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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75811  
Subject: Re: Wade Pfau: 3% is the new 4% SWR? Date: 3/2/2014 3:57 PM
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Sorry, but that is just plain stupid. Why would you bother obfuscating the state of your affairs?

1) Because the rest of my financial situation is none of their business. I've even run into one who wouldn't even answer a question I had about mortgages unless he first knew all the details of my entire financial picture.

2) Their compliance department may be extraordinarily lawsuit averse, and not want to take on a client that may (in the eyes of a future lawsuit) be put into an "inappropriate" investment.

3) Since I wanted them to invest that specific chunk of my money in thet specific way, they had no need to question my overall asset allocation.

4) They always want to have some percentage of my account in bonds, because they always want to have a defendable allocation in non-risky assets. They always want to treat my account as if it was my entire investment portfolio. I always have to tell them, "No, this is only a portion of my portfolio. Don't concern yourself about the rest, I have an adequate asset allocation overall, I'm just giving you the part that I want you to manage in this specific way."

I had one broker once send me a personal letter (not a form letter) from a VP expressing concern that all of my trades for the last 12 months were option trades, and that was pretty risky. I wrote them back and said, yes, that's why I opened the account with you, my intention was to isolate all my options to one account.

I can't fault them for wanting to make sure a new client wasn't unknowingly taking on a bad asset allocation. But, unlike the majority of clients, I have chosen my own asset allocation and am happy with it.
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