Do You Trust Your Broker?

BROKER TRUST

A good trustworthy broker is is hard to find.I had acomfortable retirement fund and retired in jan.2000.By the start of 2002 he had lost 25% of the portfolio.He seemed frozen as to what to do and reccomended to do nothig but hold on for the long term.He refused to sell anything.By the end Of 2000 my portfolio was only 50% of its value at the beginning of year.

I talked to an old family broker who was with a different company. He of course convinced me that other guy knew nothing about investing.I switched my investments to him and his company.Eventually recovered about 95%.

By mid 2007 things started down again.I got scared and told him we should move it all to cash. Again the same reasoning as the first broker came into play.Just hang on,your portfolio is diverified and you'll be fine.Now,he has lost more than 60%.

Im now 65 and really down.My wife and I know that time is becoming a factor.A quick recovery doesn't look to promising.

Anyway, I'm comvinced that most brokers have definate prorities;theirs first,yours last!

If things are getting scary,dont be afraid to move into cash.Listen to yourself,not your broker.He has made plenty from you.If you stay with him he'll make plenty more.

Just remember,preservation of your capitol is your priority.His is to keep your portfolio so he'll have income in the future.

shenk of WV @ Feb 21, 2009 18:32:21 PM

Believe It or Not - I Trust My Banker

As astonishing as this declaration is in this day and age, I am a retired military person who continues to bank with USAA and I trust them to remain good stewards of my "savings". That said, I wouldn't throw blind trust into any "investment" products, even through their institution, without studying it carefully, and monitoring it. I am a product of my grandparents' experience in 1931 of losing everything to dishonest lawyers, stockbrokers, and bankers. Dinosaur, yes, broke, no.

K. Daraa of OR @ Feb 21, 2009 02:24:56 AM