Quote from musclemoney:
So true. I want my Clients to make money and prsoper. I could care less about Merrill back then. It's really sad that "the big boys" have been allowed to get away with so much due to their sheer size, and "power." (look at what GS has been able to do in loading up the Govt. with their cronies.)
We (Independent Brokers and RIA's) are struggling right now due to the news "the big boys" make every day. I don't even want to mention some of the comments I've heard in the last Month from would-be Clients...:eek:
The average Client sadly lumps every Financial Advisor in the same category (it's not their fault. They don't know who's who...), and that's far from what is reality in 2008 with performance-based Independent Advisors vs. the big firms with an adjenda to make money on the backs of their clients.
When my Clients make money, I make money. I'm performance based, and that's a vast difference in the mentality of the big boys selling prop fund (loaded funds) garbage that pays a big commission up front, causing the "Advisor" (LOL!!! Basically a sales dog-far, far from Advisor) to never call them again as they're looking for the next commission. It's a viscious cycle... I feel for the retail investor who's simply wanting good advice, and performance so they can get where they want to go. NOT where the Broker wants to (financially) be...
I'm venturing to guess that the old school Broker is going to become a dinosaur in the next few years. And, they should if they're putting their interest IN FRONT of their trusting Clients!After all, who's money is it??????? It's the Clients!!! They earned it!! It's THEIR'S!!!!! The big boys forgot that years ago.
Sad...
I respect the people that are performance based. They are putting up real capital and earning their money.
I have ZERO problem with that system; it's the way it should be.
A lot of the hedgies say they're performance based, too, though, at 2/20 or 4/40 or whatever. The problem I see with that is that depending on the size of the account, even if they lose money on your behalf, they still get their base 2% or 4% or whatever.
Someone needs to come out and go with a system of purely marked to profits. I even think if someone has an ethical and strong performance history, clients wouldn't balk at being very generous, knowing a competent and honest professional will feast or famine based on their accuracy.
