Opinions on stock brokers.

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Frank Manno, 18th Sep, 2017.

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  1. Frank Manno

    Frank Manno Well-Known Member

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    A lot of the time when I spoke to financial advisors and tell them that I just want a fee for service and that I just want a portfolio recommendation, they say that I am probably better off speaking with a broker.

    So I spoke to a broker today to get some advice on setting up a a portfolio . I explained that I want a passive income stream via LICs and that I don't want to do a lot of trading. So he is recommending ETF's over LIC's.. He was going on about the NTA figures associated with LICs and therefore recommending ETF's instead.

    Whats your opinion on this. The NTA on an LIC? Should I even be concerned and just buy regardless of timing?

    What about brokers? How is this guy going to make any money from me if I'm not going to be doing much trading at all? Its like a small yearly account fee and a few hundred dollars per trade.. But once the trading is done and the portfolio set up there shouldn't be much more for him to do I would think?


    -Frank
     
  2. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    The thing is, it looks like you already have a pretty clear idea of what you want: passive income stream via ETFs or LICs, buy and hold.
    You also probably have a reasonable idea of which LICs you have in mind - most likely the old school ones, with perhaps a little bit of mid-cap and international exposure?
    For these 2 segments I think you probably already have some idea of the vehicles you want (I think I saw you mention VGS in another post).
    Then there isn't much left to be decided, apart from the proportions to each.
     
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  3. Frank Manno

    Frank Manno Well-Known Member

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    Yep I have pretty much have some idea now of what i want, what you have listed above is pretty much spot on.

    But me being me, I want my decisions endorsed by an advisor just to make sure I'm not missing something :)

    I want an advisor to say 'Yep Frank that pretty much looks fine go ahead'.. or 'Looks ok except I'd buy this instead of that'..


    -Frank
     
  4. Brady

    Brady Well-Known Member

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    Sounds like you want someone to blame if it doesn't work out or call when things aren't going well.
    They can't control the market.
     
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  5. Anne11

    Anne11 Well-Known Member

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    At the end of the day, it is your money, not your broker's nor advisor's.

    No one cares as much about your money as you do.

    Maybe it is worthwhile to start small and build up your confidence and go from there.
     
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  6. Frank Manno

    Frank Manno Well-Known Member

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    No not at all.. I honestly just want someone to give me some input which will just boost my confidence on my choices. Like a second opinion of sorts.


    -Frank
     
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  7. Frank Manno

    Frank Manno Well-Known Member

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    Yep no mater what I'm doing exactly that.

    -Frank
     
  8. Sackie

    Sackie Well-Known Member Premium Member

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    All over the place.
    My personal opinion re most stock brokers:

     
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  9. Bunlee

    Bunlee Well-Known Member

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    Hi Frank

    In a few threads you have received significant wisdom from experienced investors. I'll share a few quotes I have heard over the years that may give you some context, 1st from Warren Buffet (paraphrased);

    1. Wall St - the only place where people go to in Limos to get advice from those that take the subway.

    2. A person with money meets a person with experience - the person with the experience gets the money and the person with the money gets the experience

    3. It was so cold on the subway even the stockbrokers had their hands in their own pockets.

    Don't make it any harder than it has to be, in fact, many posters here make it quite as easy as it really is. It just takes time and experience for us all to come to that realisation.

    All the best mate
     
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  10. pippen

    pippen Well-Known Member

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    Pure gold! That should be printed out and placed on a bathroom mirror for daily inspection for when you wake up in the morning and retire in the night!:D
     
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  11. Redwing

    Redwing Well-Known Member

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    Where are the Customers' Yachts?: Or, A Good Hard Look at Wall Street

    upload_2017-9-19_6-9-23.png

    “The burnt customer certainly prefers to believe that he has been robbed rather than that he has been a fool on the advice of fools.”
     
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  12. Redwing

    Redwing Well-Known Member

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    A bit harsh, but it's from the book

    For some light reading peruse the Motley Fool site, they have some great writers and many a stock is talked up. Now work out which one to buy

    Money Morning is another site worth reading to further confuse you
     
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  13. SatayKing

    SatayKing Well-Known Member

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    The trouble is you can ask 100 people for advice and receive 100 opinions of which all, some or none maybe correct. And you won't know.

    For me, I look at my cash levels, decide if I am ever going to need the money and, if not and I am comfortable within myself, then place the order and walk away. Job done.
     
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  14. Fargo

    Fargo Well-Known Member

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    Joe Magyer is the man with Lakehouse Capital Worth serious consideration He has an outstanding record. Was the best performing advisor in the USA before relocating to Australia. He was the leading advisor for the Motley fool pro service where he advised what shares to buy and what weighting. In the 2 years he was there he achieved an 82% return buying shares with a 5+ years view to get high returns. He left and started Lakehouse small companies fund which gave small investors access to companies only institutional investors get which has returned about 35% in the 12 months it has been going. He is launching another fund next month, Global Growth Fund, which will give easy and simple access to the best overseas companies with out all the taxation and paper work hassles. Lakehouse Capital
     
  15. willair

    willair Well-Known Member Premium Member

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    Maybe just follow a few very simple rules..
    Don't ever let your Wife -or Partner ever sign anything ,at least that way you only blame yourself..

    Make sure all your insurances are up to Date..

    Then put this on your white board and look at it each day.. Boldly Ignore any advice from Financial Planners
    one only has to go back to the old site and read what happened for those that did and still suffer,as they have no more chance of getting it right than you..In the end you are the one that ends up holding the can..
     
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  16. pwnitat0r

    pwnitat0r Well-Known Member

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    A stock broker will always tell you it's a great idea to buy, and a great idea to sell. They make money when you execute trades.

    There is no money in it on their behalf in recommending you hold.
     
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  17. Redwing

    Redwing Well-Known Member

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    The Financial Psychopath Next Door

    Interesting article

    Studies conducted by Canadian forensic psychologist Robert Hare indicate that about 1 percent of the general population can be categorized as psychopathic, but the prevalence rate in the financial services industry is 10 percent. And Christopher Bayer believes, based on his experience, that the rate is higher.

    Yet these personality traits present a dilemma, adds Richard Peterson, managing partner of MarketPsych, which does psychological and behavioral finance training for portfolio managers, analysts, and financial advisors. “You wouldn’t want to hire somebody who doesn’t have many of these traits because it’s a competitive business,” he says. “You don’t want to spend time moping about employees you have to lay off. You just have to lay people off and keep going.”

    Extreme risk taking/compulsive gambling is an addiction, and the first step to recovery is recognizing that a problem exists and that emotions impact behavior. An addict’s confidence and ethics gradually erode to a point where the rules no longer apply
     
  18. Redwing

    Redwing Well-Known Member

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    In September 2011, UBS announced it had lost US$2.3 billion due to rogue trading by 31-year-old Kweku Adoboli, a director of exchange-traded funds at the bank. Adoboli had entered into legitimate transactions but then entered fictitious hedges against them into UBS’s risk management system, thus breaching his risk limits. Having worked in the bank’s back office, his intimate knowledge of the systems allowed him to keep his activities a secret.

    In 2008, 31-year-old Jerome Kerviel lost US$6.7 billion through unauthorized dealing at Société Générale. He claimed the bank knew of his activities, but they did nothing to stop it as long as he was making money. His managers denied the allegation. Kerviel was first hired as a back-office employee in 2000.

    In 1995, Nick Leeson infamously brought down Barings Bank with £830 million in bad trades. Like Adoboli and Kerviel, Leeson was a back-office pro. During his stint in Singapore, he was functioning as general manager, head trader, and head of the back office. In published accounts, he was described as an accomplished liar adept at falsifying records, and fabricating letters and stories to deflect questions from management, auditors, and representatives of SIMEX.
     
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  19. Redwing

    Redwing Well-Known Member

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    I see Commsec has made a recent change

    Brokerage fee amount by transaction value

    Trade online and settle your trade to a CDIA1 or CommSec Margin Loan1

    $10.00 per trade (Up to and including $1,000)
     
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  20. Pier1

    Pier1 Well-Known Member

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    Lakehouse Capital is a Sydney-based funds management business launched, and wholly owned, by The Motley Fool Australia Pty Ltd (ACN 146 988 052)........................................................
    Just goes to show always DYOR
     
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