Dirty Stockbroker Trick

With 2011 behind us and looking now at 2012, some people will start to look at their portfolio to make some changes, maybe decide that they can invest for themselves.

As a stockbroker, the dirty trick that most use to keep clients on board is to compare results but we weren't comparing apples to apples.

Here is the trick and it would work excellently this year given the results of the stock market in 2011, here is what I mean.

In 2011, the S&P 500 lost under 1% but with dividends, it actually gained 2.1% so make sure that you know that when your financial advisor calls you to tell you that he made 1% and the 'market' lost money that you realize that he is not telling you the truth that you paid for nothing, that you could have done better by yourself by buying a simple index fund.

Same thing with the Dow Jones Industrial Average which gained 5.5% but with dividends 8.4%.  You get the point.

An educated investor is hard to fool and take advantage of, that's you!

No comments:

Post a Comment