Posts by neonrider7

Smiley said:I haven't come across any truly objective financial advisory services either. Let's dig into what kind of hurdles exist if someone tries to operate that way and what they actually look like.

And does this kind of agency or firm even exist outside of the US?

Let’s start by narrowing the scope down strictly to insurance. There are about 25 major players in the US market.
Would an agency like that even need all 25 of them?
You have to factor in client security. Personally, I wouldn't even bother seeking advice from an insurance provider that only operates out of two small offices and holds a measly 1% market share.

Smiley said:I’m with you on that last point. That’s how we should be talking. People shouldn't take everything personally like neonrider7 does—you know, where ego gets in the way and suddenly some profession like being an "advisor" is looked down upon just because someone graduated from MIT and thinks they're too good for it.

You put "some advisor" in quotes, but I didn't. Maybe I should rephrase: I wouldn't work as an advisor because it's just not my thing, and my current job is perfectly fine even if the paycheck isn't exactly massive $6667.
It wasn't about taking anything personally; it just rubbed me the wrong way seeing someone judge a professional's work without having any actual insight into what they do. It bothered me because I actually saw that whole advisory session in a very positive light.
As far as objectivity goes, for me, that was the most objective free advice I could get right now. Sure, it would be better if they represented every single player on the market, but look at the big picture—this firm operates across several countries, and if you look at their partner list, you'll see none of them operate exclusively within America. How would it look if their advisor in Germany told a client, "Hey, we partner with State Farm and PNC Bank"? If their partner is JPMorgan Chase instead of their own specific savings house, there’s almost certainly a damn good reason for it. Maybe the issue lies with the bank itself.

casualtrucker7 said:Frankie, hey, can you double-check if that promotional fee discount isn't actually 50%? It might not be the full 100%, but let us know what your people told you.

Look, just check it yourself if it bothers you that much. Maybe my memory is fuzzy, but honestly, whether it’s 50% or 100% is irrelevant here. You don't even get a 1% discount at Bank of America.
If you're trying to prove that working at Bank of America makes you somehow superior to the folks over at Edward Jones, you need a better argument, because you're definitely not going to win this one.

And while we're at it, don't say "my people"—they aren't yours.
I sat in for a consultation with them once, that's it. I didn't spend years grinding through an engineering degree at MIT just to end up doing some entry-level advisor's job.
My experience with them was fine, so I really don't get where you're coming from, especially since you haven't even seen how they operate or what they actually do. Go get a firsthand look before you start posting comments about their partners and their objectivity.

casualtrucker7 said:The stock deals we saw earlier involved waiving that 1% fee, but those were strictly limited-time offers. In those specific scenarios, they’re basically leaving money on the table, which is a total outlier.

I am 100% certain that Edward Jones isn't about to just walk away from their commissions. They'll squeeze every single cent out of those Bank of America contracts, regardless of whether that 1% fee is on the table or not.

casualtrucker7 said:Look, if you're going to talk about public commissions, at least be specific. If you're referring to the fee for setting up a home savings contract, Edward Jones doesn't set that rate—Bank of America does. That specific fee is standardized across all major institutions (NYSE, NASDAQ, Vanguard, and Bank of America) and sits right at 1% of the agreed amount.

That fee is pulled straight from the client's initial deposits; neither you nor I get to decide whether it gets collected or not. Now, if it’s actually true that clients signing through Edward Jones for Bank of America don't have to cough up that fee, then you need to explain how you're even getting paid for your work. Those fees are what fund the salaries for both employees and partners.

Unless, of course, you're out there working as a volunteer. I highly doubt it.

The 1% fee at Bank of America is waived until April 1st, 2006, provided the contract is signed through Edward Jones.
It's pretty obvious that Bank of America wants to stay competitive against Wells Fargo and Vanguard, who are also partners with Edward Jones.

As for how they collect their commission or where the money comes from, I haven't a clue. But you can bet your life Bank of America sees some kind of strategic advantage in offering terms like that.

You can argue all you want, but in this scenario, the Edward Jones advisors have the upper hand. It's simple: they have a better deal on the table than you do working over at Bank of America.

I'm sure they have similar arrangements in place with several other partners too.

Smiley said:Look, obviously I'm biased if I'm working for JP Morgan Chase, but a client isn't forced to accept our terms. I'm not just some random "financial advisor"; I'm a "JP Morgan Chase group financial advisor," which is something they know the second they walk through our doors. But when it comes to actually advising them on how to invest their money—which, let's be honest, is what financial advisors are actually paid to do—I tell them to go ahead and scout every single savings account and bank out there. I tell them to compare everything against our rates so they can decide what's best FOR THEM, not what's best for me. Got it?

It feels like you’re judging OVB without having any clue how they actually operate.
Let me break down how it works based on my own experience.
1. They introduce the firm and their partners and explain basically what they do.
2. They run some kind of analysis to figure out your specific goals and what you can actually afford.
3. You sit down with an advisor who presents the absolute best options available from their network. They explain how to maximize tax breaks. You can ask them anything under the sun regarding finances.
4. At the end of the day, the ball is in your court to decide whether to take the deal or not.

Regarding those JP Morgan Chase mortgage savings plans—if you really work at JP Morgan Chase, then you definitely know that signing a contract through OVB is actually more favorable for the client than doing it directly with JP Morgan Chase. You don't get hit with that 1% upfront commission. I guarantee you won't hear a single employee at JP Morgan Chase mention that.

casualtrucker7 said:I just don't see how any advice can be considered objective when OVB has contracts with a handful of savings banks (including mine, just recently) and certain insurance companies, rather than everyone in the market.

They have deals with three out of the four major housing savings associations, which, if you ask me, covers pretty much the whole field.

And as for insurance, they’ve got Allianz, Mercury, General, and Vienna Insurance Group. You really think they're going to go out of their way to sign a contract with Euroherac or an Adriatic firm? Highly unlikely.
Which big-name insurer do you think is actually missing from their lineup?

Look, companies like Amway or Herbalife are just peddling useless junk, but OVB? They actually represent those massive, household-name financial giants you see everywhere. They aren't out there trying to sell you their own homegrown insurance policies or some random investment fund they cooked up in a basement.

Meroving said:It’s always the same old song and dance with them—drawing up all these little charts and explaining things like we’re toddlers. That’s just how they do things in the States. It’s the typical American approach to client management. Way too much philosophy wrapped around incredibly simple concepts. I remember back when I first met one of their guys; he spent an entire hour on our initial consultation. In reality, all he needed to do was figure out what our goals were and what our budget looked like, then schedule a follow-up once the actual financial plan was ready. Instead, during that first meeting, he spent his breath lecturing me on why being wealthy is objectively better than being broke—I mean, really?! And to top it off, he hit me with the classic, "Please don't share what we discussed with your friends; I'd rather be the one to present this information to them directly." It was the exact same high-pressure pitch you hear from Amway or those multi-level marketing schemes!

When was the last time you visited OVB? Maybe they’ve actually grown up since then.

My advisor was actually decent. I was just at their office about a month ago. He walked me through exactly what I was looking for. Specifically, I wanted to talk about life insurance. The guy laid out four different policies they work with and basically told me to either pick one of those or go find something else entirely elsewhere. He wasn't pushy at all. His whole vibe was just, "Look, if you want it, take it; if not, no big deal."

Meroving said:Plus, I can't shake the feeling that this is just another flavor of those pyramid scheme scams—you know, the whole Amway or Herbalife circus. It’s that same exact vibe you get from seeing people pretend they’ve actually accomplished something in life when, in reality, they’re just total nobodies.

I honestly don't see how any of this affects you personally. From what I gathered, the advice is free, and nobody is forcing your hand to do anything at all.