Re: RIAs and IARs
Watchdog
5/8/2012 11:40:27 AM
InvestorWatchdog.com conducted a recent survey of investors. Less then 3% "believed" they knew the benefits of selecting RIAs and IARs who acknowledged their fiduciary status in writing.
A similar low percentage believed they knew RIA and IAR registrations permitted advisors to provide financial advice and ongong services for fees.
The same low percentage believed they knew non-RIAs/IARs were limited to selling investment products for commissions. They could not provide advice or ongoing services.
Wall Street wins when investors let personable sales reps dominate relationships and control the investment of their assets. Most investors are willing victims who react when it is too late.
Investors who don't want to play the game anymore have to take more responsibility for selecting, retaining, and terminating advisors for the right reasons.
Re: RIAs and IARs
Watchdog
5/8/2012 11:40:22 AM
InvestorWatchdog.com conducted a recent survey of investors. Less then 3% "believed" they knew the benefits of selecting RIAs and IARs who acknowledged their fiduciary status in writing.
A similar low percentage believed they knew RIA and IAR registrations permitted advisors to provide financial advice and ongong services for fees.
The same low percentage believed they knew non-RIAs/IARs were limited to selling investment products for commissions. They could not provide advice or ongoing services.
Wall Street wins when investors let personable sales reps dominate relationships and control the investment of their assets. Most investors are willing victims who react when it is too late.
Investors who don't want to play the game anymore have to take more responsibility for selecting, retaining, and terminating advisors for the right reasons.
Re: RIAs and IARs
Watchdog
5/8/2012 11:18:06 AM
The way we describe it at InvestorWatchdog.com is advisors are adept at using personalities and sales skills to forge relationships with investors. Once investors like them it is easy for the advisor to establish trust - people trust people they like. Once trust is established it is easy to convince investors they are experts which facilitates the sale of good and bad products.
Wall Street figured out the game decades ago when it began hiring representatives who had the best personalities. They also hire reps in their 30's because they "look" experienced.
Investors don't stand a chance.
Re: RIAs and IARs
Watchdog
5/8/2012 11:13:24 AM
Very few investors know the critical differences between real advisors and sales reps who masquerade as advisors. Plus, the Wall Street marketing machine is very adept at blurring differences when it sells investment products.
A perfect example is advisors (RIAs, IARs) are allowed to provide investment advice. Representatives are limited to providing sales recommendations. What is the difference between advice and recommendations? No wonder investors are confused.
Noreen,
I think that some poeple are just willing to take the risk to try and gett more of a return. I also think that many people might not do all the research that they should, and fall pray to "sales" people.
Re: RIAs and IARs
driven
5/8/2012 10:26:00 AM
I credit it to the charm factor. Salespeople tend to be persuasive and charming. They make you forget things like "fidiciary duty" in favor of thinking things like "wow, this is such a nice guy!"
If investors have more protection when they use the services of RIAs and IARs than other types of financial representatives, why doesn't everyone search them out? What's your thoughts?
Re: Should be no surprise
TelecomFreq
5/8/2012 9:24:00 AM
@tokyogai, I think you hit the nail right on the head. Investors have to be aware that when you work with a firm they are going to try and make money from you ever way you can. Sometimes its a win-win but all to often its not.
Should be no surprise
tokyogai
5/8/2012 8:51:09 AM
I don't think any investor should be surprised that their investment firm is doing things in their own self interest and to make money. It is great when the situation is a win-win, but this is not always the case. Investors need to do some of their own research and understand what they are buying. people will try to sell you many things- only you can decide what you want to buy. It truly is a case of buyer beware.
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