All brokers are schooled in the art of influencing people, no matter how “honest” they are. In fact, Dale Carnegie’s book How to Win Friends and Influence People is required reading for almost every newly minted broker.

That’s because a broker’s salary and livelihood are dependent on their ability to generate commissions. Successful brokers must convince their customers to buy or sell stocks, bonds and other securities in order to make a buck.

[ad#Google Adsense 336×280-IA]They are taught the art of psychological warfare in order to persuade clients one way or another.

So you can imagine whose interest they are really serving.

It’s almost never the client’s.

There’s one very dangerous expression in their arsenal.

If you hear this word come out of your broker’s mouth, you should run for the hills.

Your account is about to become a target.

The Greatest Forces in the World

Albert Einstein said that fear and greed are two of the three greatest forces in the world.

When it comes to investing, the word “opportunity” invokes both the fear of missing out and the chance to make a quick buck. That’s why so many brokers use it when pitching investment strategies to their clients.

More likely than not, your broker is pitching their own opportunity. Not yours.

It’s an opportunity for them to make a commission.

If you happen to make money on the trade, great. If not, who cares? I’ve seen it happen repeatedly. And last week, I found myself in my own broker’s crosshairs.

Learning When to Pass

Readers may be surprised to learn that I keep one of my investment accounts with a broker. I met him through my grandfather. Since he had always done right by my grandfather, I gave him and his firm a chance. I opened an account. I filled it with dividend stocks, set up the reinvestment plan and walked away.

Every month or so, I log in to my account online, review my portfolio and make any necessary changes. Last year, I didn’t make a single trade. It has been a good deal for me, since it is a transaction-based account.

That means my broker is paid only when I buy or sell something.

Early on, my broker would call me, trying to convince me to diversify into more aggressive “age appropriate” growth stocks. Since I’m well acquainted with the power of compounding, I declined. He accepted my investment strategy, and since then we’ve spoken once a year.

There was no reason for me to transfer the account and incur any unnecessary transfer fees.

Until now…

The Wrong End of the Gun Barrel

My broker is retiring. My account was handed off to another broker. I’ll call him “Jay.”Jay called a few weeks ago with an “opportunity” for me. Yes, he used that exact word.

He said I was wasting my prime investing years with my “buy and hold” strategy. Apparently, in his 10 months as a licensed broker, Jay had figured out a way to increase my investment returns.

I didn’t listen to much of what he said. He lost me the second he said the word “opportunity.” All I know is that his strategy involved a lot of buying and selling.

It quickly became clear to me that there was only one opportunity he had in mind for me: to pay him a bunch of money in commissions.

I had become the target.

I politely explained to Jay that I wasn’t interested in his opportunity. Moreover, I explained that I am perfectly happy with the way my account was managed before.

But Jay, a new broker being schooled in the art of persuasion, would not take “no” for an answer. The calls have continued and the opportunity bombs have continued to drop.

I’ve had enough.

Saying Good Riddance to Opportunity

Because of Jay’s behavior, I’m transferring my assets to my online brokerage account. I don’t need Jay to babysit my holdings. And I certainly don’t have time to hear about Jay’s opportunities to earn commissions. The transfer fees are well worth the peace and quiet.

Remember, any opportunity presented by a transaction-based broker is, first, an opportunity for them to book a commission. And there is no reason for you to let their fees eat into your returns.

If you feel pressured to make lots of trades in your portfolio, stop, take a step back and think about finding another broker. Better yet, consider handling your investments on your own.

No one cares more about your money than you do.

Good investing,

Kristin

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Source: Wealthy Retirement