Monthly Archives: May 2012

Study Says Financial Advisors Often Work Against Their Clients’ Best Interests

By Lon Jefferies | Published: May 23, 2012
Financial advisors often work against their clients’ best interests if it means earning more in commissions, according to a recent study by the National Bureau of Economic Research (NBER). Specifically, “advisors encourage returns-chasing behavior and push for actively managed funds that have higher fees, even if the client starts with a well-diversified, low fee portfolio,” [...]
Posted in Uncategorized | Leave a comment

Guaranteed Income Annuities: The Holy Grail of Investments?

By Lon Jefferies | Published: May 16, 2012
I recently encountered a client who was anxious to liquidate his diversified IRA portfolio to invest in an annuity that guaranteed a set income throughout retirement. The client had been approached by an annuity salesman who touted an annuity guaranteeing an 8% return and even granting a 5.5% bonus just for investing in the product. [...]
Posted in Uncategorized | Leave a comment

Why You Should Not Trust Financial Advisors

By Lon Jefferies | Published: May 16, 2012
This month I received a fax from one of my clients requesting that I liquidate his IRA so that the funds could be invested in a guaranteed annuity product. In the letter, the client stated he was aware that market-driven investments have greater potential for growth but the annuity would provide him a guaranteed return. [...]
Posted in Uncategorized | Leave a comment