/car loans). There's absolutely no focus on optimizing expenses during saving or retirement years. Also to make any money as a CFP you need a book of about 1000 clients, there's no way you could properly serve all of them.

The nail in coffin for me was that the more research I did, the more evidence pointed towards indexing. like so overwhelmingly so that I would never be able to sell a managed portfolio to someone without feeling sick.

Also, atleast in canada, the majority of Financial Advisors (the guy at the bank branch that sells mut funds) has only one course about investing, that the majority of people on these boards would pass easily.

Bob W

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Re: PFA went ape-shit when I told him about index investing
« Reply #57 on: March 02, 2015, 01:15:13 PM »
Run Forest run!