Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

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Sissybugs
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Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Sissybugs » Mon Feb 04, 2019 1:26 am

My FA has contacted clients, myself included, with new paperwork getting us out of 'Matson Money', because I was told he is concerned with his fiduciary responsibilities to us, his clients. Does anyone know anything going on with Matson?

I have my IRA invested and a close friend told me to nix the FA and Matson and go straight to Vanguard.
Grateful for any advice or suggestions. Thanks.

gd
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by gd » Mon Feb 04, 2019 7:41 am

I advise you to ask your advisor about his advice.

spectec
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by spectec » Mon Feb 04, 2019 7:46 am

Chances are there are very good reasons your FA is giving you this advice. Problem is the reasons have more to do with what's in your FA's best interests than with what might be in your best interests.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by gvsucavie03 » Mon Feb 04, 2019 7:47 am

Sissybugs wrote:
Mon Feb 04, 2019 1:26 am
My FA has contacted clients, myself included, with new paperwork getting us out of 'Matson Money', because I was told he is concerned with his fiduciary responsibilities to us, his clients. Does anyone know anything going on with Matson?

I have my IRA invested and a close friend told me to nix the FA and Matson and go straight to Vanguard.
Grateful for any advice or suggestions. Thanks.
You have a wise friend telling you to pack up and move to Vanguard (or another similar firm). That's my route. You could find out why your fa wants you out, but I wouldn't bother.

spectec
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by spectec » Tue Feb 05, 2019 10:18 am

Great point. You're getting better financial advice from your wise friend (and here on Bogleheads), than you're getting from your FA. Maybe there's a lesson to be learned here...
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

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greg24
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by greg24 » Tue Feb 05, 2019 10:23 am

Another vote for a move to Vanguard. Or another low-cost provider. Fidelity has some great low cost funds and a better online interface.

Mr.BB
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Mr.BB » Tue Feb 05, 2019 10:29 am

You should ask your FA what exactly is going to change with his "financial responsibilities" if you stay with your Matson portfolio?
Accept nothing less then a specific answer. (then move your money to Vanguard).
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Jack FFR1846 » Tue Feb 05, 2019 10:45 am

Just a guess, but Matson has maybe stopped or reduced the kickbacks and the FA has a boat payment coming soon?
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staythecourse
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by staythecourse » Tue Feb 05, 2019 12:42 pm

spectec wrote:
Mon Feb 04, 2019 7:46 am
Chances are there are very good reasons your FA is giving you this advice. Problem is the reasons have more to do with what's in your FA's best interests than with what might be in your best interests.
That may not be true at all. Should you have a FA or not is a different argument. It could be the FA IS doing the fud. responsibility. If so isn't that a good thing? This is more of a indictment on a unsystematic risk factor of using active managers who may even unknowingly be investing in unethical folks. Again, another reason to use index funds.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

MotoTrojan
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by MotoTrojan » Tue Feb 05, 2019 12:44 pm

Taxable assets are anchors but if it’s all in an IRA id ask your FA to move you to cash equivalents and prepare a transfer to Vanguard (do that through Vanguard).

lawman3966
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by lawman3966 » Tue Feb 05, 2019 12:51 pm

I quickly reviewed Matson Money's fee structure online, and I'd say that the advice to move money away from them is solid.
I'd follow that up by doing what others have said above, namely to move the money to Vanguard.

zubinh
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by zubinh » Tue Feb 05, 2019 1:00 pm

Matson simply invests in DFA Index funds which he charges a management fee for. You can get the same index funds from Vanguard, Fidelity or Schwab for a fraction of the cost.

Educate yourself about the options that are available and you'll find that you are needlessly throwing money out the window.

deskjockey
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by deskjockey » Tue Feb 05, 2019 1:04 pm

From my (very perfunctory) searches, there doesn't appear to be anything bad in the news about them. One thing I did find out is that Matson Money invests in DFA funds and ETFs, for which they charge you a management fee--basically, they use the same types of funds folks on this board use, but you're paying ridiculous amounts of money for the privilege of having MM do it for you. On top of that, your FA charges you his own management fee. My guess is that MM has curtailed its kickbacks to this specific advisor, so he wants to move your money someplace where he will make more money. You, of course, will continue to get fleeced. That will be the one constant.

As others have suggested, your friend is on the right track. Take this opportunity to dump your FA, pull your money out, and move it to Vanguard, Fidelity, or Schwab. Read the wiki to start learning how to manage your investments. Ask questions here--there's plenty of folks willing and able to help you.

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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by pkcrafter » Tue Feb 05, 2019 1:12 pm

Sissybugs,

Welcome to the forum,

Where does the FA want you to move your assets? Could it be that your advisor is moving away from Matson and he wants your money to follow?

Bottom line is don't go with Matson and don't follow your current advisor. Sit tight until you understand the Boglehead strategy, then move to implement the low cost indexing strategy.

Some information on Bogleheads,

Information posting format,

viewtopic.php?f=1&t=6212

Bogleheads Philosophy

https://www.bogleheads.org/wiki/Boglehe ... philosophy

Getting started,

https://www.bogleheads.org/wiki/Getting_started




Paul
Last edited by pkcrafter on Tue Feb 05, 2019 1:49 pm, edited 2 times in total.
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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Misenplace
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Misenplace » Tue Feb 05, 2019 1:14 pm

lawman3966 wrote:
Tue Feb 05, 2019 12:51 pm
I quickly reviewed Matson Money's fee structure online, and I'd say that the advice to move money away from them is solid.
I'd follow that up by doing what others have said above, namely to move the money to Vanguard.
+1
https://www.matsonmoney.com/Documents/F ... 033018.pdf

Essentially, you pay both your 'advisor' a fee, and he has Matson Money manage your account, and you also pay Matson Money a fee. Matson uses funds that also charge a fee, even if they may be (or may not all be) DFA. Fees on top of fees. Also, they appear to be heavily into variable annuities as part of their money management strategy.

How do people get away with this?

Fallible
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Fallible » Tue Feb 05, 2019 1:17 pm

Sissybugs wrote:
Mon Feb 04, 2019 1:26 am
My FA has contacted clients, myself included, with new paperwork getting us out of 'Matson Money', because I was told he is concerned with his fiduciary responsibilities to us, his clients. Does anyone know anything going on with Matson?

I have my IRA invested and a close friend told me to nix the FA and Matson and go straight to Vanguard.
Grateful for any advice or suggestions. Thanks.
Welcome to the forum.

A few suggestions:

_ask the advisor what's going on with Matson. The answer may not be satisfactory, but the question should be asked and I think we would be interested. Also ask the advisor where he wants you to (or has already) put your Matson money (a good question posted upthread by pkcrafter).

_take your friend's advice and also ask your friend what he bases his advice on, whether it's because he/she knows something about Matson or mainly because of advisor expenses.
John Bogle on his early road to low-cost indexing: "When a door closes, if you look long enough and hard enough, if you're strong enough, you'll find a window that opens."

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Dale_G
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Dale_G » Tue Feb 05, 2019 2:03 pm

This from the Matson link re: referrers compensation:
Historically, these fees generally ranged from 0.25% to 1.4% of client assets under
management, however, Matson Money has reduced the maximum allowed fee for all new clients
to 1.2% of client assets under management moving forward.
It says the maximum fee charged by the referrer (FA) must be reduced for new clients, but maybe that is enough to tick off the FA.

Dale
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spectec
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by spectec » Tue Feb 05, 2019 2:17 pm

staythecourse wrote:
Tue Feb 05, 2019 12:42 pm
spectec wrote:
Mon Feb 04, 2019 7:46 am
Chances are there are very good reasons your FA is giving you this advice. Problem is the reasons have more to do with what's in your FA's best interests than with what might be in your best interests.
That may not be true at all. Should you have a FA or not is a different argument. It could be the FA IS doing the fud. responsibility. If so isn't that a good thing? This is more of a indictment on a unsystematic risk factor of using active managers who may even unknowingly be investing in unethical folks. Again, another reason to use index funds.

Good luck.
I agree - it's possible he's just doing his fiduciary duty.
......but ......
I just don't think so.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

staythecourse
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by staythecourse » Tue Feb 05, 2019 4:41 pm

spectec wrote:
Tue Feb 05, 2019 2:17 pm
staythecourse wrote:
Tue Feb 05, 2019 12:42 pm
spectec wrote:
Mon Feb 04, 2019 7:46 am
Chances are there are very good reasons your FA is giving you this advice. Problem is the reasons have more to do with what's in your FA's best interests than with what might be in your best interests.
That may not be true at all. Should you have a FA or not is a different argument. It could be the FA IS doing the fud. responsibility. If so isn't that a good thing? This is more of a indictment on a unsystematic risk factor of using active managers who may even unknowingly be investing in unethical folks. Again, another reason to use index funds.

Good luck.
I agree - it's possible he's just doing his fiduciary duty.
......but ......
I just don't think so.
THe bigger issue is if it is true when did he/ she become aware of the issue. Should he have known about some issue BEFORE he was given a commission to peddle the product? Did he act immediate when he found out? Did he only act now NOT because of fud. responsibility, but trying to keep himself out of trouble because the SEC is already dropping the hammer on the firm in question? The problem is the only way anyone will ever know is IF this guy has a lawsuit against him and it becomes public knowledge. Again ANOTHER issue with having a FA.

As the great Harry Browne once said poetic as it is, "You want as few as people between you and your money as you can".

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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Taylor Larimore
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Taylor Larimore » Tue Feb 05, 2019 5:05 pm

Sissybugs wrote:
Mon Feb 04, 2019 1:26 am
My FA has contacted clients, myself included, with new paperwork getting us out of 'Matson Money', because I was told he is concerned with his fiduciary responsibilities to us, his clients. Does anyone know anything going on with Matson?

I have my IRA invested and a close friend told me to nix the FA and Matson and go straight to Vanguard.
Grateful for any advice or suggestions. Thanks.

Sissybugs:

Welcome to the Bogleheads Forum!

Consider The Three-Fund Portfolio and you probably won't need the cost of an advisor.

Best wishes
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Topic Author
Sissybugs
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Sissybugs » Thu Feb 07, 2019 9:32 pm

Thanks Taylor, I'm reading about it.

Topic Author
Sissybugs
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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by Sissybugs » Mon Feb 11, 2019 9:39 pm

Thank you EVERYONE, I'm sorry, I'm a newbie on this site and I do not know how to thank each of you individually.
Thanks again!!!

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Re: Why my FA is rushing me to get out of Matson, whom he suggested in 2014.

Post by radiowave » Mon Feb 11, 2019 10:30 pm

Another vote for Vanguard and what Taylor posted above.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

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