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Harmful Firms: See the Bait and Switch Most Banks Present

Pushing 'Sophistication' over CDs to Reap Fees

Banks are excellent institutions for holding cash, executing transactions, obtaining loans, and - when rates are attractive enough - putting money into federally insured CDs as part of a fixed income portfolio. However, utilizing a bank for an overall investment regimen is in most circumstances a costly mistake.

To compete for client assets, many bank offices  have investment counselors who will steer clients towards sales charge loaded mutual funds. Other banks contract with wealth management firms that present a more robust planning capability; but in the end they offer fee-laden products like wrap accounts, annuities, and loaded mutual funds. Still other banks have merged with full service broker dealers; clients seeking investment help at these banks will be handed over to a broker, whose compensation is for the most part determined by the amount of sales fees he or she can suck out of client accounts. Whether operating at an independent office, as part of a larger brokerage, or attached to a bank, a full service broker, regardless of his or her title, is a sales person charging a huge layer of expense you need not pay.

How Can Help

provides you with the projections and guidance you might find at the most savvy banks - without any of the associated fees or sales pressure. The core of bank profits comes from earning more interest on loans than is paid out on deposits. The profits from bank investment operations come entirely out of the accounts of investment clients. To reduce fees, grow assets more robustly, and actually gain sophistication, direct your investments outside of the banking world. Have the confidence to do so with .