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
.