Actually most non-commissioned financial advisers charge a percentage fee (aka AUM or Assets Under Management). In theory it’s supposed to align the investor and the adviser (account goes up, both get more money), but it can have its downfalls too.

Nope. Salespeople could sell things under the “suitability” rules, which said that the product(s) had to be OK for the client. Now more transactions/relationships fall under the “fiduciary” definition, which says that the advisor must act in the client’s best interest.

Don’t say you hate all financial planners - some of us are good people who have been doing right for clients for many years. :)

What’s more likely is that the small accounts will seek out the ever-increasing “robo-advisors” for a cost-effective solution. If someone with a small amount of assets wants help, an hourly planner can also be an option.

I haven’t seen anything about having to forfeit ill-gotten gains and pay a tax. The standard raises the bar from “suitability” to “fiduciary” in many cases. It’s the difference between someone selling you a suit that fits, to selling you a suit that looks good on you.

This will bring some clarity and improvement to investors, but not all the way. The “fiduciary” standard required for those of us who are a CFP® applies in more cases.

The social contracts that have been hit harder are retiree health benefits. Companies like IBM, the Detroit automakers, etc. offered health insurance for retirees similar to what the employees got. I had a client just retire from IBM in December (after 35+ years with them), and now they get a “stipend” of $3000/year…

Your co-worker was exhibiting classic behavior - people experience more pain with perceived loss than they experience happiness with gains.

Very well written explanation of a concept that most people have never even heard of!

As a financial planner for over 11 years, I can say 100% people do this ALL the time. Overcoming psychological issues with money is a big challenge we face, keeping them in when it’s in their best interest.

As a fan of the Mayday/Air Crash Investigations series, I remember this one. Here’s a YouTube link to the 1 hour show detailing this particular incident: (Titanic in the Sky)

Because that’s how the stock and bond markets work. If you want a guarantee on your principal, you cannot take any risk and you put it in a checking account. You will also not get any reward (in fact, due to inflation you will lose money over time).

Your trolling skills are impressive - sorry about your frustrations in life.

Such an interesting marketing campaign...”let’s focus on clients’ short-term reactions to investment performance”. Advisers can position your money to give you much greater chances of success in reaching your goals, but we cannot control the markets any more than a doctor can control how your body reacts to a cancer…

VOO is one piece of the puzzle, but much more is needed! Only 10-15% of my client’s portfolios are in the U.S. Large Company space that VOO occupies.

The best way to have $2 million from options trading is to start with $10 million. Even Drumph knows better!

Financial adviser doesn’t equal Wall Street. Some of us view our role as the buffer/translator between individuals and Wall Street!

Maybe this will be helpful to you when evaluating the right solution for you. This outlines the differences in cost, etc. for commissions, AUM fees, and flat retainer fees.

It is hard. Those who get good advice and have the ability to stay true to their strategy are the ones who win.

If you need it liquid, right now very few things are paying much in interest. Sometimes you can find some of the online banks (no bricks and mortar branches) can pay you more interest on cash, but right now even that’s not much (1% a year on $3k is $30/year).