No. of Recommendations: 1
Here's another story.

We have a Keogh at a local/regional bank. Trust officer HAD discretion. "They" knew best and strongly recommended against the self-directed option. I'd say they intimidated me with dire stories of what happened to other clients when they decided to self-direct.

Long story short...I finally signed paperwork to self-direct, and eventually started making some changes. I had a few false starts '94/got scared, but started reading heavily again re BRK/WEB. During the market break in '00, I started putting cash to work. Still made/make mistakes, but overall quite pleased with the results since 2000.

Meantime, 1998 or so, that small bank started their OWN proprietary fund run by that SAME trust officer who had intimidated me and warned against the self-directed option... 5% load!, heavy expenses, good results for a couple of years, and then the bottom fell out. The fund posted -80% losses in EACH of 2 consecutive years!!! 2000/2001 and then folded into a Federated fund in 2002. He didn't lose his job at the bank, still runs individual accounts, and sits on internal investment committees at the bank. Everything swept under the rug.

I must admit that I tracked that proprietary fund against my own port during that time and took GREAT pleasure in the constrast. And, I'm no longer intimidated when I walk into that trust department. (You might call me assertive? :-) ).

I've omitted lots of horrendous detail. But, ask yourself...what made this bank think that the world needed one more proprietary mutual fund charging a 5% load, no less? GREED.

Buffett recently "relieved" them of an onerous loan portfolio, too. Hee hee. I love it.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.