Fee Charging Snake Oil Salesmen

or Register to post new content in the forum

11 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Aug 22, 2008 10:32 pm

Are any of you esteemed fee chargers explaining the actual cost of
owning mutual funds, in addition to the fees that you pile on top?

ST CG Distributions tax - ordinary rate.
LT CG Distributions DIV Distributions - ordinary rate. Overpayment
of CG tax, upon liquidation,  because you failed to explain that the
above distributions are used to adjust the cost basis.  Turnover cost at 80 - 100 bps per 100% turnover. Cost of extra cash in the portfolio, used for redemptions, not earning equity returns. Cost of exposing the client to AMT and taxation of Soc. Sec. Benefits.
Loss of tax credits. Loss of tax deductions Your fees are only deductible to the extent that they exceed 2% AGI.
Taxes due to rebalancing. Although most of you don't do it because you don't want to pay ticket charges. Cost of probate - 3-5%. Cost of future performance due to you taking your fee.
And so on and on and on.... Well? Do you explain that the client has a 3-4% hurdle to get over before he makes any money and that you make money whether he wins or loses?

LOL!!!! You snake oil salesmen are so easy to steal assets from. "Mr. Prospect, did Indyone give you that line about how the two of you are on the same side of the table? Don't blame him...that's what his bosses tell him to say to get you to buy the funds that pay the firm extra money for being placed on their preferred vendor list. What I'm gonna do is get on the same side of the table with you and stop those additional and unnecessary fees."
Aug 22, 2008 10:49 pm

edit sorry i realized it's just an annuity wholesaler. 

Aug 22, 2008 10:52 pm

Sorry Bobby, this one's a non-starter.

Aug 23, 2008 12:08 am
B24:

Sorry Bobby, this one's a non-starter.



Can't handle the truth?

Aug 23, 2008 12:09 am
Ferris Bueller:
Vic Mackey:


   Are any of you esteemed fee chargers explaining the actual cost of

owning mutual funds, in addition to the fees that you pile on top?

ST CG Distributions tax - ordinary rate. LT CG Distributions DIV Distributions - ordinary rate. Overpayment

of CG tax, upon liquidation,  because you failed to explain that the

above distributions are used to adjust the cost basis.  Turnover cost at 80 - 100 bps per 100% turnover. Cost of extra cash in the portfolio, used for redemptions, not earning equity returns. Cost of exposing the client to AMT and taxation of Soc. Sec. Benefits. Loss of tax credits. Loss of tax deductions Your fees are only deductible to the extent that they exceed 2% AGI. Taxes due to rebalancing. Although most of you don't do it because you don't want to pay ticket charges. Cost of probate - 3-5%. Cost of future performance due to you taking your fee. And so on and on and on.... Well? Do you explain that the client has a 3-4% hurdle to get over before he makes any money and that you make money whether he wins or loses? LOL!!!! You snake oil salesmen are so easy to steal assets from. "Mr. Prospect, did Indyone give you that line about how the two of you are on the same side of the table? Don't blame him...that's what his bosses tell him to say to get you to buy the funds that pay the firm extra money for being placed on their preferred vendor list. What I'm gonna do is get on the same side of the table with you and stop those additional and unnecessary fees."





I drive a 90K car, isn't that cool!



Totally cool.

Aug 23, 2008 12:15 am

That is not warm hot dog water you taste.

Aug 23, 2008 12:16 pm

If Obama is elected, this will be a boon to VA sales. (Cap gains and dividend tax rates will double for those of you in Rio Linda) For the same 3% alot of wrap accounts end up charging in total, you can give the client tax deferral and guarantees. Wrap accounts seem unsuitable when compared to Va's, when you consider the total liquidity option and they are over 59 1/2.

Aug 23, 2008 12:26 pm
Primo:

That is not warm hot dog water you taste.




As soon as I figure out what this means, I'm gonna start using this line.

Aug 23, 2008 1:29 pm
Vic Mackey:
B24:

Sorry Bobby, this one's a non-starter.

Can't handle the truth?





Not really.

Aug 23, 2008 2:25 pm
B24:
Vic Mackey:
B24:

Sorry Bobby, this one's a non-starter.

Can't handle the truth?





Not really.



I respect your honesty. It's hard to defend the indefensible.

Aug 23, 2008 5:20 pm

I'm starting to agree with you. I think I've finally turned the corner, Bobby.