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Charles Schwab financial advice

Started by jademoose10 · · 👁 9 views · 167 replies

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casualtrucker7 casualtrucker7 Member
45 messages
joined Nov 2009
#101 ·
Antman, I’m with you on the general approach—but how do we actually navigate the legal side of things with the big financial firms, given the Federal Insurance Office guidelines? They’re going to be looking for licenses soon, and standard independent contractor agreements or service contracts just don't hold up legally in this industry.

The federal inspectors gave us a hard time about using contractors, which is funny because I guess hundreds of thousands of people in the US work under those exact types of external contracts.

What would an agency actually need to look like to represent a firm properly? Should it follow a framework similar to Vanguard or BlackRock, or something else entirely? Does anyone here have any insight on this?
ironangler22 ironangler22 Member
13 messages
joined Mar 2006
#102 ·
Meg said:I used to work at a big firm like Charles Schwab. All I can tell you is that everything there revolves around money—even though nobody actually makes any. You grind away and see zero profit... it's just sad, really. It’s heartbreaking how people in certain financial houses lure others in by painting this rosy picture where everything is perfect—when the reality is totally different 👎 from what they claim. And since we're talking about them—they always have this reputation for being solid, reliable, and somehow constantly turning a profit. A real company would never hide its losses, but they act like they’ve never had a bad day in their lives 😲—what a joke. From the jump, things felt off to me. Once I saw what was actually happening and where it was all heading, I quit. And honestly? To anyone who asked for my honest opinion, I told them straight up: I wouldn't recommend them to my worst enemy because the whole thing is a scam. That's my two cents... 🙄


I actually sat through one of those "consultation" sessions with all the fancy charts and graphs. Even though I made it clear I didn't have a steady income and was just a college student, they were still trying to push retirement plans on me. They even ran the numbers to show how tiny monthly contributions could turn into half a million in forty years. Everything sounded so smooth—and the advisor was super nice and easy on the eyes, too. I almost bit... 😁

But then, I caught myself at the last second. Like I said, I don't have a regular paycheck, and besides, I already have some savings put aside. But get this—they didn't just let me walk away. A few months later, they called me up to ask if I wanted to join the team. Another meeting, more blah blah blah, and suddenly they're mentioning a $3,000 salary $1667 for maybe 5 or 6 hours of work a week.
Advisor: "Any questions?" (at the end of the call)
Me: "Hmm, yeah. This pay—is it based on anything specific? Like, does it fluctuate between $3,000 and $5,000 depending on how many hours I put in?"
Advisor: "No, it's based on performance."
Me: "Hasta la vista!"

I'm pretty sure it would take me forever to actually make any real money working for a place like that...
steelmaker steelmaker Newcomer
6 messages
joined Jan 2006
#103 ·
Smiley said:steelmaker, I’m totally on board with the strategy, but how on earth do we handle the legal side of things with the financial firms, given the oversight from the Federal Insurance Office? They’re going to need licenses pretty soon, and those standard independent contractor agreements or service contracts just don't hold up legally in this line of work.

The IRS was giving us a hard time about using contractors, even though honestly, over a hundred thousand people in the US operate under similar external contracts...

What kind of agency structure should be used to represent a firm? Should we follow a model like State Farm or Allstate, or something else entirely? Does anyone here actually have some insight on this?

I suspect the IRS was breathing down your neck because you had more than ten contractors tied to a single licensed representative. Agencies are already struggling with that 1:10 ratio, and once the new regulations kick in, things are going to get even tougher since everyone will eventually be required to hold their own license. Now, those individual service contracts signed directly with an insurance carrier (like a savings & loan, a bank, or a mutual fund) are perfectly valid legally, mainly because the firm itself assumes responsibility for the agent's actions—at least for a certain period. Long story short, if you're running an agency, you really have to build a vetting process to identify which people are worth training for their licenses... otherwise, you'll just end up being ungrateful for them later.
Jessica Reyes9 Jessica Reyes9 Newcomer
2 messages
joined Feb 2006
#104 ·
I’ve been wondering about how much the recent changes to insurance laws are actually going to shake things up for financial advisors. Most of them are tied to big banks, insurance companies, pension fund managers, investment firms, or even those local savings and loan associations...
Does anyone here have any insight on this?
steelmaker steelmaker Newcomer
6 messages
joined Jan 2006
#105 ·
sapiens said:How are financial advisors actually going to be affected by these upcoming changes to insurance laws? Most of them work for banks, insurance companies, pension funds, investment firms, or savings associations...
Anyone have an idea?

Actually, all these updates are strictly limited to insurance agency and brokerage roles. For those working at banks, savings institutions, or investment funds, nothing is changing at all.
Jessica Reyes9 Jessica Reyes9 Newcomer
2 messages
joined Feb 2006
#106 ·
Thanks, steelmaker. Does that mean a licensed individual or a firm can only partner with one insurance carrier? What about those independent advisors who work with multiple different companies at once?
dustyscout53 dustyscout53 Regular
310 messages
joined Dec 2005
#107 ·
If you want actual good advice, you’ve gotta know how to ask the right questions first. And since, let's face it, maybe only 5% of people actually know how to frame a decent question—well, that means anyone could be a financial advisor, right?

The typical pitch from an advisor here usually goes something like this:

"You could put your money into stocks, but that's too risky. You could go with mutual funds, but that's also risky. But hey, if you tuck it all into a whole life insurance policy... now *that* is the way to go." 😁 😁 😁

Regarding this thread, I see there are some decent pros when it comes to housing savings accounts, but honestly, those are just a drop in the bucket compared to everything else out there. Besides, you aren't exactly going to ruin your life if you mess up a housing account—it's all just minor nuances—so does a financial advisor even matter much in that scenario? 😁

But look, if someone is truly serious about investing, they shouldn't be shunning advisors altogether. At the very least, there's a chance the advisor might actually listen to *your* suggestions, and then you end up helping the guy out.
steelmaker steelmaker Newcomer
6 messages
joined Jan 2006
#108 ·
Jessica Reyes9 said:Thanks, steelmaker. Does this mean an individual or a business holding a license would be restricted to working with just a single insurance provider? What happens to those independent advisors who work with multiple carriers?

There’s definitely some chatter about it, but whether it actually passes remains to be seen...
If a model like that ever goes through, it’s going to be a disaster for both the public and the professionals in the industry.
Just imagine if you walked into a grocery store and they were only allowed to sell you one specific brand of toothpaste.
It's bad for the store, it's bad for the shopper, and honestly, it isn't even good for the product itself.
Gerald Thomas11 Gerald Thomas11 Member
32 messages
joined May 2006
#109 ·
I once saved a single client over $65,000 just by providing the right advice and a solid range of services. One move was all it took.

Fair enough.
Financial planning within the complex web of the financial services industry is serious business. When done right, it benefits both the client and the advisor. Those who underestimate the weight of that responsibility—or dismiss the necessity of professional stock market guidance—clearly have a dysfunctional relationship with their own bank accounts.

Agreed.
And then there are the ones who think they can just "test" an agent... those are my favorite.

Glad you think so. 🙂
Every advisor needs a few years under their belt to actually know what they're doing. Everyone starts somewhere, and sure, rookies are going to trip up occasionally. But if someone starts lecturing me about financial planning when they only understand two or three basic fee structures—and they're clearly just pushing one specific product because it’s the only contract they know how to process—then they aren't advising. They're just selling.😬
Of course I’m going to run my own tests. If it doesn't pass, the contract is dead to me. I'll just take my business elsewhere and get a second opinion.

Advisor: Any questions?
Me: Hmm, there’s a catch. That salary—what actually determines if it hits $3,000 or $5,000? Is it just based on the hours clocked?
Advisor: No, I'm talking about performance.
Later.

Smart move. You saved yourself a lot of wasted time and effort by consulting that advisor at Charles Schwab.
If you think walking across that stage at graduation means landing a job where your performance doesn't actually matter, you're dead wrong. I learned that the hard way early in my career. You step into the workforce thinking the degree is a shield, but the market is much colder than academia. It’s all about results. Period.
Commission-based work is the only honest way to do it. You get exactly what you earn. No fluff, no handouts. Just pure meritocracy.
steelmaker steelmaker Newcomer
6 messages
joined Jan 2006
#110 ·
Gerald Thomas11 said:Respect

I’m glad we see eye to eye on this... 🙂
Every advisor needs a few years under their belt before they can actually do the job right. Everyone has to start somewhere, and let's face it, beginners are going to make mistakes. It's frustrating when someone starts lecturing you about financial planning when they only know two or three basic fee structures and just want to push a specific product because it's the only contract they know how to process...

You're absolutely right there, and I couldn't agree more. It’s honestly a disaster seeing people calling themselves financial advisors after attending a single weekend seminar. My critique regarding "testing an agent" was really aimed at those self-proclaimed geniuses who think they're the smartest person in the room—and unfortunately, there are plenty of them in our industry. I'm not sure if it's surprising or not, but those types who act like they "know everything" are usually the ones with the highest degrees. I have to admit, I occasionally get a little bit of enjoyment out of watching them turn bright red after just a couple of pointed questions. (By the way, I hold an advanced degree myself, but I'm fully aware that I have to keep learning and staying current every single day.)
darkpanther15 darkpanther15 Newcomer
3 messages
joined Aug 2006
#111 ·
Yesterday, I put out a call offering some complimentary financial planning sessions, and the response was immediate: people were already questioning if "free" actually meant free, suggesting there must be some hidden fee lurking in the shadows. It’s quite curious—why is there such a pervasive sense of skepticism toward these types of offers? Has anyone else here navigated this kind of cynicism when trying to provide value without an upfront price tag?
coppermarlin13 coppermarlin13 Active Member
57 messages
joined Aug 2006
#112 ·
darkpanther15 said:I posted an ad yesterday offering free financial planning advice... Why is everyone so skeptical about it?


To be honest, I’m pretty skeptical about your ad too. Why?

1. What’s the actual catch? What motivates you to give away financial advice for nothing?
2. What kind of credentials do you actually have to be providing this kind of guidance?
3. How are you footing the bill for all these ads if you aren't charging anything?
4. What kind of professional is someone who offers expert advice but doesn't want to make a dime from it?
5. ...and so on, and so forth...

Basically, who are you?
darkpanther15 darkpanther15 Newcomer
3 messages
joined Aug 2006
#113 ·
To be clear, I’m not a financial advisor myself; I work for them. They are the actual experts in the field. My role—since I’m still a student—is essentially to connect people with the right advisory services, as my compensation is tied to those successful connections. The consultations themselves are completely free for clients. The firm generates its revenue through commissions from banks, insurance companies, and investment funds whenever a client chooses to act on a recommendation and signs up for one of their products. What I actually do is identify individuals interested in receiving a full financial analysis; based on that data, our specialists build out a comprehensive client profile to pinpoint the most profitable solutions tailored to their needs. As for the ad, I just posted it here on the forum at no cost.
Are you perhaps interested in sitting down for a consultation?
coppermarlin13 coppermarlin13 Active Member
57 messages
joined Aug 2006
#114 ·
Not really. Why do you ask?
It’s just that I’ve got a pretty solid handle on my finances. I have my own bank and a dedicated personal banker at Charles Schwab to work with. On top of that, I’m comfortable running my own financial analyses, keeping an eye out for new products or services hitting the market, and—most importantly—vetting them to make sure they actually align with what I need.
Thanks!

P.S. Best of luck with everything! You might want to look into targeting small business owners and independent contractors. From what I can see, most of them are flying blind when it comes to managing things—whether it's finance, marketing, or other essentials—so you'd probably find a much more eager client base there.
darkpanther15 darkpanther15 Newcomer
3 messages
joined Aug 2006
#115 ·
Much appreciated!
coppermarlin13 coppermarlin13 Active Member
57 messages
joined Aug 2006
#116 ·
Just one last thought before I head out.
I actually just caught your little ad, and if you’ll allow me to offer a bit of advice, I think you might want to try a slightly different angle. It would be really effective to lead with a stronger personal introduction—something designed specifically to build rapport and earn the trust of whoever is reading it. When you're dealing with money, you're stepping into one of the most sensitive areas of anyone's life. Trust is an incredibly heavy thing to build; it takes a massive amount of effort to establish, but it can vanish in the blink of an eye. And once that bridge is burned? Getting it rebuilt is an uphill battle that most people simply don't have the energy to fight.
silverfox3 silverfox3 Newcomer
4 messages
joined Aug 2006
#117 ·
coppermarlin13 said:Not really. Why?
Because I have some financial literacy, I have my own bank, and I even have a dedicated personal banker. On top of that, I can run my own financial analyses, stay updated on new products and services hitting the market, and most importantly, pick the specific ones that actually fit my needs.
QUOTE]

I mean, would your personal banker ever suggest you move your loan to a different bank just because they had a better rate? I highly doubt it. I give you credit for everything else you say you can handle yourself, but it seems to me that most people don't really grasp how the financial markets work. They end up falling into all sorts of traps set by flashy bank advertisements, which is why I think this kind of consulting is actually useful. I’ve gone to a few sessions myself; they were free, informative, and didn't cost me a dime 😁. My only observation is that there's a massive gap in quality between one "expert" and the next when it comes to these analyses. After one session, I actually went around to a few different banks to check their loan terms, and I even found myself explaining to a colleague in the credit department why it might be smarter to avoid certain UBS products. Given those kinds of situations—and the fact that bank staff can sometimes be pretty clueless, having only memorized their own internal product list—I don't think it's a bad idea to risk an hour of your time to hear what an advisor has to say. It's not like you should follow their recommendations blindly, but you might pick up a few nuances to keep in mind for the next time your "brilliant" personal banker tries to talk you into something.
Here is a little bit of support for Jane. Good luck. 🙂
coppermarlin13 coppermarlin13 Active Member
57 messages
joined Aug 2006
#118 ·
silverfox3
Would your personal banker ever actually recommend switching to another bank just to get a better loan rate? I highly doubt it. I give you credit for everything else you say you can handle on your own said:

I honestly don't see what the issue is here.

I mean, you aren't going to go out hunting for a personal banker before you've even picked a bank, right? Or maybe some people will 😕! Come to think of it, someone might if they have enough trust in that specific individual to hand over their hard-earned cash. But at the end of the day, every personal banker follows the strict standards set by their firm—it's not like there's much room for creative interpretation.

I'm with you on one thing: most people struggle to spot high-quality financial products in such a crowded market. That’s where advisors really shine. I'm standing with Jane on this one.

However, if Jane wants to grow her client base, she has to master the art of the approach—learning how to present herself, how to represent her firm, and how to build genuine rapport with potential clients. And the reason she started this thread was because people were questioning her story, wasn't it? That suggests there's a gap somewhere—or more accurately, her employer might have missed teaching her those specific soft skills.

Jane, just keep pushing forward—don't let my comments discourage you (that truly wasn't my intention).
quietorca57 quietorca57 Newcomer
1 message
joined Nov 2006
#119 ·
roberta carlos said:I’m talking about my own experience with Charles Schwab. So far, I’ve dealt with their advisors three times, and all three were just interns—not even finance majors, more like engineering students or something...

Look, you literally said it yourself—you ran into a student. You just hit the wrong person! My experience with Charles Schwab was totally different because I actually ended up with a decent advisor who answered every single one of my questions, compared a few different funds, and mapped out all the pros and cons right there on paper... And honestly, I have no clue where this idea came from about only working with one firm—that’s just not true at all. The reality is they can offer you stuff you aren't going to find just walking up to a teller window. But hey, whatever, everyone’s entitled to their opinion... though I bet you’d feel differently if you hadn't stumbled upon a trainee. I mean, I’ve definitely run into advisors before whose style I couldn't stand either...
steelmaker steelmaker Newcomer
6 messages
joined Jan 2006
#120 ·
free said:If his whole livelihood depends on the commission from the advice he's trying to sell me, then we really don't have anything to talk about.

Actually, if that's his sole source of income, it could just as easily mean he's a top-tier professional. For instance, that's been my only way of making a living for about 15 years now...

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