Posted At : September 14, 2009 11:27 AM
There are tremendous advantages to working with an independent Investment Advisor that works directly for you, vs. working for the brokerage company just for the name. More evidence of this was seen recently as several “brokers” put further constraints on the types of investments investors can own. Many already have significant restrictions on what their brokers can buy for their clients, regardless of what the client wants or what is right for them. In July Edward Jones added certain leveraged ETF’s to the restriction list. That was followed suit by Smith Barney Morgan Stanly in August. Understand that I am not suggesting leveraged funds, but they do serve a very important purpose and investors should not be restricted from using them. During periods of extreme market volatility or big drops like last fall, these funds were critical in protecting investor’s portfolios against losses and many money managers like me would not want to have to do without them. If you have enough money to work with an independent money manager who works for you, and not a company, you should always do so.
Regards – Keith Springer