I see this practically every week. I look at someone’s investment statements, and there they are: mutual funds with sales charges called “loads” just to get invested in them, and they often exceed 5%!
When there are literally thousands of other mutual funds and Exchange-Traded Funds (ETFs) available that could be acceptable substitutes that have NO LOADS, why would someone need to invest in such products? Whose interests do you think were best served in that transaction, yours or the financial advisor who got paid that commission?
As a rule, you should never have to pay sales commissions just to get invested in the market. Some might argue that if a broker won’t get paid a commission, he won’t help the individual to begin with, and that individual will be worse off as a result.
Maybe. But that broker isn’t the only source of good investment advice out there. Morningstar is a great resource that often has educational articles and videos on what, why, and how to invest. AAII is not bad either. Or find a Robo Advisor that will charge an ultra low rate and broadly diversify you and invest you in some decent time-tested strategies.
Or, you can reach out to me. No, I probably won’t take you on as a client since my minimum is $100,000. But if you have a small investment account, I would be happy to speak with you and give you some guidance and suggestions for a good direction to take with your investments. And I won’t charge you anything. I mean it. Zippo. Zilch. Nada. It’s the small accounts that often need the most help, and unfortunately they’re the ones being exploited the most with fees. I’m here to fight that. I hate high fees, and no account should be charged ridiculous commissions just because it’s small.
17 years of investment management experience at your service. CFA designation. Successful hedge fund manager. Wealth Manager. Made money in the 2008 Financial Crisis for clients. I think that’s a pretty good offer.
Call me at (619) 888-4070 or email me at firstname.lastname@example.org. Tell me you saw this post on my website. It’ll help break the ice.
Rainier Trinidad, CFA
San Diego and Coronado’s Fiduciary Financial Advisor
Parabolic Asset Management
206 J Avenue
Coronado, CA 92118
Investment Risk Disclaimers: (i) Investments involve risk and are not guaranteed to appreciate, and (ii) Past performance is no guarantee of future results.