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Resolved
The Mutual Fund StoreScam artists

Here is the scene. There are a group of financial planners sitting around a table and one says, 'I have an idea. Why don't we stop charging commissions and just charge a small annual management fee.' This way we will make less money and the client will make more'. The reality is the planner makes more although it sounds like a better deal for the client.

This is the easiest lie to sell in the financial services business. 'We do not charge a commission, we only charge a small annual fee'. You hear this guy, Adam Bold on the radio every weekend telling you that you should avoid the 'greedy brokers' that charge a commission. The actual fact is the 'greedy broker' charges a lot less than The Mutual Fund Store.

The Trojan Horse is that the 'greedy broker' charges a one time fee whereas the mutual fund store charges at least 1 1/2% fee every year, even if your account loses money. Let's look at what happens if you invested $100, 000 with the greedy broker. Your sales charge is a one time fee of $3500. Assuming you are in the investment for ten years with the mutual fund store your fees total a whopping 15% of your original investment which is $15000.

If your account makes no money nor loses no money for the ten years your balance at the end of ten years would be less than $85000. If you do the math and assume that your account grows by 10% per year your fees to the mutual fund store total over $24000.

This is why he hammers other brokers and annuity salesman. He talks about greedy brokers and annuity salesman like they are lepers. He spends most of his show speaking ill of others in his industry. The fact is, in the recent economic down turn, his investors have lost a lot of money, while those who invested in annuities have lost no money and paid no fees and their accounts are actually up in value. Sadly, his investors have lost a lot of money and they will lose some more when he deducts his fees from their accounts. To his credit, Adam Bold is a great marketer but don't expect him to tell you the truth.

Responses

  • Ar
    Arrgoya Jun 29, 2009

    Yep. This is true. Calculate it yourself. Figure that the funds the Mutual Fund Store puts you in typically charge 1.25% to 1.5%. Add that to what the Mutual Fund Store charges you (1.5%) and you are paying approximately 3% in fees. Next assume "normal" market return for the last 100 years of 7% and you are paying 42% of your gains back in fees(assuming you get the "normal" which is no gurantee). They try to tell you they can pick mutual funds before they have great returns. Sorry Charlie, NO ONE has yet figured out a way to do that anymore than they have figured out how to pick stocks. What you end up paying for is a generic asset allocation pie chart that you can find online for free.

    1 Votes
  • Mu
    Muchanti Jul 28, 2009

    Here's another thing to consider. Even the mutual fund industry says 80% of active managed funds don't beat their benchmark index. The 20% that randomly do, only are able to do so by taking excess risk. Which means the funds look great one or two years and then do way worse the next couple years. Looking at The Mutual Fund Store strategy, they are simply cherry picking funds that did well last year and selling them to you this year. You are now in funds that have a greater probability to do WORSE then an index fund. Add in the huge fees they charge and you almost lock in bad returns. Hey and asset allocation models are available for FREE all over the internet. Why would anyone pay thousands of dollars for someone to say you need 60% stocks and 40% bonds and then hold this allocation for the rest of your life or at least as long as you are paying me fees!

    0 Votes
  • Br
    broke Dave Aug 08, 2009

    I have nothing good to say about Adam Bold and his system. He spends more time on the radio soliciting than watching over my hard earned dollars. My experience with the Mutual Fund Store was poor and I would not suggest their services.

    0 Votes
  • Xm
    xm-16e1 Aug 11, 2009

    Well I can see that some annuity salesmen are really publishing some garbage. These are comments by people who have no real personal experience with the Mutual Fund Store, and state the standard generic uninformed drivel. Well I am a investor who uses the Mutual Fund Store services. I have a very aggressive portfolio for long term growth. During the downturn, I lost value, just as anyone else. However I lost about 10% less than I would have with a major commission based service. I checked and talked with an advisor from such a service. So far this year I have already almost completely recovered all losses. I have multiple accounts with the store and all are remarkably up, as much as 12% return (increase in total account value) in one month. My advisor has been extremely helpful, and very very attentive. Very active management of my funds, with genuine customization of service.

    2 Votes
  • Th
    the humungus Sep 05, 2009

    That last poster must be a mutual fund store employee. The only defense they have of their rip-off methods is bring up another rip-off method, annuities that are just as bad, due to the high fees, same as mutual fund store. It's the same thing, its called a wrap program. Variable annuities are nothing but a basket of mutual funds just like the mutual fund store wrap program. They will bring you in, tell you need to be in some allocation percentage which they base on a 5 minute questionnaire, and then just load you with mutual funds that you could just as easily buy yourself for FREE. Then they start dinging your account every quarter for fees, even though they do ABSOLUTELY NOTHING during this time. After 6 months, if you are lucky, you get a call from a secretary who says its time to reballance, and they spin your account for a few buys and sells which in effect doesn't alter its risk-return spectrum one iota. It's almost guaranteed to do worse than a generic group of 4-5 low cost funds or etf's that you could pick yourself for FREE. Why do I say almost guaranteed to do worse? BECAUSE it's already a huge gamble that any of the funds they pick will return what they claim, based on historical returns picked from the benefit of hindsight, while you happen to own them, and their layered fees seal the deal and that is where the guarantee of poor relative returns come into play. If you want to use these guys go in and ask them how many funds they have put on their list and how many they have removed. See if you get a straight answer... Why do they remove so many? Because of bad performance that they can't answer to any questions on why they are in peoples portfolios. Bold? He's an advertiser, not some kind of mutual fund picking expert. If you want that, read Morningstar.com for FREE! Better yet, buy the premium service for $100 a year and save $$$Thousands in fees.
    I think logically, this company caters to the stoopid, and people that are severely deficient in any financial matters at all. Anyone that takes a few minutes to really study the impact their fees will have, will find better alternatives. With the interenet, it doesn't take much to learn this business these days.

    -3 Votes
  • Do
    dogdog15 Sep 11, 2009

    you people might want to consider going back to 1st and 2nd grade to brush up on your grammar and spelling. You should all be embarrassed to write the way you do.

    -1 Votes
  • Ju
    justthefaxjack Sep 12, 2009

    I was a customer of theirs. I kept hearing ads for $199 per year on their radio show. So I called and and asked the advisor why was I paying over $2, 000 per year in fees to them. He said it's only $199 if I have a 401k!!! So I said, you can tell someone which funds to use in a 401k for $199 and you are charging me $2, 000?!. I closed my account with them the next day. Don't believe me? Call them and ask them yourself.

    -1 Votes
  • Sh
    sherman_the_man Sep 15, 2009

    They have a list of funds and everyone gets the same funds. If you want to see something funny, ask them for their list. They HAVE to provide it to you free of charge . Watch the sales rep start dancing around that question. They just make their presentation to you based on which of the funds in each category looks the best at the time you happen to come in.

    1 Votes
  • Wi
    wingK78 Sep 27, 2009

    There is a commercial that Charles Schwab is running that says, "when my broker said, I make money when you make money, but he NEGLECTED to tell me that he also makes money when I lose money, or do nothing with my money." Sounds like they are talking to the Mutual Fund Store. Put your money into these funds, leave it there, and keep paying for someone to do nothing but tell me to hold until I die. All the fund they recomnmend are only positive for people who put money in the last few months. Anyone with them longer than 6 months is DEEPLY in the hole, but yet they keep taking their fees. FOR WHAT? What did they do to earn any of it?

    -1 Votes
  • Dw
    dwa269 Oct 04, 2009

    First off, many of the so called independent brokers ARE lepers and ### and I am very suspicious that several of the posts here are from those of the same ilk. I know from personal experience about those blood suckers. Talk about a sociopaths?

    No one performs a service for free. NO ONE! The funds you are invested in are based upon your personal risk tolerance, as they should be. I have some of those same funds I bought through a discount broker and I researched them independently and didn’t buy because TMFS or Adam Bold suggested them. I don’t agree with all of his investment advice on the mutual funds, but so far I have done pretty well with the TMFS. When you consider that financial investment is essentially gambling you just have to be prepared to take the lumps when the economy tanks as it did last year. Grow up and get over it. If you think for one minute and independent broker sold you a fund that lost money and didn’t get a profit, think again. When all is said and done it is just business and everyone, including us, are in it for the money. I don’t expect them to work for free. I also suspect that some of the branches have better and more experienced employees running them than others, but, the same could be said for the best brokerage services. Even the good ones drop the ball now and then. I won’t say they hung the moon, but so far I have done OK. Should that change I am a big boy and perfectly capable of pulling my money out and going elsewhere.

    0 Votes
  • Sk
    skeezix Oct 07, 2009

    That's a fine couple paragraphs there DWA269. Which location do you work for? When you start seeing ACRONYMS in commentary, you know you got an employee in the house.

    0 Votes
  • Co
    Conejos Oct 14, 2009
    This comment was posted by
    a verified customer
    Verified customer

    I had a very large account with the Mutual Fund Store, the operative word being “had”. I did well during the up market out performing the S&P 500 by a few percentage points. But my investments underperformed all measures of the market on the downside even though I was in a moderate risk category. My self-managed 401K with limited choices did 10% better in the down market, and, because it lost less, is recovering faster. Mr. Bold says that if you take the risk of the market, you are entitled to be in the best funds. I found that in the down market, over half of my funds performed in the lower 50% percentile in their respective categories and for a period of time, over a third were in the lowest 25 percentile. Mr. Bold excuses this on his radio show by saying some of the best fund managers fared poorly in the down market. That raises the question as to whether the fund mangers the Mutual Fund Store picks are the best.

    I found that even though we were in a down market of biblical proportions, the Mutual Fund Store made no substantive changes in my account. Active management simply meant they periodically rebalanced my account. In a down market, this means that the better performing funds were sold to buy more of the poor performing funds. I lost faith in the store when they bought more Hodges Fund (HDPMX) even as it continued its slide losing 70% of its value, was rated the worst performing fund in its category, and had performed poorly for almost two years. Mr. Bold continues to promote this fund even though Morningstar rates it two stars. The only change I saw in the down market was the Mutual Fund instituting a fund watch list. My interpretation of the watch list was that it was a way of appearing to take action without actually taking action.

    Finally, Mr. Bold advertises that your Mutual Fund Store advisor will periodically contact you to review your account. To be fair, you do get a quarterly report and my advisor did call back when I called with questions. However, most communications were voice mail simply stating they were rebalancing my account. During one of his radio shows, Mr. Bold stated that he had 25, 000 clients and 300 employees. Assuming that not all of his employees are advisors, simple math would indicate that his advisors average over 100 clients each. In addition to handling clients, the Mutual fund Store is always offering free reviews for prospective clients. Don’t expect a hand holding advisor. As for the quarterly report, I asked that the report include the ranking of the funds and explain why poorly performing funds were being held. I received a negative answer and was told that the rationale for holding funds was proprietary, a strange answer considering Adam Bold gives out the same information freely every Saturday morning.

    0 Votes
  • Sq
    Squire Hutt Oct 15, 2009

    Conejos, your experience is consistent with mine. There is virtually zero investment management done for clients. It's the same thing for everyone. Same funds. The Mutual Fund Store defines investment management as moving you from one fund on the list to another one, regardless of what the market is doing. You mention Hodges Fund, which is a concentrated high risk fund. It made it on the list because it had some blowout quarters a few years back which made it look great on presentations, making the "pitch book" look that much better. Problem was, The Mutual Fund Store didn't own it when it had the blow out numbers. They jumped into it after the fact. That is the M.O. of this company. Load into funds that look great on presentations. It's all just performance chasing. You mentioned the number of employees. Check out how many people are in the office anytime you go in. Usually, no more than 1-3 people. They have to cover rent and pay a huge ad fee to the radio stations to pay for their hour long commercial every Saturday, then on top of that they have to pay a huge royalty of 30% of their revenues to the franchisor. This can all be found by doing a little digging through their franchise agreement. http://www.freeufoc.com/pdf/MutualFundStoreFA1.pdf

    So you have one, maybe two advisors that are having to handles many hundreds of accounts just to break even. Even if they wanted to, you can't do any serious investment management for people when you are responsible for that many accounts. It's just stick em in mutual funds and hope like hell all goes well. If anyone complains, their defense is, "your questionairre says you should be in 60% stocks and 40% bonds, and we reallocate every quarter." That's it. Nothing else. Several of the funds they use are allocation funds themselves, so why would anyone pay a fee for "asset allocation" only to have them put you in an asset allocation fund. It's like paying for gas at the pump and then walking inside and paying the clerk at cash register also.

    -1 Votes
  • Ta
    tasty phlegm Oct 17, 2009

    To the original poster: I DID the math. I only had to do one-quarter's worth of math in your hypothetical of a $100, 000 account that makes no money or loses no money for ten years. The Mutual Fund Store's fee is .375% on a trailing basis, so it would take $375 the first quarter. That leaves $99, 625 in the pot, ergo the fee would be something less than $375 in the second quarter and every succeeding quarter over the 10-year period. Thus, it would not add up to $15, 000 in fees.

    The term "dumb schmuck" comes to find when thinking of someone who would leave their account with The Mutual Fund Store or ANYONE ELSE to stagnate for ten years and they deserve what they get.

    By the way, Fidelity Investments, for example, has the same 1.5% fee structure as The Mutual Fund Store to manage your account. Oh, yes, the management fees of any mtual funds they purchase for your account (including their own Fidelity funds) will be passed on to you---just like The Mutual Fund Store.

    The negative posters here sound just like the ones who subscribe to any of the many football betting tip sheets and then cry when every game isn't a pointspread winner or every weekend isn't a winning weekend.

    -1 Votes
  • Wa
    Ward Cleaver Oct 18, 2009

    It comes down to this simple issue. FEES. That's it, nothing else matters, because history proves that NO ONE can predict or time the market. Not Bold nor the fund managers he alleges are so superior. It's all smoke and mirrors at several levels. It's like the people that in years past sold Health Elixer from the back of a wagon for whatever ails ya. These people like Bold can spin their yarn to reach enough people to always stay ahead of those that eventually figure out they are being taken to the cleaners. The investing community relies on only the past 70-80 years of market history to claim that buy and hold will get you to riches. When in reality buy and hold only gets the purveyors of the elixor to riches at the holders expense for taking much more risk than they are cognizantly aware of. Over a cylce longer than most of our lives, the best one can expect to do is 8% in 100% stocks, the most aggressive position and therefore, theoretically, the most rewarding. But a mutual fund wrap program like The Mutual Fund Store is guranteed to suck 3% of that return in fees, leaving the investor with 5%. Why would anyone take the maximum risk to ultimately get a long term return that is quite close to the return of corporate bonds? The answer is because they are sold a con. They are told they will outperform if they just give the "system" 5-10-15 years to play out. By that time, the investor has paid a huge sum of money in fees and figured out he got nothing of extra value for it. Does the Mutual Fund Store care about this? No, they don't because they will have a new set of schmucks who start the process all over again who they can tell the same lie to over and over and over. The best thing people can do is keep the process simple, by not feeling that they need to "outperform" any index. Use low cost investment strategies and avoid rip-offs like annuities, mutual fund wrap programs, and most importantly purveyors of easy riches, high returns and anyone who promises they have found the secret to "outperformance", because anyone who makes these types of claims is lying simply to enrich themselves at your expense.

    1 Votes
  • Yo
    yogi_berra Oct 24, 2009

    The #1 Immutable Law of the Universe:
    If you offer people a lot of money to do something, no
    matter how foolish, unethical or illegal, a large
    number of them will do it.

    The people engaged in such behavior will
    rationalize it such that they genuinely believe that what
    they’re doing isn’t foolish, unethical or illegal.
    The #2 Immutable Law of the Universe:
    Bad behavior leads to bad consequences.

    0 Votes
  • St
    STAY_ AWAY! Oct 24, 2009

    So Mr. Bold who claims to be such a genius of picking mutual funds based on the manager, was so successful that he had my mom's money in one of the WORST funds EVER! Schwab Yield Plus. One of his "great advisors" told my mom this fund was a safe as they come. She lost nearly 1/3 of her money in that fund before they DID ANYTHING! Then today I read this article and it all becomes clear:
    http://finance.yahoo.com/news/Is-Buy-and-Hold-ms-367272613.html?x=0

    Another is that indexes minimize some of the worst aspects of human error. Think about the most terrible bond-fund blowups of 2008: the Oppenheimer Core Bond Fund (NASDAQ:OPIGX - News) or the Schwab YieldPlus (NASDAQ:SWYSX - News) fund or those Regions funds. In the case of short-term bond funds in particular, a lot of the managers just yielded to the temptation of chasing yield and putting in a lot of mortgage garbage because they could goose the yield. If you bought a short-term bond index fund, you just didn't get that sort of thing. There are short-term bond ETFs, and none of them blew up because the computers--the machines--didn't have much interest in mortgage derivatives. The humans running active funds, on the other hand, were hell-bent on earning a bonus based on how much yield they could produce.

    I guess the overriding point is in my opinion it's extraordinarily difficult to pick individual securities that will outperform a market benchmark, but I happen to think it's even harder to select managers who will outperform a category average. I think that's even harder, and it's harder because you have all kinds of second-order effects. You have asset growth, you know, "This person was great when he was managing 200 million bucks, but now he's got $10 billion. Is he still going to be able to do it?" Well, who knows? If you ask him he will say he will, but asset growth can kill performance. Then maybe he's made so much money he's fat and happy and just wants to spend some time on his yacht. And if you ask him, he's going to tell you, "No, that's not true, I'm still hungry."

    It's extraordinarily difficult to pick a great manager who will still be great. And the most basic reason for it of all is that luck is really the driving force, to the extent that most investors don't appreciate and can't appreciate because it makes people uncomfortable, but it happens to be true.

    I'm not saying that active management is bad or futile, or that I think everyone who invests in an actively managed fund is an idiot. What I am saying is that it's extraordinarily hard to get it right, and maybe the best reason of all to do it is if you can find a manager whose view of the world is really similar to your own. Because then you're a lot more likely to go along for the ride. Like Morningstar, for many years I've been almost obsessed with the concept of dollar-weighted returns as opposed to the time-weighted returns that everyone reports. And all the arguments in the fund business and among financial advisors are really about basis points, is this better than that, is this kind of fund better than that kind, is active management better than passive management? But the real debate should be about percentage points, not basis points. And the percentage-point-gaps are the gaps between the returns of the investment and the returns of investors. One really good way to close that gap is to get people into funds that make them comfortable. A charismatic, eloquent, dynamic, confident active manager is someone you might be able to be loyal to when you can't be loyal to a computer program. Index funds don't have personalities, and they can't write much of a letter to their shareholders. A great active manager can be a magnet for loyalty, and that's really important. And I would never denigrate that, and in fact, most investors would probably be better off putting their money into a mediocre fund they could be loyal to than a whole series of great funds that they go barging in and out of at the worst possible times.

    1 Votes
  • Jo
    Jocko 123 Nov 01, 2009

    Adam Bold was pimping funds throughout the approx. 50% downturn which hit (essentially) all sectors of the market, only to boost his own bottom line. That's all I needed to know to conclude he's in it for himself, not his customers.

    1 Votes
  • Ol
    Old_King_Coal_Sucks Nov 02, 2009

    Everything is about Adam Bold. EVERYTHING going into his OWN pocket! But as long as there are enough lazy and foolish people who are not willing to dig a little he and his minions will keep taking their money for doing very, very little in return. Same reasons that email scams continue to proliferate; there are some real schmuks out there who fall for anything they are told. Bold blabs weekly about picking the best and most consistent funds. Take a look at the junk he's recommended, well, first of all, he doesn't tell you ALL the crap he has to sell at lows and huge losses, all he talks about are the one or two funds that you can ALWAYS find in hindsight and talks as if he found them before they had a run.

    0 Votes
  • Tb
    T-Bone Sweets Nov 10, 2009

    Why not just invest in a couple of Allocation Funds with the bulk of your money, put about 10% into an international fund or index, 10-50% in bond funds, depending on your situation, 5% in a speculative growth fund, and then bank the cash that you would otherwise pay to the fee mongrels into CD's. If you have a 100k portfolio, after 5 years you'd have amassed $7, 500 into your CD's (not counting interest), that you otherwise would have tossed into the pocket of someone else! So if the market is totally flat, you are still UP 7.5%, and the only cost is that the fee mongrel gets one less vacation.

    0 Votes
  • Bi
    Big Green Machine Nov 29, 2009

    I had an account with Mutual Fund Store. The fees they were charging me seemed outrageous. How much work does it take to buy 7-8 mutual funds and then do nothing for nearly 7 months? Not much. I checked with Charles Schwab as my account was already with them and they will do the EXACT SAME thing as Mutual Fund Store for 1/3 of the cost. (.50% vs. 1.5% for Mutual Fund Store). Why pay these guys I ask. I couldn't come up with a reason, so I am done with them. http://www.schwab.com/public/schwab/planning/financial_guidance/ongoing_professional_advice/schwab_managed_portfolios/minimums?cmsid=P-2141316&lvl1=planning&lvl2=financial_guidance

    0 Votes
  • Cl
    Cloned_Zorro Dec 11, 2009

    This guy, Bold, talks out two sides of his mouth. One second he says "no one can trade or time the market", then he says "the mutual fund managers we pick are the best at trading and timing the market". How can this be? Take 10 Large Growth Funds. There is nothing that Bold can do to pick a better one than any other person. A monkey has exactly the same percentage of picking the best fund out of the group of 10 as Bold does. There is no amount of information that will lead to better odds of prediction. Past Performance? Are you kidding? Was it luck, skill, taking excessive risk, not taking as much risk, being smaller, being larger, being younger, being older, being richer, being healthier, not having a nagging wife, who the hell knows what is going to happen in a fund managers life, day, week, his company, his hemorrohoid condition? NO ONE. There is no predictabilty. Bold is selling a mirage of belief and hype. Nothing more. And it is very expensive and damaging to your savings to buy into it.

    0 Votes
  • Gr
    Groniger Dec 12, 2009

    I had an account with Mutual Fund Store. Every time I called them (they rarely call me) I ask them what is going on in the market? I ask them about gold, bonds, market valuation. The ONLY thing my advisor EVER says is, "we got you allocated, just stay invested" no matter what is going on. It's the SAME thing over and over. How is this advice? I can write this down on a piece of paper, and stop paying them for this lame advice. The program on Saturday is no help. Hour long Infomercial. Waste of time to even listen. I feel stupid for having been conned into this place. When I finally complained, they said "well, we are not as bad as other advisors". Nice one. I just looked at the guy and and left.

    0 Votes
  • Ma
    Mark D in KC Dec 27, 2009

    I am 53 yrs old-have seen some things, gained some wisdom and I am a general contractor while also in the army reserves. I am at ground zero in the economy...I bid my work and in my other career I am a govt employee. Last 20 yrs I have been taking reserve pay and investing in mutual funds. I have been with Prudential, Schwaab, Indep broker and now Edward Jones. I listen to Adam Bold and was considering changing or allocating some savings to MFS. After reading the above postings, I see what I have experienced with other brokers as listed is no diffrent than some have experienced with MFS. I have mixed emotions regarding economics based upon my experiences in life:
    1) Our economy almost tanked due to a lack of integrity BY EVERYBODY...
    2) We have a big national debt, been accumulated over 40 yrs, this does/will affect your retirement even if you
    are a govt retired employee...govt needs money now more than ever (expect cuts, don't be too comfortable...)
    ps: Before you can vote, hold office, it should be mandatory to take econ, finance, pol science, and amer. history!
    (Our country is full of ignorance, greed, and hypocracy. We have been too fat with the luxury of living in a theoretical world...)
    3) We loose jobs due to consumers demand for "cheapest" prices...(global economy, new era, pay attention, you may have to change your buying habits to a certain degree to keep jobs here. ps: Unions need to get more competitive/get real. Union members do not even practice what they preach when it comes to their money)
    4)Everytime you turn around somebody has fine print in their agreement with you. I will bet the company you work for does the same. One whines when his ox is being gored, then gores somebody else down line!
    5)Capitalism is not perfect. Our constitution is not perfect. but when USA was fighting for freedom, there were parts of Europe who viewed our success/our fate as the hope of the world, so why do we wish to become like Europe? Socialistic! However, at same time, if private sector has problems and does not clean up/fix problem, the govt. has an opening to step in such as with health care. Capitalism can only truely work only if members of system operate with integrity-the fine print and exaggerated advertisements such as MFS, EJ, Schwaab, Prudential and I bet the company you work for, have been traditionally and legally accepted as "commercial puffery-advertising!" It is a way of life. So, "Cavet emptor-let the buyer beware".

    Summary: The golden rule would go a long way but until USA crashes, screw your neighbor will continue.
    So, Adam Bold and others do not surprise me. As a general contractor, I have met ### customers, ### contractors and wonderful customers and contractors. Do not expect too much. Believe none of what you hear and half what you see. If it sounds too good...it is not true. Integrity, starts with you. If at your job, they want you to do something shady, then have guts to say no and yes perhaps fired. Then tell the world! Integrity, pass it on. If you do not like your service/product, then change ( you have choice...until govt gets involved). However, do not expect people to work for nothing or the "low bid" if you want a good job and jobs here in USA! At same time charge a fair and competitive price. Consumers, companies, and govt need integrity. In a global economy, the USA needs integrity for capitalism to survive. It starts with you even when nobody is looking. The remarks posted here all boil down to the integrity of both the customers of MFS and the associates. Are the expectations
    realistic? Does MFS actually try to live up to its advertising rhetoric? I see the greed on both sides. (Caveat Emptor...pass it on..in capitalism, we are all buyers and sellers at some point..just do it with integrity)
    Mark D in KC

    0 Votes
  • Ro
    Roll on red Dec 30, 2009

    Mark D. You said it all. It all comes down to INTEGRITY. 90% of the people in business don't have it anymore. All that's left it seems is the Arrogance, greed and stupidity. Who makes money out of a gig like this Mutual Fund Store thing? Rarely, if ever, the customer. What has Bold gotten out of this compared with his customers? Radically different. INTEGRITY and VALUES. People know the definitions of these words and they look at themselves in the mirror every day and tell themselves it doesn't matter. In the end it is going to matter. If you do the right thing even when no one is looking, you understand it. Some people are just too arrogant and self indulgent to ever understand it.

    0 Votes
  • Ti
    Timothy 6:10 Jan 08, 2010

    "University of Maryland finance professor Russ Wermers studied 2, 076 funds over 32 years through 2006 and found that actively managed stock funds underperformed passive index funds by a risk-adjusted 0.97 percentage point a year, after accounting for fees. "
    Ok, so knowing this to be the case. What happens when you tack on more fees to pay for someone who tells you they can "pick the mutual funds"?
    I think its a reasonable question to ask.

    0 Votes
  • Ki
    KISS Keep it Simple Stupid Feb 20, 2010

    It is truly about the fees given a length of time. This company puts your money into an account and then buys a bunch of mutual funds that each will charge fees on top of any fee that the mutul fund store charges. When you add the two sets of fees together it makes a rather expensive solution for your portfolio. If you truly don't know what you are doing you should just buy almost any NO LOAD BALANCED MUTAL FUND with LOW expenses. For example, you could buy American Century One Choice: Moderate (AOMIX) with fees of just .87%. Now Adam Bold will try to convince you that is not a good fund because it holds all American Century Funds. However, with his system he would have you believe that he is going to go out and find superior funds, but in reality his system will also have you in duds with a sizable portion of your portfolio just as frequently as he picks a high flyer. If he says otherwise to this it is not true. No one is going to pick nothing but the best because NO ONE has a crystal ball. Any marginal return he thinks he can get by buying in and out of all different manner of funds is going to be eaten up by the higher fees, and (capital gains taxes if in taxable account) over time. I like American Century funds because they are inexpensive and do comparatively decent. They aren't at the top of any short time periods because they aren't gamblers. However, there are bunch of other fund families that are just as good and just as inexpensive, like T.Rowe Price or Vanguard or Fidelity or Janus... Just make sure its no load and balanced and you will have as good an allocation as Mutual Fund Store can do and you will not pay fees through the nose. This is my opinion. Some people might like to pay more money in fees, and if you do then OK go ahead and do so, that is your right to spend your own money however you see to it.

    0 Votes
  • Fo
    Former FA Mar 25, 2010

    Could be worse, some charge for the 5.75% load, then tack on wrap fee.
    Renaissance financial charges 1.75% on first 3 Million. It is all so sorry,
    with a bit of research people could do better managing their own accounts.

    0 Votes
  • Ca
    Captain Queeg Mar 28, 2010

    Research shows 96% of managed Mutual Funds underperform indexing over 15 years. Now the reason is clearly the mutual funds own fees. Add in the fees that you pay to Mutual Fund Store and you compound the underperformance. The math simply does not work out to pay for this service.
    http://finance.yahoo.com/tech-ticker/phil-town:-%22mutual-funds-are-a-scam, %22-but-don't-bet-against-america-450669.html?tickers=^DJI, ^GSPC, SPY, CMG, FXI, PGJ, EEM

    0 Votes
  • Ha
    Harold the Barrel Mar 30, 2010
    This comment was posted by
    a verified customer
    Verified customer

    The S&P 500 over the past ten years has returned exactly 0%. If you have an S&P index fund and paid no fees, you have earned exactly 0%. You got what you paid for.

    I am not a client of the Mutual Fund Store, but I have invested in several of the funds I've heard recommended by Adam Bold on the radio, and five of those six funds have beaten their indexes by between 4% and 8% per year. There are indeed fund managers who consistently beat the indexes... yes it's a minority of all fund managers, but they're out there, and it takes a little research to find them. If I didn't have the time or the knowledge to do my own research I would gladly pay 1.5% to someone who could help me beat the market by 5% per year.

    -1 Votes
  • Br
    Brown Bongo Apr 07, 2010

    Harold - Which funds? And when did Mutual Fund Store start talking about them AND when did you add them? My guess is AFTER they had a few years of "indexing beating performance". What you fail to mention is how much additional risk the particular fund you mention is taking. You also make no mention of what percentage of your portfolio these "index beating funds" represented. When you say that there are fund managers who beat the indexes, it is purely relative to TIME. Example; many fund managers can beat their index over short periods of time assuming you have a rising overall market. The more concentation or risk, the more that fund is likely to beat the index. The problem is that measurements and statements such as you make cloud the issue significantly. They are not quantifiable. Ultimately it comes down to a rather simple understanding that if you invest over a lifetime, you would VERY WELL to get long term average returns, of about 6-8%. When you consider that managed funds charge about 1.5% and the Mutual Fund Store charges 1.5% you reduce your return to 3%-5% AND you have still taken the risk of the overall market. In this case one is better off just going for far less risky investments such as Corporate and Government Bonds, not paying for "so-called investment advisory services" and avoiding the risk of stock. 3% management expenses is simply too great a hurdle for anyone to beat over a cycle of 5-10 years and definitely beyond that.

    0 Votes
  • Sa
    Sam Hain May 16, 2010

    All you need to be an investment genious is a short memory and a rising market.

    0 Votes
  • Ny
    NY Cutcher May 29, 2010

    This "system" by it's structure is nothing but chasing performance. Do a search for funds with best returns over the last 3-5 years and sell them to people because you can say they are consistently good performers, and most importantly, they make the pitch book look good. Anyone can do that, and typically that is the path to horrible future returns. Every mutual fund prospectus tells you straight away "Past Performance is NO indicator of future performance." But for some reason Bold and his minions choose to ignore this and tell people the exact opposite. For this sage wisdom, you get to pay 1.5% of the value of your hard earned savings?

    0 Votes
  • Br
    Brain Bucket Jun 02, 2010

    Charles Schwab does the exact same thing for a fraction of the Mutual Fund Store fee schedule; or you can even create a balanced portfolio of mutual funds based on your risk tolerance for FREE with their online allocator. And they aren't all Schwab funds as Bold would say. So if you are going to use this company, you should check around because Mutual Fund Store is very expensive compared to others. Someone has to pay for all that radio time!!!

    0 Votes
  • Li
    Lionel Joseph Jun 09, 2010

    Defintion of Leech: a person who clings to another for personal gain, esp. without giving anything in return, and usually with the implication or effect of exhausting the other's resources; parasite.
    Well, that's my opinion of how this company operates. They suck fees out of your account indefinitely and for what? They say "allocation". Uh...at the end of the day if you allocate across numerous assets you are going to do about AVERAGE for the what the average of all the assets classes return. So you just see virtually no long term advantage, and you are sucked dry by the fees. Own the averaged balance fund W/O the leeches fees, save your "fees" to CD's and take less risk, and ultimately get better risk adjusted return. That's how I see it.

    0 Votes
  • Wh
    Whodat? Jun 20, 2010

    Despite experiencing the worst stock market drop since the Great Depression in 2008 and a 'lost decade' of subpar performance, surely mutual fund managers have helped their investors to get ahead, right?

    After evaluating 2008's bear market performance, Dalbar reported in its Quantitative Analysis of Investor Behavior that in 2008 stock fund investors lost 41.6% compared to the 37.7% loss for the S&P 500 Index. Why are these findings significant and what do they prove?

    Since the S&P 500 (NYSEArca: SPY - News) is a fully invested index, with no cash or bonds, it theoretically should've underperformed compared to actively managed funds designed to beat it. But it didn't. This contradicts one of the famous sales pitches given for buying actively managed funds that attempt to beat benchmarks like the S&P 500, which is that portfolio managers can protect their shareholders during a bear market by going into cash, whereas an index fund or index ETF cannot.

    Instead of proving that, it proves something quite different.

    The fact that stock fund investors performed worse than a fully invested benchmark like the S&P 500, shows 1) portfolio managers are ineffective market timers, 2) portfolio managers have done a good job of not protecting shareholder's capital and 3) protection during bear markets from portfolio managers is largely a myth.

    If you're a mutual fund investor that believes your fund manager can protect you from the next big crisis or whatever, it's probably time to re-think your blind faith.
    http://finance.yahoo.com/news/4-Common-Mistakes-Made-by-etfguide-2343397033.html?x=0

    0 Votes
  • Di
    disappointed in LaPorte Jul 08, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I was a Mutual Fund Store customer for nearly 3 years between 2007 and 2010. Although promised regular contact by my advisor when I signed on, I never had personal contact again unless I initiated it. In late 2009 when I asked why I never heard from him, especially during the meltdown in 2008, I was told "Or records show that we called you and left a message to return our call in June (2009). They never called, they never left a message. My answering machine is always on. I finally fired them early this year. You'll notice that there is no way to personally contact Adam Bold on the Mutual Fund Store website. He's not interested in what you have to say and less interested if you're not happy with the service you're paying for.

    0 Votes
  • Jp
    J Pierpont Morgan Jul 09, 2010

    LaPorte, That is par for the course. I'm sure you noticed the lack of contact, particularly during the meltdown. Why no contact during the meltdown? There are two reasons; 1) This company operates on very little manpower (1-2 advisors max per location). Your advisor probably had 400-500 clients at any one time. He's got about 10% of those that bug him daily and tie up most of his time, what other time remains he has to sell, sell, sell to NEW clients to replace the ones going out the back door. He has no time to dilly with the other 90% who basically just sit and hope something is actually being done. 2) This is really the core of the issue. ALL this firm does is buy a basket of mutual funds and HOPE just like everyone else. In the meantime, A. Bold carries the SAME message every weekend on his radio commercial. Market will go up, don't worry, be happy, just hold with us and keep paying that quarterly fee. Oh, mix in with message that every other advisory service besides his is a scam and a con. (wow, that's going out on a limb, 99% of advisory services are a scam, including mutual fund store.)

    0 Votes
  • Pr
    prphil Aug 09, 2010

    I have never read so many complaints from 'uniformed" investors about the service the Mutual Fund Store offers. What you are buying with the 1.5% fee is "advice." This advice can come in many forms and includes which funds to buy based on historical performance and manager tenure, what your risk tolerance is, what your investment goals are, how old you are and what your allocation (large cap, mid cap, small cap, bonds) should be to the various categories of mutual funds. The MFS manager will change your allocation based on market conditions from time to time and may or may not inform you. A concerned investor should call at least once a quarter to get information.

    I am a retiried CPA and I serve on the board of my prior employer's deferred compensation committee. I take an active roll in helping to select the mutual funds that are added to the pool of funds employees select as well as delisting poor performing mutual funds from the pool. We currently have 26 mutual funds available for employee selection.

    I also serve on the board of a foundation and am the chairperson of the investment committee. We pay our investment advisor a quarterly fee of 1.5% of the total portfolio each quarter. I can tell you that the advice we have gotten from this person has been well worth the fee. We elected serveral years ago to go this option and thus avoid sales commissions. So now we get advice on what to buy and what to sell based on market conditions and no, this advisor did not see the 2008 crash coming but did advise us on what investments to sell as a result of it to minimize our future losses and advisor us where to place the funds we received from those sales into other investments that would do well in the market conditions after 2008.

    I defy anyone to tell me that you could get simular advice from anyone at Fidelity, Vanguard, TRowePrice or Schwab.

    I have listened to the MFS radio show for at least 2 years and have found the mutual fund recommendations to be right on. Bold knows his stuff.
    Several of the mutual funds I own are the result of his recommendations. I have always done my own research on those recommendations and adivse anyone else to do likewise.

    -1 Votes
  • Co
    Conejos Aug 09, 2010
    This comment was posted by
    a verified customer
    Verified customer

    In answer to prphil's comments, I agree that a good investment advisor is worth the money. The point of my comments made almost a year ago was that the MFS does not deliver the services Adam Bold advertises on his show once you become a client. Each MFS advisor has way too many clients to pay any significant attention to the needs of a single client or to communicate with a client in a meaningful way. Investments are made following a cookbook program and you will learn more about Adam Bold's thinking by listening to his program than by being a client. Once again, I had a large investment with the MFS and couldn't get the time of day from them.

    By the way, is Mr. Bold still singing the praise of the Hodges fund on his show? I see Morningstar has them rated as one star.

    0 Votes

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