Starting to think retirement planning is a scam

Discussion in 'Bad Dog Cafe' started by doghouseman, Oct 4, 2021.

  1. doghouseman

    doghouseman Tele-Holic

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    in your head man....
    These financial advisor companies, even the big ones, seem to suck you in with their "planning" capabilities - but they really want to sell you products, ESPECIALLY annuities.

    I have run the numbers on annuities and they seem like a real joke. Guaranteed income at a price.

    Seems like they get people to be scared or uncertain about their retirement and use that situation to sell stuff that really isn't a good deal.

    Just a PSA for you kids.
     
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  2. Boreas

    Boreas Poster Extraordinaire

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    Not only do they want to sell you stuff (that makes them money), they like moving it around (which also makes them money). If you can, get a fiduciary. Personally, I manage my own because I have very little money. The pros don't even want to speak to me!
     
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  3. archetype

    archetype Fiend of Leo's Ad Free Member

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    Depends on the business practices of the parent company and even more on the financial planner. I'm outside of Buffalo, NY, but still use my Edward Jones financial planner in Indianapolis, IN. She's that good. She doesn't care that I'm a small-time investor and actively manages my accounts. She believes in fiduciary duty.

    A good one is hard to find and I've cycled through a few. I'm satisified with how Edward Jones works and more than pleased with the financial planner.
     
  4. doghouseman

    doghouseman Tele-Holic

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    in your head man....
    Well, you almost have to manage your own money or you will get ripped off.

    I was amazed when one "Financial advisor" from a well know company, that will remain name-less, said to me, "are you sure your pension is going to last you a lifetime??"!!

    It is a freaking pension!! Scare tactics.... Gee... what if my pension doesn't last a lifetime???... I better get one of your annuities just in case...... give me 100 a month for my 200K, that sounds like a great deal.
     
  5. SixStringSlinger

    SixStringSlinger Poster Extraordinaire

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    Always good to consider what the other guy's benefit is. What he's selling may or may not help you, but he's only selling it because it will help him.

    Doesn't necessarily make him and evil SOB (though he may be!), but considering what his benefit is can be helpful.
     
  6. doghouseman

    doghouseman Tele-Holic

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    in your head man....
    Yes, I have asked all my friends and colleagues, most are doing it themselves. If they have someone they use, they are not taking new clients.
     
  7. nickmsmith

    nickmsmith Tele-Holic

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    Depends entirely on the advisor you’re working with. My parents advisor has done stellar work. Very trustworthy guy.

    it’s not a scam, but your results will vary depending on how competent your advisor is. I’ve seen some that I wouldn’t trust with a 10 dollar bill.

    Like everything else, some people are competent and will look out for their clients. Some would be better served selling used cars.
     
  8. Sax-son

    Sax-son Tele-Afflicted

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    Whatever you invest in, you need to have a reasonable return on you investment. I have had a 401k portfolio that has done better than anticipated. However, I know people who never look at their investments. They don't have a clue whenever you ask them. You have to pay attention and get savvy, make moves when something isn't working out to expectations. Time will start running out the closer you get to retirement age. Don't get caught unprepared. The window of opportunity starts to close the older you get.
     
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  9. ce24

    ce24 Poster Extraordinaire

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    Well...I have annuities that pay me monthly and still increase in value. can only go up... Never down. Mutual funds that keep increasing..... And straight up market accounts.... Diversify is the key... Also when I pass it all goes to my kids... The investment company doesn't get it.
     
  10. doghouseman

    doghouseman Tele-Holic

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    in your head man....
    I guess I am thinking of the majority here. Sure there are good used car salesmen... but..... what are the majority like???
     
  11. ChicknPickn

    ChicknPickn Tele-Afflicted Silver Supporter

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    Work with an independent Certified Financial Planner. Totally different world. There is no pressure on independents to sell "products." Stay away from the big names that do big advertising. It's not easy to become a CFP, which is why so many advisors haven't received that designation. Many have worked with major brokerage houses before going out on their own, or into small partnerships.

    https://cfp.net
     
  12. jvin248

    jvin248 Doctor of Teleocity

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    One of those fancy FED executives, you know the ones setting interest rates and printing cash, is currently sitting with half their savings in cash and moved from growth stocks to a fund that is more stable in volatile markets.

    Think he might know what's ahead?

    .
     
  13. Mike Simpson

    Mike Simpson Doctor of Teleocity

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    Retirement planners use the scare tactic of telling people they can't afford to retire to keep people working and giving their money to the retirement planners. Nobody can help anyone if they don't save and haven't already saved money. I retired in 2017 even though some planners said I didn't have enough to live on and I been doing it for four years. I rolled my 401k into an IRA and retired "early".

    I have told this to anyone that will listen for years. You can't retire if you keep borrowing money for crap you don't need. Stop buying new cars and drive a paid for car. Stop carrying any balance on any credit card. Cancel all that crap you don't need that we didn't used to have anyway like cable TV and any other subscription service that is bleeding money out of you. You shouldn't be paying interest on anything but a house payment. Save your money.
     
  14. jkingma

    jkingma Super Moderator Staff Member

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    I also deal with Edward Jones and have nothing bad to say. They are honest and upfront and have made me a lot of money for my retirement.
     
  15. regularslinky

    regularslinky Tele-Afflicted

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    If you are going to get professional advice, I would strongly advise a "fee for service" or "fee-based" arrangement - where you pay them for advice, period. NOT a "commission" arrangement where the advisor gets a percentage of your return.

    Why? Because while your $100k may be your entire life savings, it is a fraction of a percentage of the "assets under management" that your commission-based advisor manages. The advisor's risk tolerance in that situation is MUCH higher than yours. Yes, your advisor is supposed to act as a fiduciary and do what is best for you, and no doubt many do just that. But commission-based advisors have an incentive to swing for the fences (and miss) with your money. I've seen it happen.
     
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  16. superjam144

    superjam144 Tele-Afflicted

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    I started a little nest egg. My money already doubled. Mutual funds. I wonder how much help advisors really offer. I do my own online.

    But it's a construction nest egg, I'm eventually going to spend it all on Reno work.

    My union pension/annuity is my end game plan.
     
  17. schmee

    schmee Doctor of Teleocity Silver Supporter

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    I don't know about how much hard selling I've seen, but realistically, these people are often no better at making more money than you or me. IME they are better at losing your money via their fees. Or just sitting while the market goes down 35-40%. Where are they when you should get out?
    It is always "this percentage of this and that percentage of that"... "But if you want you can change to ....."
    There's no magic sauce.
    Use your head, don't get greedy, take a profit when it's enough for you and sit on it.
     
  18. FuncleManson

    FuncleManson Tele-Meister

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    The financial advisor I've worked with for 20+ years has been great. I say worked with because, yes, you need to know your stuff as well. I made (seriously) very little money in my working lifetime and was able to retire in June five days before my 57th birthday.

    And I own an annuity. I purchased it because I was maxing out my IRA contributions (no pension) and was looking for another tax-advantaged place to put my money. I've owned it for 22 years and it's about quadrupled in value. Not a huge return, but a solid conservative investment. When the time comes to draw from it, I don't plan on taking guaranteed income.

    The only thing my guy has tried to sell me is long-term care insurance, but I made it clear that I'm not interested.

    All-in-all I've got no complaints, but YMMV.
     
  19. glenlivet

    glenlivet Tele-Afflicted

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    Yep...who you pick makes all the difference. As others have said...find someone that is willing to act as a fiduciary (first and foremost).
    Managing your own is an option, but, it may not be the best option.
    At some point, somewhere down the road, you may find that's it's time to turn it over to someone else...kind of a good idea to make the decision of "who" now...rather then later.

    You need to find a finical person that is at your speed, and understands your personal risk level and long term goals.
     
  20. schmee

    schmee Doctor of Teleocity Silver Supporter

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    There's the rub. If this is recent..... it's all been on a roll. Big profits made the last two years.
    The trouble is, it WILL go down 35-40% at some point.
    Took me decades to learn to "take a profit" at 35-40% and sit on it. Get greedy and you just sit and lose all that profit and start over....
     
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