Does going with an independent investor hold any hidden risks?
October 18, 2010 9:06 AM Subscribe
Our Investor is going independent. Anything I should be aware of before following him?
posted by anonymous to Work & Money (2 answers total)
My mother has had the same stock broker in charge of much of her money for the last 20 years. She's been happy with him. Other than the recent crash he's done well for her. He's very easy to communicate with, which is very important to her.
He has been, until now, the vice president of a major investment firm (a local branch). But my mother received a call yesterday that he is retiring from the company, but will be in business for himself as an independent stock broker. He said that 80 percent of his clients were moving with him, and hoped she would as well.
She wants to move with him also, and upon hearing that I had no problem with it. Seems logical. However, not knowing much about the stock market, now I'm a little bit weary of not knowing if this changes anything.
I have no idea if a firm has anything in place that would protect her that an independent would not. Or if there are more risks going with an independent.
Any advice one way or the other would be greatly appreciated. If anyone has questions or advice they'd rather not share openly you can email me at crossroadblues at gmail.com.