No. of Recommendations: 1
This is an old post, but I'll add my two cents. As someone who used to be a financial advisor, your father was extremely lucky. Because of the way compensation works, if that advisor was new he is under extreme pressure to bring in a certain amount of money or generate a certain amount of fees in a short period of time. If he had experience, then he just placed your father in a product he was comfortable selling. From your description it sounds like the former.

Unfortunately, many advisors know very little about the market. Annuities have some of the best payouts. So do managed futures. I remember being told to sell annuities, managed futures, and managed accounts made up of mutual funds because they were "sticky assets". Meaning it's hard to move the assets. Also, they paid great fees.

If you want to invest in stocks and no-load mutual funds, you're better off opening an online account. Advisors are best used when dealing with large sums of money, usually more than $250,000, and you have no interest in managing money. Say no to annuities and managed accounts/futures. Stick to mutual funds and fixed incomes. Advisors can't purchase products in clients' accounts without their permission. Most likely the advisor talked about the mutual funds that made up the annuity, giving your father the impression that this is where the money was going.
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