Are Financial Advisors responsible for notifying clients when the stock market falls like this week?

Question

I'm a recent investor and new to the investment world. As of last October, everything was going fine. I would get calls from my
investment firm letting me know things were fine. I was making money hand over fist. But...this week..when the market started
falling...did I get any calls? No! When it kept falling to what became the worse fall in a "LONG" time..did I get any calls? NO
I need to know what they are suppose to do..because I'm about to
yank may 7 digit portfolio right out from under their feet.

Answer 1

Dear Uncle,

As a financial advisor for 23 years, I did three things this week:

I sold an investment that was priced more than what it was worth.

I purchased several investments whose prices fell to levels where we needed to buy.

I communicated with my clients reasurring them about what was happening and how we were responding to what was going on. If they wanted to be left alone they didn't need to respond back. If they wanted to talk, we were certainly available.

I tend to talk more when things are unexpected or unsettling to clients and less when things are going rosy.

If you would like service such as this- please e-mail me and we can talk.

Good Luck,
Dana B. - President
www.thebarfieldgroup.com

Answer 2

First - they are not responsible for notifying you about a market correction. They are not responsible for telling you that the market is going up - that's just marketing on their part, making themselves look good. Calling you when your investments are dropping would make them look bad. It would be like you telling your boss how long you took having a 3 martini lunch, instead of how much work you got done.

Second - this is just a minor correction. It happens now and then. The smart money will stay put, or even put some more money into the market and pick up some bargains while stocks are "on sale". If you pull out now, you'll only lock in your losses.

Third - a recent investor, with a 7 digit portfolio? Do any of those 7 digits count numbers to the right of the decimal point?

Answer 3

Normally they call their clients when they want their clients to buy something. If the market is dropping like a rock, they probably do not believe they can convince you to buy anything. I am sort of surprised however that they did not call you to attempt to get you to sell something. Of course they might have considered that somewhat gauche if they had just convinced you to buy it the week before.

Maybe they were too busy handling calls from their other clients who wanted to bail out. That is a distinct possibility.

I do have some advice. Get into good stocks for the long term. When the market takes a drubbing that is a good time to pick up a few bargains. Having a cash position handy does make such a tactic possible. Financial advisors are responsible for only one thing, making commissions. You are responsible for your investments well being.

Answer 4

You dont have a seven digit portfolio. Lets be honest here. Educated investors understand that there are ups and downs and if you have seven digits, which you dont, you would be surrounded by a team of advisors with sound credentials who would be advising you on what to do. If you had that much, you would be buying munis anyway and wouldnt care what happened in the stock market. Remember this...the stock market makes people rich...the bond market keeps people rich. If you had seven digits, you would be in the bond market and that market decline wouldnt effect you at all.

What firm are you with anyway....Goldman, Merrill, UBS, Wachovia, JPM, Morgan or are you with Primerica or some other firm that hires college kids. Find a good broker in the big leagues and hire him. Ask him about managed money or fee based pricing...that way he has skin in the game.

Answer 5

They should at least called and let you know what happend and why the stock market went down that much. I don't have a 7 digit portfolio like yourself, only 6 digit. But my FA did call and ensure me that my portfolio is OK. He gave me some stories about end of quarter selling, China issue, oil price issue, blah blah blah. But at least he gave me a call. I am not worry too much about my portfolio though. Good luck on yours ;)

Answer 6

It depends on the type of account or investment relationship you have. However, no, advisors are not required to call all their clients when the market fell this week. It's your money - you watch things!!!

We didn't call any of our clients and we didn't need to. Our clients are in it for the long term.

Besides, Are you nuts? That's not his/her responsibility. It is their responsibility to use their best judgment to pick good investments. A 400+ point drop was a CORRECTION in the market and NOT their fault.

Answer 7

Ya 7 digits counting the 4 basis points.
heh

8o|

nm

Answer 8

most likly they keep your money in so they can sell theres first so they can make better money and then maybe sell yours your best bet is to do your own trading with online broker also read Does Your Broker Owe You Money? byDaniel R. Solin. Your getting screwed believe it. If you want to do online trading I have a the best broker my self. I don't have to worry about people screwing me over because if they do I will know it by checking the chart if there is a big sell before me.I also trade in real time check out Trade King if you decide you want account with them Email me at [e-mail] so that I can get my 50 for refering you please because I don't get unless I send you mail from the site and you click onit and setup account. also they have way more than what you can see looking at it with out account. They also covery you up 25 million.

Answer 9

I strongly suggest you to fire your Financial Advisor and hire me

I don't make calls.
I just make money.

Top 3 Answerer.