How a Crooked Accountant and Pension Planner Led Me to Take Control of My Financial Future
I had lots of commission fuelled bad advice from so called ‘financial advisors’.However one piece of advice really sticks out as the worst and also the turning point in my investment life.
The first part of the scam was my crooked accountant recommending an Executive Pension Plan at around age 34.
A pension planner was wheeled into my office and I was signed up and within a few days was then paying 250 GBP/Mth into this wizard investment that would give me a pension at age 60 totalling a zillion GBP p.a. OK first two rip offs, crooked accountant got a nice lump sum and commission for the next 10 years and pension planner got a lifetime rake off of everything I paid into the plan. In fact for the first two years all of the contributions I was making went into their pockets.
Fast forward a few years and the pension planner is back and well guess what my plan is underperforming so I need to increase the payments to 1,000 GBP per month. Holy shit ! I sign the papers and away we go. Now being curious, I do some investigation about how much commission I was paying. For the next two years half of my extra payment goes straight to the pension guy.
That was 9,000 GBP so I could see where my pension was going, exactly nowhere except into the advisors trouser pocket. Well that was it payments stopped and I realised I was being ripped off on everything, pension, investment plans, insurance the whole nine yards. Roll on 6 months I had my own pension fund and I was the trustee, I also had an insurance broker business with a very important client, me.
I never looked back and educated myself and will never ever in a million years take any shit from so called financial advisors. Look after your own money because if these guys were any good they would not need money from a loser like you. Remember Bernie Madhoff, there are plenty more out there.
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He is a new friend
He is a long-lost relative
He approached you in church with a Bible in hand
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He is addicted to something that is expensive
The name of his company includes the name of any of the Founding Fathers, any prestigious US or British University or sounds like it is affiliated with Veterans or the US government
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I recently started seeing a financial advisor at First Command I met through a mutual family friend. The advisor is obviously very knowledgeable about retirement and investing, but I can't help but think the funds they are suggesting I invest in are more for their profit than my well-being.
They suggested a couple of accounts through Fidelity Advisor that have large percentages to invest in (some of the percentage goes to the advisor). The funds have a good history, but I can't tell if it's a smart move for me or if they are just trying to profit. Additionally, the advisor suggested a whole-life insurance plan.
They explained how they profit from it (basically, the cash value goes to them the first 2 years), but it still seems like a good plan to me.
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