JP Morgan investigation--Read if you have a financial advisor

[green_goblin12]

JPMorgan knowingly sold investors inferior funds, report says
JPMorgan knowingly sold investors inferior funds, report says - Market Day

In search of lost profit after the financial crisis, JPMorgan Chase pushed investors to buy its own mutual funds even when competitors had better-performing or cheaper options, according to a report in the New York Times.

The article cites JPMorgan’s current and former financial advisers who said that, as the bank became one of the nation's largest mutual fund managers, they were encouraged, at times, to favor the company’s products.

ALL major firms do this. They push their own funds because they pay more, plain and simple. More to the company, more to the fund manager, more to the financial salesman. This shouldn't surprise anyone; they don't have your best interest in mind. Only their bottom line and the salesman's pocketbook.

I hope more people take note of what they are investing in. You are losing out if you are paying high loads and high fees/expenses. KNOW what you are investing in. It is, afterall, YOUR money!

[MonkeyMama]

This is news?!?

[scubatim84]

Sadly, to a lot of people, it IS news. I am wary of any financial advisor that gets paid commissions off of expenses because they have a very big incentive to push you towards funds with ruinous costs.

Here's the simple truth in investing...if you invest in low-cost index funds which cover the whole market, whether it's stocks or bonds, you're invested in the entire market without bias to any sector. Ergo, you don't need a financial advisor to try to convince you which sector or stock or fund is going to be a "market beater". The best financial advisor is yourself because you have no incentive to screw yourself with higher expenses. Read some investment books, educate yourself and just get index funds. It's a lot cheaper, easier and provides far superior returns over the long run.

[GrimJack]

This has finally pushed me over the edge - I have JPM in my IRAs and have decided to unload it. I will probably replace it with KO, I know it is not even close to the same sector but it leads me to a funny story. I had KO in my regular trading account about 15 years ago - one year I had single shares issued that I gave as Xmas gifts to family. I gave one share to DW and other shares to nieces and nephews. I hit some hard times and finally had to sell all my KO but DW, during that same time, DRiPped her KO up to the point now that she stopped adding to her position because she has over a hundred shares (and I have none).

[97guns]

This is news?!?

its news after the fact just like all financial "news" , by the time sheep Q public finds out its much too late