Financial advisors are the clowns who are making huge profits off of your money no matter which way the market goes. A very small percentage of these “professionals” could not even predict the crash which happened (it was easy to see coming because of de-industrialization). Now they are pushing for investors to throw more into the stock market saying it’s a great time to buy. No matter how much any stock is, there are people buying and selling, putting commissions into the pockets of these middle men. How do they sleep at night when they steal hard earned money from people.
It seems the big lesson to everyone here is to make sure your investment “company” is licensed and regulated. Better yet, maybe stick with banks because the return may be lower, but you’ll still have the principal. Even then you have to be careful because the training to become a financial “adviser” is about a week, they learn to “sell” the latest fad the bank is offering, and usually independent thought is discouraged. They’ve all become sales oriented.
Edward Jones is a company that comes to mind as one with a shady history and past. Having been caught in a few controversies in their time, it would be advisable to avoid them. It’s not only because of these controversies, but it’s also because the majority of their so called financial advisors had previous careers where many of them were in non-finance related ones at that.
Edward Jones Fined $75 Million for Funds Fraud
The Securities and Exchange Commission, NASD and the NYSE fined Edward D. Jones & Co. $75 million for allegations of failures to supervise, maintain records and to adequately disclose revenue sharing payments that it received from a select group of mutual fund families it and its representatives recommended to its customers.
The firm was was also censured and required to disclose on its Web site information regarding revenue sharing payments and hire an independent consultant to review and make recommendations about the adequacy of Edward Jones’ disclosures.
The biggest drawback to working with Edward Jones is that it’s very much competitive. They hire tons of people knowing that 80% of them won’t work out (and they keep the clients from the cast offs). The biggest drawback to having an EJ advisor is that they were far more likely to be doing something completely unrelated as little as a year ago, and may very well not be an advisor in a year’s time. They also go the same route as Investors Group and shackle you to them via Defered Sales Charge fees.
In Canada, white collar crime pays. Not only that, but drug crimes pay, pretty much every type of crime pays and this is why criminals come here from Asia, Eastern Europe, South America; because the entire world knows Canada is soft on crime (this is documented).
That is why, is spite of an extradition treaty, the USA now refuses to return Canadians convicted of drug offences back to Canada to “serve out their sentences”. The reason is the Canadian system is one of rehabilitation. All the measures of success are measures of rehabilitation. So people get released as “rehabilitated” so that those in the system measure up well.
Before you call this information “conspiracy theory” or throw it out all together, try volunteering for the John Howard Society or as a Civilian member of a parole board. It will become obvious to you pretty quickly where the problem lies — in the justice system. Indeed, it seems to favor the criminals. The solution is easy. Split the system in 3: Punishment, Reparations, Rehabilitation.
Sentence offenders to all 3 phases: A Punishment phase that MUST be served in full – no parole, no time served, do the crime serve the time; A Reparations phase where they repay the victims of the crime and full repairations MUST be made – no shortucts, pay back the victims of your crime in FULL; A Rehabilitation phase – the current system of programs – programs MUST be taken, inmates that refuse to take programs stay in prision until they change their minds.
Bottom line is that it’s up to each person to do the research and invest wisely. Small amounts in high risk, large amounts in relatively safe, and don’t put all your money on one place. Common sense.