Tag Archives: scam charities

401K Brokerage Firms…..Kinda Like a Bad Charity

After a glorious vacation in Lake Tahoe, it is back to the grind of “life.” We’ve stayed at the same lake property the last 15-20 years.

So, enough of idyllic thoughts and places of retreat from normal life and on to much more exciting ventures!

I was reading (more like paging through) a prospectus from a very large brokerage services company, and their language in the prospectus reminded me of a very bad charity like some portrayed in a recent news report on questionably-run charities that actually give little back to the end users they purport to assist with your charity.

How is a brokerage firm like a bad charity? Certainly, brokerage firms are in the business to MAKE money and not give any away…what is charitable about that? Most of us who have been invested in the market assume that when our 401K or IRA funds purchase Wall Street financial products, that our broker is kinda like that charity in the sense that they will take that money and foster it, grow it, take care of it….all with no selfish interests on their part. I mean, their job is to make us more money, right? Make us more money regardless of how it affects their pocket books, right? Certainly, NEVER doing anything that would not be in our best interests, right? Continue reading