Money managers
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[quote=deekay][quote=max] [quote=Gordon Ramsey]Have you ever read a prospectus?
Can you spell prospectus? DUMBASS!![/quote]I've never read a prospectus for a load fund. I have no interest in buying them or selling them.
[/quote] What if a load fund was the appropriate fund given a client's situation? By not selling a load fund, wouldn't you be going against your fiduciary responsibility?[/quote]
When would a load fund be an appropriate fund?
[quote=anonymous]Read the prospectus. There is a gross dealer concession. This all goes to the broker/dealer. The rep can get between none of that amount and all of it. Registered reps get paid by broker/dealers and not from fund companies.[/quote]
No, you read the prospectus. You are the one selling the crap. The American Funds example presented earlier implied that the rep got the entire 3.5%. What is the typical cut the rep would get?
This proves that independent RIAs should have worked as a registered rep before being on their own without knowing anything.
[quote=Gordon Ramsey]This proves that independent RIAs should have worked as a registered rep before being on their own without knowing anything.[/quote]
That’s really constructive. Why do I need to know everything about your line of work when I’m not interested in doing what you do? And since when does someone need experience as a salesman to be a successful adviser?
[quote=max] [quote=deekay][quote=max] [quote=Gordon Ramsey]Have you ever read a prospectus?
Can you spell prospectus? DUMBASS!![/quote]I've never read a prospectus for a load fund. I have no interest in buying them or selling them.
[/quote] What if a load fund was the appropriate fund given a client's situation? By not selling a load fund, wouldn't you be going against your fiduciary responsibility?[/quote]
When would a load fund be an appropriate fund?
[/quote] I know when they're appropriate. I thought you were a bad-ass money manager. Isn't that something you should know too?
[quote=Gordon Ramsey]This proves that independent RIAs should have worked as a registered rep before being on their own without knowing anything.[/quote]
There’s no question it would be a hell of a lot easier to start an RIA having had the experience as an IAR in someone elses office but I’ve overcome bigger challenges. The janitor that cleans an RIAs office knows more about how one operates than I do but so what. It’s like I said before, I can think outside the box.
[quote=deekay][quote=max] [quote=deekay][quote=max] [quote=Gordon Ramsey]Have you ever read a prospectus?
Can you spell prospectus? DUMBASS!![/quote]I've never read a prospectus for a load fund. I have no interest in buying them or selling them.
[/quote] What if a load fund was the appropriate fund given a client's situation? By not selling a load fund, wouldn't you be going against your fiduciary responsibility?[/quote]
When would a load fund be an appropriate fund?
[/quote] I know when they're appropriate. I thought you were a bad-ass money manager. Isn't that something you should know too?[/quote]
My point was, I've never seen a load fund that could do something a noload fund couldn't. It just costs more. I prefer index tracking funds and ETFs. Actively managed funds don't justify the extra expense over time.
So you can get business. Or are you going to put an ad in the paper that says "I help manage your money and earn more than others out there. Call today to increase your wealth ASAP!" People generally need to be convinced that what you can do is better than what they are already doing. If you can't do that then you'll be playing minesweeper in your office all day.[quote=Gordon Ramsey]This proves that independent RIAs should have worked as a registered rep before being on their own without knowing anything.[/quote]
That’s really constructive. Why do I need to know everything about your line of work when I’m not interested in doing what you do? And since when does someone need experience as a salesman to be a successful adviser?
I started in the P1 system of Ameriprise. I will fight to the death for my right to tell you that there are PLENTY of stupid people out there who have passed the series 7 AND series 66 exam.
I’ll give you the benefit of the doubt and assume you are registered. A stupid person cannot pass the series 7 or 65 exam. Therefore, you are not stupid. You cannot believe that a salesman is just as likely as a fiduciary to place the customers interests before his own.
[quote=anonymous]
You need to know much more about the registered rep’s line of work because either they will be your competion or they will be sending business your way if they are RRs and IARs. You need experience as a salesman because you may be the world's greatest advisor, but it you can't sell, you won't get clients. Another name for "world's greatest advisor who can't sell" is "failure". What personal challenges have you had that have been greater than starting an RIA practice from scratch without first being a registered rep or working as an IAR or working in the industry and without being a CPA or an attorney? I take back the question as asked. Starting an RIA practice is easy. Change RIA practice to "successful RIA practice". You sure appear to be confusing the topics of active vs. passive with load vs. no-load. You are correct that there is nothing that a load fund can do that a no-load can't do. You are incorrect about costs. A large investment into a load fund is much expensive for an investor than using a no-load fund and paying an advisory fee. You would know that if you didn't refuse to read a prospectus. I'm surprised that you don't believe in actively managed funds. Many people don't and that's fine, but I'm trying to figure out your value proposition. To not believe in active management should mean that you don't believe that a stock picker can add value. So, if I'm going to send business to you, it's not so you can put together the portfolio of stocks. You will simply be getting paid to put together a portfolio of no-load passive funds? You are waiting a year or two to show that you are better at this than others in bull and bear markets? Alternatively, active managers don't add value, but Max can? Please help me to understand. Max, we're laughing at you because none of what you are saying makes sense to people who understand the business. Here's your chance to help us to understand. [/quote]I never said I'm a stock picker. I learned 20 years ago to diversify away company and industry risk with the use of index tracking securities.
I use three vehicles to "invest" in the stock market, symbols SPY, SSO and SDS. Look them up. I have an excellent long term market timing model that I won't use with clients because it can't be validated in real time. I will swing trade for client accounts. I short-term trade for my own account. That's how I earn my living.
I don't condone an IA charging 2% per year to rebalance a passive portfolio. The most reputable financial planners such as Evensky & Katz, charge much less than that but they earn their money.
This is my last post. Good luck and have a nice day.
I wasn’t aware that SPY, SSO, and SDS have been around for 20 years. I thought ETF’s were relatively new.
[quote=Jebediah]I wasn’t aware that SPY, SSO, and SDS have been around for 20 years. I thought ETF’s were relatively new. [/quote]
20 years ago I invested in SP 500 index funds and speculated with OEX options which are derivative of the OEX 100.
This is my last post. Really
Liar.[quote=Jebediah]I wasn’t aware that SPY, SSO, and SDS have been around for 20 years. I thought ETF’s were relatively new. [/quote]
20 years ago I invested in SP 500 index funds and speculated with OEX options which are derivative of the OEX 100.
This is my last post. Really
It seems like your RIA idea will only have one of two results. 1) You will be successful with your trading and therefore, won’t need clients or 2) You won’t be successful and therefore, won’t be able to get clients.
[quote=anonymous]It seems like your RIA idea will only have one of two results. 1) You will be successful with your trading and therefore, won’t need clients or 2) You won’t be successful and therefore, won’t be able to get clients.[/quote]
I’m already successful with my trading and I don’t NEED clients. I’m bored and I’m looking for a new challenge. Besides, I want a lot more money than I need so I can give it away. What a concept, yes?
This is my last post. Really
Life insurance[quote=anonymous]It seems like your RIA idea will only have one of two results. 1) You will be successful with your trading and therefore, won’t need clients or 2) You won’t be successful and therefore, won’t be able to get clients.[/quote]
I’m already successful with my trading and I don’t NEED clients. I’m bored and I’m looking for a new challenge. Besides, I want a lot more money than I need so I can give it away. What a concept, yes?
This is my last post. Really
[quote=maxy]
[quote=anonymous]It seems like your RIA idea will only have one of two results. 1) You will be successful with your trading and therefore, won’t need clients or 2) You won’t be successful and therefore, won’t be able to get clients.[/quote]I’m already successful with my trading and I don’t NEED clients. I’m bored and I’m looking for a new challenge. Besides, I want a lot more money than I need so I can give it away. What a concept, yes?This is my last post. Really [/quote]
You’ve been around 20 years. Unlikely, given your defensiveness.
Really, indexing is your value add?