IRA is coming due

[CountAllVotes]

It's been hanging in CD's for the past 7 years @ 2.76%. I did not make a fortune but I did not lose anything either.

That said, I called up my credit union to inquire about what sorts of options I may have for my IRA.

Last night I get this call from a place far away in response to my inquiry.

This guy wanted me to give it all to him and he'd get 1% of the profits. I was leary of him and then it began ... those emails ! Those emails !! Hillary !! SAD !!! Sad !! And that lying Russia B.S., that was next.

I damn near hung-up on this freak but let him continue on with his spiel!

I didn't call to hear the words of a political hack!

Is this even legal at all?

He was promising 8-9%! Uh huh ...

I did remind him that the economy crashed in 2008/2009 and it could happen again soon and that the DOW was flat for the year = not big profits. I did not mention anything political to him. He wasn't worth my time.

[PoindexterOglethorpe]

1. Well, anyone can pretty much call anyone else, so that part is legal.

But if he somehow got the information your wanting to roll over your CDs and is not part of your Credit Union, then the big question is how the hell did he get your phone number and financial information? Either he's with the CU and is doing something I'm sure they don't permit, or someone there was careless with your personal information.

It's possible you're simply the victim of an incompetent scammer.

[CountAllVotes]

3. He didn't seem to realize it is a IRA

I found him on a site that gives stats on brokers.

He's had 5 jobs in 5 years with different companies, most recent being the credit union.

http://brokercheck.finra.org/

How dumb are they to hire such an individual?

I'm going to call them and tell them what think!

[PoindexterOglethorpe]

7. Yes. If the CU is hiring someone that sketchy,

you might want to find a different place to store your money and IRA.

And that website apparently has no clue that Overland Park, KS, 66210 is a valid location.

[CountAllVotes]

8. You can type in their name and company

No location is necessary as I looked up this other guy from Edward Jones that has been after me as well. He has less than one year of experience so he's out as well.

This really sucks!

Frauds everywhere it seems!

All they want is your money and you never hear from them again, that is pretty clear IMO.

[PoindexterOglethorpe]

9. I wound up calling them,

and my real problem is that I know the name of the firm by the names of the three partners, and their registration, which is on all the paperwork I get from them, is something else entirely. I do have a lot of confidence in my financial advisor, and it was reassuring to see that he has a clean record.

Whenever you're thinking of getting a financial advisor, you need to research and ask lots of questions.

[empedocles]

2. Lot more than your IRA are coming due

[CountAllVotes]

4. Yes there is

Also some CD's that are plain CD's.

They'll mature in Jan. 2019 as well.

I think you nailed it!

[question everything]

5. Calls after you contacted your credit union? Caomplain to them

they should not pass around details of your account.

Perhaps even complain to your state AG

[CountAllVotes]

6. I am thinking of getting away from this credit union

If you have to crack a CD early, the penalty is ONE YEAR of dividends!

[progree]

10. I bet he wants 1% of assets under his management, not 1% of the profits

A yearly fee of 1% of assets is typical.

I think any promise of a return is illegal, unless it's a fixed rate kind of thing. There's nothing like that returning 8-9%.

[A HERETIC I AM]

11. My two cents;

1) The fact that he ventured off onto a political stream of thought is not illegal, but it is certainly in bad taste. Like most of us do on occasion, I assume something you may have said sent him off on that tangent, whether conscious or not. Either way, he should have ignored it.

2) The fact that he has worked for several firms over the last few years is, in and of itself, not something to be too concerned about, as long as he didn't have any disparaging remarks on his U4 (the report you saw when you looked him up on the FINRA website). It's possible one or more of the firms merged, so he may not have actually switched jobs, but it would look that way because each company is listed separately. It's also possible they closed the branch he was working out of. There can be any number of reasons, none of which should raise a red flag as to why he has seemed to move around. If you leave a firm to improve yourself or your opportunities, no one would think you are "sketchy".

3) He got your contact info because your Credit Union gave it to him. You don't say so in your OP, but I would guess your CD's were held in a "House Account" (otherwise the original broker of record named on the account would have been the one to contact you) and when they convert to cash the possibility of generating commissions becomes available. You can't blame them for that, after all, they aren't a charity. When that happened the information went to him because he was probably next in line to get the lead. If you aren't comfortable with any solicitation for a securities purchase, don't do it! Which it seems is what you did. FWIW, CD's pay virtually ZERO commission, unless you are talking 6 or more figures as the principal amount and even then it is minimal.

4) The 8 to 9% is almost certainly a long term projection based on past results for an equity fund or some sort of managed portfolio. You said "He was promising 8-9%" Are you sure? If he did indeed "promise" those kinds of returns going forward, then he was wrong to do so and unless he is a complete idiot, he probably said "in the past" or something similar that you may have missed. Again, since you weren't comfortable and ended the call, no real harm done. If you feel strongly about it then you can report him to his branch manager.

5) Just because the guy at Edward Jones has less than a years experience does not make him a "fraud". Every broker, asset manager and financial advisor out there at one point in the past had their first year on the job.

6) Does this Credit Union offer a full suite of investment choices? Stocks, Bonds, Mutual Funds, Options, ETF's, CEF's, etc? If so, you have many, MANY available investment vehicles you can access. If all they offer are CD's and a few other securities (Mutual funds, for instance) it may behoove you to seek out another firm which can offer more flexibility. If all you are interested in is Certificates of Deposit, then of course, almost any bank can set up an IRA and sell you CD's.

[CountAllVotes]

12. Thank you

Thank you for your perspective on this A HERETIC I AM.

I have made no decisions re: this situation.

As for this guy, I never said anything political to him at all, I swear. He's the one that started it up and ended it. I never told him what my opinions are re: politics.

As for him and his background, whatever. Not impressed. I've heard that 8-9% garbage before and it seems to be something they tell you to get you to go with them.

He worked for several very different places ranging from Edward Jones to Fidelity and the other three were similar jobs with different companies. What if he packs it in an leaves his job again. What happens to me? Do I get lost in the shuffle?

As for CDs, probably my only safe choice. I need to look around and see if I can find something that is paying more that what I am getting now.

Thanks again for your perspective and also the thing about the guy at Edward Jones. He seems like a nice guy and all but I think they charge a lot. Still unsure.

[A HERETIC I AM]

13. I would probably call his branch manager then.

As for this guy, I never said anything political to him at all, I swear. He's the one that started it up and ended it. I never told him what my opinions are re: politics.

If he said he could get you eight or nine percent then I would call the branch he is out of, speak to the manager and tell him/her what he said. He was out of line on the political stuff as well as making baseless claims. He is required by law to say something to the effect "this portfolio has returned (X) over the last ten years (or whatever)" and should say something like "Past performance is no indication of future results" If you still have the number he called from, call them back if you want to. He shouldn't do that kind of crap and I guarantee his compliance department would like to know he is doing that shit.

What if he packs it in an leaves his job again. What happens to me? Do I get lost in the shuffle?

Your account would go to another broker in the branch or become a House Account, but you shouldn't get lost in the shuffle. It does happen however, so (this goes for everyone) it's important to look at your statements and notice any changes. It should mention the broker of record on the account on page one. If that changes month to month or from one statement to the next and they DIDN'T call you, CALL THEM AND ASK WHY!

As for CDs, probably my only safe choice. I need to look around and see if I can find something that is paying more that what I am getting now.

If absolute 100 % safety of principal is what you seek, then yes, CD's or US Treasury Bonds are your best bet. The ten year Treas. is now at almost 3% (closing yield today 2.93% on a 2.88% coupon)

And yes, Edward Jones is a full service broker/dealer but their commission schedule and other fees are not cheap. They most definitely do not fall in the discount broker category. I had an IRA with them and the broker was a guy that worked at the firm I did back in '06 so I trusted him. But I moved my IRA because it was such a small account and the gains were so small that the annual maintenance fee and the commissions ate up almost all the gains. I handle it through E-Trade now. No annual IRA fees, full suite of securities and low commissions. (I'm not promoting E-Trade, just relating my experience and easily attainable information)

Side note;

When I was a broker back from late 2006 through '09, of all my clients I had one - only one - that insisted he wanted NOTHING but CD's. He had been an auto mechanic all his life and had just under a half million saved. "I don't want to hear about no stocks, bonds, no mutual funds - nothing! CD's ONLY!" he said. He was the only client I had that did not have his account value go down during that period. He didn't make squat, but he didn't lose a penny either!

[CountAllVotes]

14. Thanks again

I called up the credit union. They had no idea who this guy is. I asked them for the phone # for the company that they have hired to employ him and they did not know that either!

That said, I went back and checked an email he sent me. I'd asked him to send me the prospectus for this 8-9% investment. What he sent me was a picture of himself along with a toll-free # for the company he works for but no prospectus (because there is none is what I think). I do not plan on contacting him, that is for sure.

The main reason I invest in CDs is due to my health. I have a stress activated illness and was advised to stay clear of anything that might cause me to get ill, so CDs work and also, I have a stack of I-bonds that are left (inherited in 2002). As for the IRA, I was getting 6.25% on it from 2006-2012! I made well over 30% on the IRA during this time period so it worked good for me. I realize the days of 6.25% are gone (for now) but at least rates are going up finally after being stuck in neutral since I found this investment at 2.76%.

As for CDs v. the stock market, your story reminds me of one from this 80-year old lady that used to walk past my house every day. She was a retired mathematician and she told me that CDs were better than the stock market historically. I think she knew a thing or two!

As for the rest of it, could spend a lot of time chasing this fraud but I think I'll spare myself the hassle. It is obvious that this company that employs this guy could care less about their customers, no doubt!

I learned a long time ago that money and politics do not mix well. I have relatives that are repukes and I never take the bait if they try to start it up with me. I tend to listen and leave, a strategy all of us could perhaps use as it is simply not worth dealing with corrupt fools like this! I think the reason he has had five jobs in five years is obvious.

I thank you again for your advice I HERECTIC I AM.