(07-30-2019, 03:10 PM)jagibelieve Wrote:

(07-30-2019, 08:46 AM)Predator Wrote: I have no idea what point this rambling post is supposed to make. It's just obvious how little you actually know about the financial industry.

You and me both.  What exactly is an "impersonal" mutual fund?

I am by no means a professional investor, though I have done well managing my own money.  Could I have probably done more by hiring a professional adviser?  Probably absolutely.  The thing is, in my mind a financial adviser is going to work in their client's best interest as well as their own interest.  Better "rate of return for the client" = "better commission" for the professional (it's how they earn their living).  Also, if the adviser is doing a good job with their client's accounts their client(s) are more likely to recommend them (new business) to others.

It's called the free market (ie. Capitalism).

An impersonal mutual fund is the kind where you call the general line for Schwab and you get helped by whoever picks up, it'll be someone different every time.

A more personal arrangement is where you have your own broker or dealer, same person every time.

Commissions do not usually violate the fiduciary principle. The fiduciary principle still allows the person or company who helps you to do well while you do well. They are allowed to take a reasonable transaction fee and even to keep a reasonable percentage of your earnings as their commission, as long as both things are disclosed up front.  But they are not allowed to accept kickbacks or favors from their vendors. And they must be willing to discuss all options that a client is considering on a level playing field, not deceptively try to steer the client into something with low returns but good kickbacks.

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