Regulation of unlicensed tax preparers.

[jainen]

I am from California

Yes, I am from California, and pretty much everyone I know here is pretentious. (As to your second word, I can't say. I have never used even mild profanities under any circumstance for any reason.)

Personal means related to an individual. It is the polar opposite of a prejudice, which lumps everyone into one category. Generally prejudices are considered to reflect the speaker's state of mind and say absolutely nothing about the category or the people in it. But if the shoe fits, put it on.

[OldJack]

crooks

Well... I have several lawyer friends and do business with them and others every day. But as a profession I have to say they represent the bottom of the barrel in society and are generally look upon by the public as crooks.

Did you hear that last winter it was so cold in Oregon that the lawyers had their hands in their own pockets?

[Snaggletooth]

Financial Industry

Looks like Jainen has hacked off another board member.

As gloomy as his assessment may be, we've got to ask whether he is right before denegrating him to the slimy status he perhaps deserves. Why would he make such a statement about the financial industry? Among the traits that make Jainen unpopular, being wrong is not often one of them.

If you work in the financial services industry as we all do, you should know already of the shell games, half-truths, and image emphasis pushed by the major institutions of banking, insurance, and brokerage. This doesn't mean you are consummate evil if you work in these areas, but look around you at the games they play.

There's nothing WRONG with making money. Money earned by working hard has a good feeling about it. But let's be up front about it. Examples abound.

If you write a check, the retailer may cash it and have his money before you can drive home. Even at 10:00 at night your account is debited electronically on a "real-time" basis. However, what if you make a bank deposit? If after 2:00 the bank will not give you credit until the "next business" day because it takes time to "post" the transaction. How does this compare with millions $ of TV commercials which tell you, "YOU are the focus of our operation?"

How about your 401(k) custodian? carries a "variable annuity" (which is not really an annuity but a shink-wrapped version of a major mutual fund). The mutual fund is required by law to display 1-yr, 5-yr, 10-yr returns, etc, and report them NET of fees and loadings. Thus Fidelity Magellan may advertise 11.5%. However the Prudential (for example) account which may be called Pru Magellan advertises the same 11.5% and skims some 3% off the top. Over the normal course of time, the insurance company makes more off the fund than YOU do!

Deposit $1000 into an IRA at your friendly bank. The bank is legally entitled to mail you a statement showing you have this $1000 in your IRA account. But separate booking allows them to enter $925 as a liability due to you, and another $75 as deferred income. This means if you cash out, you are reduced by the cumulative "deferred income" and they call it a "penalty." What they don't tell you is that the 7.5% was never really yours to begin with.

And of course, let us not forget the helpful hand of the tax preparer who takes out a RAL on you to "service you better." This is really bad, but at least the customer knows what is going on...

I had thought of going into the securities business at one time, and actually thought I could help people enter superior financial products and make a living at it. Sea-tax if this is what you are doing, hats off to you for rescuing these clients from a worse fate with conventional institutions. However, I was bombarded with pressure from the authors of various financial products with dogma which sneaks their hand into the customers' pocket, and very evasive about their methodology. Seemed like the providers of these products were not happy with simply making money, they overwhelmingly wanted me to sell rip-offs.
I gave up shortly after indoctrination.

This is a long post, and time to give the reader a break. Jainen doesn't really need the likes of me to come to his defense, but for some reason I thought he was from Minnesota and not California...

[veritas]

In my earlier post I agreed with Janien in a rather snide way. I have a securities license and have no trouble sleeping at night. When recomending a retirement vehicle I can make sure it is done properly. IF their income is to high for a Roth IRA we don't put them in one. If a Simple retirement plan is the best fit for a company I don't set them up with a SEP. When it comes to sales charges we will do everything that is possible to reduce it. If they are invested in a Mutual Fund and have paid the sales charges I don't willy nilly sell and put them in a new fund so they pay again. If they are doing alright on their own I tell them to keep on doing what they are doing because they don't need me. I don't sell any annuities. Often we aquire investment clients because their rep is not doing anything. We just have the client sign a rep transfer form which cost them nothing. Then we keep in touch to make sure their needs are taken care of. What's the problem?

[Snaggletooth]

Right Way

Veritas, sounds like you are performing a truly needed service.

But listen to yourself. The fact that you are comparing your services to the more diabolical financial products is testimony of rampant deception in the practices of financial institutions.

I'm happy to hear you are offering decent alternatives. Go for it!!

[jainen]

the client's best interest

>>comparing your services to the more diabolical financial products<<

This is exactly my point. It is not that financial advisors are bad people. On the contrary, the field seems to attract more than its share of practitioners with strong religious ethics.

But the business is INHERENTLY problematic. I don't know why that is. It may be that the conflict between earning money and paying money is too stark when there is no other product to provide emotional comfort. It may be the long and greedy history of moneylenders is too enmeshed with our culture. It may be that many investors can not really understand the choices they make because the math is so abstract.

Even the most angelic brokers shephard their clients into the capital markets which fund war, poverty, and environmental destruction on a global scale. That is not in the client's best interest, in my opinion.

[Unregistered]

There are bad people in all business endevors. Look at RAL's and the many tax prep people who push audit protections and all the other garbage out there. But to lump all people from one category together is just wrong.

You say they fund wars with investments I guess I am just to simple minded a person to respond. I don't get it. Maybe you were burned by a broker or just not loved enough by your mom, but Jainen often times I find your attitude and demeanor to be rude ,abrasive, and condescending. I feel you are a highly intelligent person but rather misguided in your ways. Good luck to you and I will end with we can agree to disagree.
SEA-TAX

[veritas]

Janien is pretty nice to us. You ought to see some of the other boards.