Replies to post #50827 on Sharing Knowledge in Smallcaps

[BullNBear52]

Banks are chasing money like that. I even get those offers from my credit union.

[bar1080]

I first read about wrap accounts 10-15 years ago, but was never offered one until now. In the old days, the greediest brokers would just foist off garbage on unsophisticated clients, or mercilessly churn accounts, but that's harder to do nowadays with many firms opting for the fiduciary standard. Clients have gotten much smarter with many sticking with ETFs or index funds. How's a broker going to buy an new yacht with such smart clients! IHUB is one of the last bastions of idiot investors.

Spent a lot of time this week reading about wrap accounts and it seems brokers are really pushing them this year. 1.25%-1.50% is about an average fee. They may make sense for total newbies to investments, like someone who just inherited a big estate, sold a business or won a lottery. But the fact is investing can't be delegated. The investor has to do some basic homework or he risks getting raped by a bad broker.

I wondered why the broker waited until now to present the wrap idea. Probably he waited for WFC's dreadful press from their banking division to die down.