About David Anderson Expertise Any question on the intricacies of brokerage accounts and dealing with a brokerage
Experience I spent 25 years writing advertising, marketing and educational material and internal corporate communications for major financial institutions ranging like Chase, Merrill Lynch and Fidelity. During that time, I also wrote for mutual fund families and savings banks across the country. If someone has a question about how a brokerage account works -- from opening one up to the idiosyncracies of their active trader platforms, I can answer it.
Publications All major financial publications and media outlets that running advertising schedules (WSJ, New York Times, Money Magazine, Smart Money, Forbes, Fortune, CNBC, Bloomberg......wherever you could buy an ad or media time.)
Education/Credentials Columbia University School of Business, MBA
Expert: David Anderson Date: 8/22/2006 Subject: brokerage
Question I think I'm looking for a broker who will help me. I pick the stocks and the decisions, but I want to consult with someone as to timing, etc.,and ask for an opinion. I would pay for this extra service.
Answer There are plenty of brokerages that will help you, Dick, its all a matter of just how much help you want. Today, brokerages offer various levels of service, even in the discount area. For instance, you can actually go into Charles Schwab now, sit down and talk over your holdings with an advisor. Others like Etrade are full discount and really don't offer much in the way of advisory services. What you might prefer is going to a full service brokerage, and opting to work with a broker. These guys get a bad rap -- much of it well deserved -- but, if you know how to make them work for you (and not towards their commission reward levels), and pick a good one (not someone with the ink wet on their Series 7 certificate and looking to build a book), you can use the incredible resources of the brokerage to your advantage.
You go to the major brokerage and meet a few brokers. Then open your account, but DO NOT give them discretionary powers....that's the power to trade any stocks on your account without your approval or knowledge. Then, when they call with a recommendation, ignore it. (90% of the time, these are the stocks the brokerage is "pushing" at the moment.) Particularly ignore the reco if the broker follows your rejection with "but our analyst is pounding the table about this one." Large brokerages trade their own accounts, and how better to dump a dud than on their built-in, unsuspecting retail customers.
No, the way to work with the broker is to call with your own thoughts. Ask for the firm's research on the stock to be emailed to you. Ask for access to their research data base that is online. Review this material, and then, discuss the stock with your broker. You won't have to reject too many of the "analyst calls" before the broker gets the drift that you aren't one of the inattentive, but rather one of the customers who is watching. You won't get those calls any more, and your broker will look over the research he/she collected for you and have a real discussion. You will have to pay a higher commission rate than a discount broker, but....it can be well worth it. The key is to look for a good broker with a long track record at one of the majors.
I would suggest now that you look for someone who has been in the business for twenty years or more. Remember, all the "kids" who have manned their desks for less than five years have never seen a down market. So.....go for a golden oldie.
