beergut
Senior Member
Joined: Jan 11, 2011 13:58:39 GMT -5
Posts: 2,184
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Post by beergut on Mar 24, 2016 17:21:55 GMT -5
I suspect the advisor at the bank probably asked about risk tolerance - maybe even had them do a little 'quiz' to give it some sort of definition. I bet the young woman in the example was very risk adverse (due to lack of knowledge/experience) so the 'script' the advisor was following indicated the choice of the bond funds. The advisor may or may not have been inclined to try assuage the fears of the young woman about 'risk'. After all you can lead a horse to water but you can't make them drink. Not only that, they can get into deep trouble if they encourage a risk-averse person to be more aggressive and get into stocks. The first market downturn, the client will be back screaming, "What happened to my money?" I agree with Arch, though- a bank is not a place to go for investment advice. My Dad tried REALLY hard to start up a second career as a financial advisor for a reputable brokerage. An older couple walked in one day asking about various types of investments and Dad led them through the features of each type. When he called to follow up, they said they were keeping the money at their bank. When their CDs expired and they wanted to take the $$ out to invest, the nice lady at the bank told them to go to a brokerage and talk with someone about investment alternatives, then when they knew what they wanted she could sell it to them. My immediate response would have been: "Why don't you go ahead and move your money over here with me, since investing seems a little bit beyond her? If she isn't able to explain to you the options available to you, and sends you to someone else (namely me) to explain what she doesn't understand, why keep your money with someone who (by her own admission) doesn't know what she is doing?"
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Deleted
Joined: May 6, 2024 8:03:46 GMT -5
Posts: 0
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Post by Deleted on Mar 24, 2016 19:54:29 GMT -5
My immediate response would have been: "Why don't you go ahead and move your money over here with me, since investing seems a little bit beyond her? If she isn't able to explain to you the options available to you, and sends you to someone else (namely me) to explain what she doesn't understand, why keep your money with someone who (by her own admission) doesn't know what she is doing?" I'm sure Dad tried a tactful version of that. I remember at least one other story of Dad finding someone through cold calling who had CDs about to renew. Dad would suggest a mutual fund and when the customer told their friendly local bank they'd be taking their $$ out of CDs and buying mutual funds through Dad, the banker would sell them mutual funds.
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OldCoyote
Senior Associate
Joined: Dec 21, 2010 10:34:48 GMT -5
Posts: 13,449
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Post by OldCoyote on Mar 24, 2016 22:57:21 GMT -5
I had an advisor, The fee's were so high , even with the market climbing at the time.
If I had put the money in a coffee can, no interest, I would have been $7000. richer
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