Fee Charging Snake Oil Salesmen
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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?
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.”
[quote=B24]Sorry Bobby, this one’s a non-starter.[/quote]
Can’t handle the truth?
[quote=Ferris Bueller] [quote=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?
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.”
[/quote]
I drive a 90K car, isn’t that cool![/quote]
Totally cool.
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.
[quote=Primo]
That is not warm hot dog water you taste.
[/quote]As soon as I figure out what this means, I’m gonna start using this line.
[quote=Vic Mackey]
[quote=B24]Sorry Bobby, this one’s a non-starter.[/quote]Can’t handle the truth?[/quote]
Not really.
[quote=B24] [quote=Vic Mackey]
[quote=B24]Sorry Bobby, this one’s a non-starter.[/quote]Can’t handle the truth?[/quote]
Not really. [/quote]
I respect your honesty. It’s hard to defend the indefensible.