Interesting article by financial advisor

Cooper81 · November 2011

DH sent me this earlier and I thought it was very insightful, coming from a financial advisor that made the same mistakes many have

http://finance.yahoo.com/news/financial-pro-lost-house-191003606.html

KathrynMD · November 2011

this just makes me realize what a sham the title "financial advisor" is.

idonthavethis · November 2011

KathrynMD:

this just makes me realize what a sham the title "financial advisor" is.

Seriously. Do they really care about the people they advise or are they just worried about filling their pockets?

I just keep remembering when DH and I were looking for houses and being told we could afford a certain amount. The guy knew we really couldn't afford it but just wanted to make as much as he could off of us. Luckily we knew what we could afford and it certainly wasn't that figure!

gracie2762 · November 2011

DH has a friend who is a mortgage broker and had to short sale his house a few years ago. They bought their pricy house for zero down as well. Needless to say we're not using him for our mortgage.

KathrynMD · November 2011

I bought my first house when I was single (in 2001); I think I was approved for almost 40K more than I actually spent. I was in WAY over my head, but the mortgage broker and realtor and friends were all like "oh, you can totally afford this" etc. I totally believed them too. I grudgingly agreed w/ my dad to a cheaper house but I thought he was just being a cheapo and didn't really "know" how things worked.

daisyterp · November 2011

It's a sales position.

Anytime you buy ANYTHING, a house, stock, a barbie doll still in the box, a diamond, gold bullion, etc. w/ the expectation that you will be able to turn around and sell it for more money is essentially legalized gambling.

KathrynMD · November 2011

daisyterp:

It's a sales position.

Anytime you buy ANYTHING, a house, stock, a barbie doll still in the box, a diamond, gold bullion, etc. w/ the expectation that you will be able to turn around and sell it for more money is essentially legalized gambling.

I don't think most people understand that.

xmaryrickx · November 2011

gracie2762:
DH has a friend who is a mortgage broker and had to short sale his house a few years ago. They bought their pricy house for zero down as well. Needless to say we're not using him for our mortgage.

I know a mortgage broker who did the same thing. They also had at least three possibly four cars repo'd, and have had to move rentals like three times in as many years. It's really sad. Especially when he starts telling you his latest get rich quick scheme or tries to give financial advice. To say I am not his biggest fan is an understatement.

lenebene · November 2011

Wow, a salesman still trying to sell his book. No thanks

Cooper81 · November 2011

Yes, mortgage brokers require a laughable amount of training and the industry is seriously lacking regulation. But this guy isn't a broker, he's an advisor, they advice on very specific areas of finance and investments, so yes he should have known better, but I think it's the perfect example of the mob mentality, everyone was over spending why can't I. It does bother me that he seems to say "but they told me I could afford it" and that's no excuse. And that the broker was telling him to take out 100% and then take out a line of credit on the house to live on, even during the boom that would have sounded like an idiotic idea. I thought it was interesting to hear how anyone got sucked into stupid borrowing, even though he definately should have known better.

nezwee · November 2011

Its nice to see someone else who had a loan similar to mine. I bought a condo in 2006 with a negative amortization loan (you choose your payment). It was the only way I could afford to buy.

Thankfully, 2 weeks after I settled I met DH. Otherwise I'd be so far in debt right now.

My mortgage guy was my friend and he made sure that he told me how it worked. But, should he have given me the loan? Nope.

daisyterp · November 2011

Cooper81:
Yes, mortgage brokers require a laughable amount of training and the industry is seriously lacking regulation. But this guy isn't a broker, he's an advisor, they advice on very specific areas of finance and investments, so yes he should have known better, but I think it's the perfect example of the mob mentality, everyone was over spending why can't I. It does bother me that he seems to say "but they told me I could afford it" and that's no excuse. And that the broker was telling him to take out 100% and then take out a line of credit on the house to live on, even during the boom that would have sounded like an idiotic idea. I thought it was interesting to hear how anyone got sucked into stupid borrowing, even though he definately should have known better.

Right- but even financial planner/advisor positions are sales-based. People in those positions are not really taught to think- they are taught to sell.

The "certified financial planner" designation he got is not a big deal. I won't go so far as to call it a joke as that may be offensive to some, but you shouldn't be all that impressed be someone having CFP on their business card.

The CFA exam (Certified Financial Advisor) is actually 3 parts, much more difficult, all about analyses, etc. and not what someone who is selling life insurance and mutual funds out of a shopping center office would have.

Interesting article by financial advisor

Re: Interesting article by financial advisor

Choose Another Board

Search Boards