Big Bussiness - just can't trust the bastards

[boxy]

So, in the fall out of the GFC, the govt has announced they will ban financial institutions from paying commissions (read bribes) to financial advisers to get them to recommend their products to their customers.

But how the hell isn't this just a clear case of fraud and bribery under current laws? Financial advisers pushing inferior products on to the people who are paying them for their considered advice, for kickbacks from those offering the inferior products.

[IQSRLOW]

Define 'inferior' dude

[freediver]

I tried to line up a financial advisor recently. They all want to charge enourmous upfront fees nowdays. Same with stockbrokers. They all want to sit with you for a few hours and go every detail of your life. If I try to buy managed funds directly, they charge an even bigger cut.

[boxy]

Get used to it, freediver. No commissions from the other end, means a higher fee needs to be charged directly.

[IQSRLOW]

I tried to line up a financial advisor recently. They all want to charge enourmous upfront fees nowdays. Same with stockbrokers. They all want to sit with you for a few hours and go every detail of your life. If I try to buy managed funds directly, they charge an even bigger cut.

Do your company research and manage your shares directly. Its not that fucking hard. You are basically paying someone else to invest money into companies that THEY have researched and you are paying them for that privilege with no guarantee of performance.

I'll give you a few stock tips. I take paypal

[freediver]

Do your company research and manage your shares directly. Its not that fucking hard.

You've talked me out of it already.

You are basically paying someone else to invest money into companies that THEY have researched and you are paying them for that privilege with no guarantee of performance.

NO guarantee huh? OK maybe I should do it myself then.

[IQSRLOW]

You've talked me out of it already.

Look, investment is a gamble but as long as you do your due diligence you should be ok. Personally, I think for good capital gains returns then you may have missed the boat among bluechip shares as they are nearly back to previous levels. If you are willing to speculate, then there are still some opportunities, but above all else you need to realise what type of investor you are.

What amount, what risk, what weighting, etc all plays a hand in the make up of your portfolio. Give an example (doesn't have to be truthful) of what you have to invest (with the previous caveats)and I will give you examples of what I would invest in if I had that dosh.

Any money I have invested has all been direct...after I had investigated the companies or realised they were particularly undervalued considering their return and potential for capital gain. Bare in mind we are in a semi bull market so it is relatively easy for any idiot to make money. Don't. get. cocky.

NO guarantee huh? OK maybe I should do it myself then.

Find me an investment house that guarantees returns and I will find you bridge

[IQSRLOW]

Just to add... Unless you have $30-50K to play with, I wouldn't bother as you wouldn't be able to diversify enough to spread your risk

[freediver]

What about index trackers?

I will be borrowing to invest, so the gains are fairly marginal, but I do have a cheap loan.

[IQSRLOW]

What about index trackers?

Meh, not a fan.

They are for lazy investors