Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Phil, back when I was preparing taxes, I had a client for several years, who had very active brokerage accounts through large bank, which shall remain anonymous, which, by the way, charged him excessive sums to hold his money. When I studied his brokerage statements (not retirement accounts), I noticed a LOT of wash sales. Once I prepared his taxes, I sat down with him and his wife and advised them that the brokerage appeared to be churning his account. Granted, the broker did not receive commissions, but it was costing him money, money, money. I did advise him to talk with his broker and lay down the law.

He did. No more did I find wash sales, but was very disturbed at how much he paid per month for this service (ranged from $800 to $1000) per month, and I further advised him to look into either Fidelity or Vanguard, who would not spend his hard-earned money so frivolously.

Since I no longer prepare taxes for others (it takes too long for me to prepare mine), I sent him to my corporate CPA, and he has been very satisfied. He also changed brokerages.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.