Longboat Retirement Solutions LLC

Why You Lost Money Today February 12, 2016

When the market as a whole goes down, people who own mutual funds that are “diversified” lose money (in general).  This includes most people who have an IRA or 401k through their employer, due to the fact that most institutional IRA’s or 401k’s are invested in mutual funds.

A true self directed retirement account lets you invest in individual stocks, precious metals, real estate, foreign markets, and more.

Large institutional banks advertise that they offer self directed accounts.  This is a sham.  These supposed self directed accounts only allow you to buy products that the bank that set it up for you sells – so that they can make money off of selling that product.  To me this represents a break in fiduciary responsibilities.

A Chevy dealer does not want to sell you a new Ford, even if the new Ford has better fuel mileage, better reliability, and costs less.  The Chevy dealer will sell you a Chevy, because that’s how he makes money – he makes a commission off of every Chevy he sells.  In fact the Chevy salesman is not allowed to sell a new Ford.

Similarly, a Fidelity guy will only sell products that he makes a commission off of – Fidelity products.  There may be an investment that he knows is a better fit for you, but if he makes no commission off of that sale, he won’t sell it.  In fact the Fidelity salesman (lets call him what he is) is not allowed to sell you a competitor’s product.

You are the only person in the world who has your best interest in mind when making decisions.  You may not always be right, but at least you are not trying to skim a small percentage of your savings, under the guise of “managing” it.

 

Why Asset Allocation Doesn’t Matter In The Long Run June 27, 2015

 

Fiduciary August 3, 2012

BY: Lars Forsberg
Longboat Retirement Solutions LLC
http://www.myselfdirectedretirement.com

Ever wonder why your financial advisor sold a fund or bought a particular stock?

Have you ever looked at your portfolio statement from your advisor and scratched your head, thinking what the…?

I met with someone the other day who received his monthly statement in the mail.  Glancing at the statement, he noticed something odd;  his “fiduciary” investment advisor sold some shares to cover his monthly maintenance fee.  Looking further, he noticed that his advisor charged him a fee to sell the shares…..wait for it….wait for it…..that was greater than the monthly maintenance fee.

Therefore, this guy, we’ll call him Joe, was charged a transaction fee, larger than his monthly fee, to sell shares to cover his monthly fee!  Awesome.  Wow.

So now Joe has lost some value in his portfolio of essentially worthless stock funds, paid a monthly maintenance fee, and paid a transaction fee.

This was a good day for his financial advisor.  He collected two fees from his customer.

This allowed his financial advisor to make next month’s payment on his BMW.

Unfortunately for the advisor, Joe decided to break free of the scam and self direct his retirement with Longboat.

Joe’s former advisor will now have to find another sucker to soak for fees to cover October’s car payment.

 

Why You Need to Take Control of Your Retirement Savings May 25, 2012

You, and only you have your best interests at heart.  If you think your broker is a “great guy“, or your financial advisor “really knows what he’s doing“, you need to ask yourself several questions.  Why did your financial advisor or broker become a financial advisor or broker?  How does this person make money?  Is this person more interested in making him or herself money, or making you money?  What is his motive?  Does she have bills to pay?  Does this person make more money from you or from someone who pays them commissions to make recommendations?  Are there kickbacks on the back end that may influence the recommendations that your advisor may give you?  Do you have full disclosure of any relationships that your advisor may have?  Really?  Are you sure?

You must consider the possibility that your investment advisor may be more interested in their profit than yours.

It should be abundantly clear that Wall Street’s motives are different than yours.

You must take the steps necessary to get control of your savings and your future.