Charles Schwab financial advice

banderas said:It’s pretty obvious how much practical financial knowledge that highly acclaimed economics professor Churchman actually has. To hell with his graphs and his textbooks...

And I wouldn't exactly call him one of the best professors at the business school either...🙄 😁 When it comes to Macroeconomics, Soumitra Sharma is a hundred times better. Pretty sure he even drives a Jaguar. 😁😁😁

Vojky said:First off, you won't find a single professor making sub-par money.

I wanted to add something else, and I actually regret not saying it sooner—if you're looking at an expert like that, I’d place a huge premium on specialized training from a top-tier foreign private university combined with actual international experience. Here in the States, professional financial services are a relatively young field, and frankly, I’m not convinced we have enough specialists who actually know what they're doing.

Mate Crkvenac had all of that: the overseas specialization, even guest professorships, so the results spoke for themselves. Skegro treated him like a prophet, despite having far less formal training. And you'll keep seeing those kinds of results as long as universities stick to their favorite mantra: "If theory and practice clash, ignore the practice."

Vojky said:In the States, personalized Fidelity Investments is still a relatively new field, and honestly, I’m not even sure we have enough actual experts out there.

Exactly. You see "financial advisor" popped up in job ads all the time, but let's be real—most of them are just insurance salesmen in fancy suits. 😁>

Skegro said:So, I’m asking again:

Would you honestly tell your dear neighbor Barica—who actually knows her way around money—to go seek advice from some "unqualified and untrained financial advisor," or would you just suggest she keeps her cash under the mattress?

I mean, I really don't know...

You have no idea how many people out there are being talked into dumping their savings into financial products that are total losers, only to find they're getting back less than they originally put in after just a short period...😢

I'm honestly afraid that a huge chunk of the financial advisory world is exactly like that, driven mostly by their own commissions while the client's best interests barely even cross their minds...👎

briskfalcon15 said:I know this for a fact. Working in an industry where these types of "financial advisors" play a major role, I see it constantly. They don't offer advice that benefits the client; they offer what nets them the highest commission.
...

I couldn't care less if the guy makes a buck, as long as I'm saving money.

briskfalcon15 said:... information is incredibly easy to access these days

Hardly. Maybe the US market is transparent enough, but I recently looked for new car insurance in Switzerland. I checked with my current provider, then asked another one I thought was cheap. The quotes were identical. Then I hit a website that functions just like a "financial advisor," and lo and behold, I got a much better deal. It listed about ten different companies—I could barely name three or four off the top of my head—and while it wasn't every insurer out there, it saved me money with zero effort. If I had searched systematically, I might have done better, but I feel like I would have wasted half a day for an uncertain result.

roberta carlos said:I’m talking about OBV from personal experience. I’ve dealt with their advisors three times now, and all three were just trained students—not even economics majors, but engineering types and such.

Listen, I graduated with an engineering degree myself, and I understand finance better than most economists.😠 😁

What matters is how fast you can grasp concepts and abstract data. Your major doesn't define your performance.

briskfalcon15 said:...once again, they prioritize their own commissions over the client's best interests (hard to blame them, it's how they pay the bills)

I played that game once. Told my Fidelity Investments advisor, "We split the commission, or there is no deal." He took it. The policy he sold ended up being quite decent—though I’d already done my homework on that part.

Second said:Listen, I have a degree in mechanical engineering, so I probably understand finance better than most economists.😠 😁

The key is being able to grasp concepts quickly and think abstractly; your major doesn't really dictate your career path.

There's no need to get worked up right away.
I guess you're just the exception that proves the rule.😉

Second said:I actually pulled this move once. I told my advisor at Charles Schwab, "We split the commission, or there is no deal." He went for it. The insurance policy he ended up selling was actually quite a good value, though I made sure to run the numbers myself beforehand.

I've definitely been in a similar spot where I negotiated through them, but I never just blindly followed their lead. If I were giving advice to briskfalcon15, I'd suggest doing all the legwork before handing anything over to an advisor. If you hand the reins to someone who doesn't know the ropes, they're almost certainly going to push whatever earns them the biggest payout... though occasionally, that happens to be a decent deal for the client too...

jademoose10 said:At the end of the day, a Charles Schwab advisor needs to build trust. You aren't going to win anyone over by lying through your teeth and claiming you're doing this for nothing. Just be upfront about how you benefit. Tell people what’s in it for you. Honestly, if you're transparent, I doubt anyone will actually care.

= It doesn't say the work is free; it says the consultation is free =

banderas 👍 👍 👍

Degrees? Certifications? Man, who even cares about all that nonsense.
For me, there’s really only one metric that matters—it’s how much money the guy giving me advice actually has in his own pocket. If his entire livelihood depends on scraping together commissions from people he's "advising," then we aren't even on the same planet. We have nothing to talk about.

I don't know, I'm honestly intrigued by all the vitriol being thrown at a profession whose entire job should just be bridging the gap for the average consumer—someone who just wants to set aside a little bit of money every now and then. To them, things like insurance, various savings accounts, or mutual funds are a complete mystery.
It’s pretty much delusional to expect someone like that to actually want to learn about investing, even though it would obviously benefit them.
When you're dealing with someone who lacks basic financial literacy, it’s incredibly hard for a Charles Schwab advisor to steer them right, regardless of how biased their product selection might be.
Sometimes, though, any advice is better than none at all.
There are so many people in that "uninformed" category that if you ran a complex survey, the results would probably shock you.
So, what's really wrong with a market finding a way to meet a human need?

It seems like people here view this profession through a much broader, more serious lens than just being a glorified middleman selling bank products and insurance or setting up a simple budget.
To me, it would be ridiculous for someone who is actually wealthy and knows how to make big money to take this job just because they enjoy the grind of heavy retail work. If they have a solid reputation, that retail side can pay decently, but we aren't talking about spectacular numbers here.

The services this profession offers are absolutely necessary for many, even if there's a huge group of people who don't need them and feel like they're being sold "snake oil."
But don't forget the massive crowd being sold "snake oil" for their entire lives—everything from complex financial engineering and predatory banking rates to ESG funds and their endless commissions. A decent, honest advisor would actually be expected to warn the client about the reality of the situation, the risks, the high costs, and the actual potential for profit.
That’s why this feels like a civilized way to keep the constant damage to a much smaller scale.

Hey Paul Walker8 :-) were you out? Thanks to everyone who weighed in. I value any opinion based on actual experience, and honestly, Paul Walker8 put everything into perspective :-)

Take this, for example: saving money.
It’s best when savings are actually planned. Most of the time, interest rates aren't the main point; it's about the perks tied to specific types of accounts.

Keeping cash in a standard bank account is a losing game. Low interest, endless fees, and your money is basically trapped.

Money market funds already offer around 5% returns. You can move your cash within 72 hours. No fees. No lock-up periods. Just liquidity.

An annuity or specialized housing fund could serve as basic savings for a few years, even if you aren't buying property immediately. Or, it can be used specifically to build credit for a mortgage, a house, or major renovations.

Annuities are a solid bet for anyone looking to secure a decent retirement income.

Life insurance isn't just about retirement; it protects your heirs if things go south. Some policies pay out specific amounts during the term—say, after 10 years, then every 5 years thereafter. There are also benefits like being able to take out loans against the policy, which can act as a substitute for a co-signer on a loan.

You can also save for your kids. With small monthly amounts, you can build up a significant sum they can use for college or a down payment on a home. It’s also the only way to ensure the child is covered if a parent becomes disabled.

Then there are structured plans where a monthly amount is split across different types of savings, funds, or insurance. These often leverage tax incentives or government credits to maximize wealth, health coverage, and other perks.

Some people worry about which firm is behind the product. The best metric? Look for a company that has been around for at least 100 or 150 years—something that survived at least one World War. Remember the Twin Towers? The first news reports regarding finances were that the insurance covering those buildings and offices would collapse. They didn't.

Some claim there's only one big player pushing certain products.
But what if I told you that only one firm in the USA actually meets your specific needs? Companies update their programs based on market demand. Unfortunately, there is only one firm in the USA that includes insurance coverage for accidents defined under the American Traffic Law in its general terms.
Basically, if you drive—whether professionally or just a lot for personal use—you don't have much choice if you want to be covered while driving. That isn't "pushing" a product; it's pointing out what is actually available on the market.

The same goes for children's programs. Only one firm in the US offers a plan where the child gets a head start in adulthood while simultaneously ensuring the kid is protected if the parents face disability. You have to point out that such an option exists.

Or, say you need a loan and everyone refuses to be your co-signer. One specific insurer currently offers a program where death benefits are set at 300% of the base, which is exactly what the banks care about.

Different firms, different programs. Honestly, I’d be thrilled if we had more competitive options to choose from.

roberta carlos said:What kind of "wandering around" are you talking about? Everything is online if you actually know how to look for it.

The reality is that while the internet is full of noise, it lacks the hard data needed for actual calculations.

Does anyone here actually use services from places like Charles Schwab? I’m curious—what’s the deal? Has anyone actually seen any real results from it, or is it all just noise? And honestly, what's the catch? If they’re offering this advice for free, there’s gotta be some kind of angle, right? Like, what are they actually getting out of the whole thing?

They’re essentially just chasing commission checks from banks and insurance companies, which makes their objectivity pretty questionable at best. It’s always the same cookie-cutter advice for everyone. In my generation, we all ended up getting burned by Wells Fargo savings plans and Prudential life insurance policies. They aren't actually looking at your specific needs or financial situation; they just try to shove the exact same products down everyone's throat.

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

ThompsonOfMeriath said:Is anyone actually using financial advisory services? (like Edward Jones, for example). What’s the verdict? Did it actually help? And what’s the catch if the advice is free?

Financial planning can be useful, provided you stumble upon someone competent. Firms like Edward Jones offer free advice, but they make their money on insurance commissions once they close you. They stay as objective as they can, given they usually have contracts with maybe three or four major providers.
The Federal Reserve mortgage rates were the best around until recently, so I'm not surprised Meroving missed his window there. As for Allianz, it seems like an entire generation was stuck with the same one advisor who didn't know how to sell anything else. Honestly, it's better to walk in there and say nothing than to buy some policy from an insurance rep who only knows how to praise himself and hasn't a clue about the rest of the market.

Eventually, once our laws clearly define who is allowed to act as an advisor—and when those advisors can actually offer a full spectrum of products—things might settle down.
Besides Edward Jones, you've got AWD, bonus +, and Orbis...

Thanks... So, I actually sat through my first session with Charles Schwab, and honestly, the advisor seemed alright—not like one of those aggressive sharks who won't let you breathe. She didn't explicitly lay out all the fee structures upfront, though, but I caught the drift that there’s some kind of insurance commission and whatnot baked into the deal. I’m planning on putting money into life insurance anyway, so I’m hoping I can at least squeeze some actual value out of her advice. Does anyone here have any long-term experience with this? Like, once they’ve already talked you into the insurance and all that, can you actually go back to them for real guidance, or are you just stuck?

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.