This topic really fires me up! Here is a little humorous video to lighten the mood. Warning its going to be 20 minutes so better put the sign on your desk saying you are “away at the toilet” or “away at lunch.”
I’m not a fan of Suze Orman/Dave Ramsey because of their scarcity/fugal money saving ideas but for some people who can’t seem to save two pennies to save their life, I guess it is better than nothing.
Suze’s WTF face @4:41 when the caller says their financial planner recommended buying an annuity. (that would net a 5% commission!)
@4:00 – Financial advisors make commissions and often put you in investments that are best for them.
Obama tried to do a good thing and pass a law where all financial professionals (like brokers and insurance agents) had to adhere to the “fiduciary” standards—meaning they’d have to work in your best interest if they were advising you on your retirement investments. But this died recently and there is no more fiduciary rule – https://www.wsj.com/articles/fiduciary-rule-dealt-blow-by-circuit-court-ruling-1521164915
Federal Department of Licencing discussion on conflicts of interest or kickbacks to the tune of $17 billion – https://www.dol.gov/newsroom/releases/ebsa/ebsa20160406-0
I don’t recommend any financial planner because I don’t take financial advice who is still working for a paycheck and not out of the rat race (lives in their parent’s basement) but if you must go with one of my friends or a flat-fee one – http://www.fpany.org/
I have heard of these guys/gals do their sales pitch and use fear-based words like “diversity”, “security” and “risk” where the 25-year-old kid is trying to sell random investments to me. And don’t get me started when I tried to tell them about the being your own bank concept. #FacePalm They just tried to sell a higher return (6% whoop-ti-doo) with no liquidity. Totally not what I was going for. Not saying these guys are bad people, they just don’t know and products of the Wall Street institutions.
“It’s like a lawyer who only sets you up with only a will (and not a living trust) because they know you will come to them for probate which will cost on average 10-30k for most people. Talk about BS!”
Note: When I call out financial planners I am also calling out brokers and insurance salespeople. Repeat never listen to a broker!
Share this with your co-workers & friends/family that still believe in the Easter Bunny (happy pre-Easter!) and have a false sense of security in what this financial planner says.
Who took all my money?!? We are living in the best time to be alive but WTF.