Mullooly Asset Management Videos

Your hard earned money is nothing to mess around with. So don’t hire the next Bernie Madoff! In this video, Tom and Brendan discuss some red flags to look for when hiring an investment advisor. Don’t wait until it’s too late, learn the warning signs that you should be looking for today.

One thing investors should have learned from the Bernie Madoff scandal is to be skeptical when one person owns and Investment Advisory firm and a brokerage company. This is one of several red flags to look for when hiring an investment advisor.

Tom also advises investors to keep an eye on their returns each year. Bernie Madoff’s returns were the same every year. It’s true that your returns will depend on your investment advisor and the market conditions, however returning the same amount year after year is very sketchy. Especially when those returns are very high.

If you can’t check your account activity and balance online, you should also take that as a warning sign. Clients should always have access to their account through whatever brokerage firm their money is invested through.

Be on the lookout for these and other red flags when hiring an investment advisor. Most importantly, don’t hire the next Bernie Madoff. When you begin working with a new investment advisor, make sure that you feel comfortable with him or her and their firm.

It is very important to remember that all financial media sources have their own agenda. Whether you’re watching TV, listening to the radio, or reading a newspaper article the author is sharing their personal opinion with you! This does not mean that you have to take their word as gospel. In fact, you should really pay attention to where you get your news from, and think about what their job is.

The individuals who work at these different financial media sources, like Marketwatch and Bloomberg, are paid to create an audience. This means that they want to capture your attention through any means possible. The financial media doesn’t know anything about your personal financial situation, and is not suited to give you investment advice. So when you watch any financial news outlet make sure to know their spin. Instead of trusting that they’re being 100% truthful with you, do a little research of your own. Form your own opinions, and consult with your investment advisor when you need a professional’s take on your personal financial situation.

In this week’s Mullooly Asset Management video Tom and Brendan talk about how stock brokers get paid. Plenty of people enter into investment agreements each year without truly understanding this vital point. Most investors understand that stock brokers earn commission on each transaction they make for a client. However, what most people don’t know is how that commission is divided between the brokerage firm and the broker. Knowing this information can help investors discern how stock brokers get paid. Understanding how stock brokers, financial planners, and fee-only investment advisors get paid can help you make a more informed decision about where to invest your money.

In the video Tom explains how higher producing brokers earn more commission than lower producing ones do. Meaning the higher producers might take home 40% of the commission you pay, while the lower producer might only get 25%. Stock brokers are classified by their firms, and paid accordingly. This puts pressure on them to push sales, and may potentially cloud their judgement when it comes to your investments. In the eyes of brokerage firms the better broker is the one who makes them more money, not the one who makes their clients more money. Clients of stock brokers are also classified by brokerage firms. Many firms are beginning to send clients with under $100,000 to call centers for their investment advice.

Tom and Brendan touch on all of these points in their weekly video. Make sure to tune in to learn how stock brokers get paid.

A big decision that many investors have to make is whether they want to work with a discount broker or full-service broker. There are plenty of differences between these two types of investment managers. Investors should do their homework and gather all the facts before choosing one or the other. If you need to learn more about discount brokerage firms or full-service brokerage firms, this Mullooly Asset Management video is for you!

For a detailed analysis of what to expect from a discount broker or full-service broker make sure to watch this video. The general differences that exist between these two investment managers have to do with fees and commissions. If you choose to work with a full-service brokerage firm there will be a lot of fees. Brokers at these big firms make as much as 2% when making trades inside of brokerage accounts. They also charge fees for many service based tasks like having an IRA or getting you a check for your gains. In contrast, discount brokers will cost you much less money. A trade typically costs about $10 when placed through most discount brokers. Things like having an IRA, getting a check, or getting a checkbook tend to be free through most discount brokerage firms.

Make sure to watch this week’s Mullooly Asset Management video to learn more about whether you should invest with a discount broker or full-service broker.