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  #1  
Old 10-31-2006, 12:18 AM
vykyng vykyng is offline
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What is your opinion of Waddell & Reed?

Hello:

Has anyone here ever done business with a company called Waddell & Reed (e.g. received service from one of their financial advisors)? If so, what was your experience (e.g. good? bad?)?

Please advise.

Thanks!

V.


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  #2  
Old 11-27-2006, 10:56 PM
Unproncble Unproncble is offline
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Re: What is your opinion of Waddell & Reed?

Alas, my opinion of Waddell & Reed is not favorable at all. First their advisor tried to hood-wink me. Then, when I attempt to negotiate a reasonable settlement of my claim with them --- it became evident there was an absence of good faith and fair dealing. Yes, they wanted to settle with me, but the terms were so one-sided it was insulting. So its back to square one and am having the complaint drafted for court filing.

What has been your experience?



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  #3  
Old 11-29-2006, 09:30 PM
vykyng vykyng is offline
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Re: What is your opinion of Waddell & Reed?

I'm sorry to hear that your experience with W&R was not favorable. (Two of their senior employees contacted me with regards to a job as a Financial Advisor so I'm just wondering if it's a reputable company.) How did their Financial Advisor try to hoodwink you?

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  #4  
Old 12-03-2006, 11:56 PM
Unproncble Unproncble is offline
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Re: What is your opinion of Waddell & Reed?

She defrauded me. She made certain representations about her fees that were patently false, thereby setting up a conflict of interest at my expense. Basically, she agreed to purchase "x" amount of assets for me and, for a yearly fee, we would get together 4x/year to review those assets and make whatever adjustments up or down that might be necessary. Well, that was all well and good. Problem, however, was that she failed to tell me everything she purchased on my behalf would trigger a huge penalty/commission if sold under one year. So she basically set me up. There were other aspects to all this also; too complex to detail.

They are negotiating a settlement with me right now...the first round of talks was ridiculous (total lack of good faith and fair dealing), so I spoke with an atty about filing suit. Then, to my surprise (after they told me to go F myself, basically), they brought in a new negotiator who came back with another settlement offer which now I probably will accept.

As far as the firm is concerned, I think they are limited in their ability to make purchases outside of their defined little "Waddell & Reed world". I have a new advisor now who was unimpressed with what was purchased on my behalf and stated there were many better alternatives. However, his research indicates Waddell & Reed could not have made those better purchases for me (which was something else I didn't really know or understand at the time I signed up with Waddell & Reed), because they are limited in their ability of what they can hold, purchase, etc.

Sigh....

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  #5  
Old 12-04-2006, 07:07 PM
ajm184 ajm184 is offline
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What is your opinion of Waddell & Reed?

Waddell & Reed ('WR') is a mixed bag in my opinion from being a financial advisor. A the end of the day, a financial advisor who is employed by a company like this works for the company, not the client.

Like most places in the financial services (and just about all others for that matter) areana, selling the products of your employer is highly encouraged. When considering a position, a person needs to examine the products offered and their relative competitive position within the overall marketplace. Given you asking the question in the first place would indicate its position. In addition, a further examination of its mutual funds (though they also have JV's to sell insurance products) would show in Morningstar to middle of the road for the most part (a couple highly specialized funds are well rated).

The positive is that the fund manager's for many years have had to 'eat their own stew' by investing a lot of money into their own fund(s).

I think a position with them can be beneficial if you would like to get access to initial training or have a deep network pool (willing to invest).

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  #6  
Old 11-05-2008, 07:02 PM
FormerAdviserTrainee FormerAdviserTrainee is offline
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Re: What is your opinion of Waddell & Reed?

I don't think Waddell and Reed is a good place to invest with. I recently started as a trainee, but very soon became disillusioned with their approach.
First of all, their fund managers in Kansas City, MO are incompetent. Check their Web site and look at their returns. Forget what Barron's said about their funds last year. That's old news and not representative of what's happening now. They are completely out of touch with the market, and make some very bad bets.
As of today, their main fund, which has been running since 1940, is nearly 45% DOWN on the year. Worse, read the commentaries on their Web site and see the poorly written and lame excuses they make for their poor performance, and compare it with the what the top fund managers in the industry have to say. They are not accepting accountability for their performance! In performance oriented firms, these fund managers would soon be fired. But in this "family oriented" midwestern firm, employees come first, and investors last. Actually, the financial advisers come last, because they are expendable, low-cost people who come and go frequently.
The current CEO is blaming Wall Street for their woes. Look at the picture of his face - he even looks like a dirty scammer. This is a company that prides themselves on being far away from the "liberal elite" Wall Street crowd, but don't be fooled. They're basically of the same mode - greedy and self-serving - albeit "bible-thumping" as they like to say. And not as smart as the Wall Street people. Also check their stock price. I think it's still being artificially propped up by their own funds, but I expect it will continue to crash until they find some greater fool to buy them out.
My advice - Don't hire these people to manage your money. They are highly trained to target middle income people, sell lousy products, and keep you from redeeming your funds. W&R don't train their contract advisers in real financial planning. They only look for how much disposable income you have and try to get you to invest all of it with them. Ask them some "gotcha" questions and see how they respond. Any financial education that an advisor wants, he needs to pay for himself. In fact, the new advisors even have to pay up front themselves to get their securities and insurance licenses on their own, via Internet. W&R only train and push their contract advisers to get new clients and keep those clients from leaving. In the end, they will grab you and fight like hell not to let you go, even if your needs, and all logic and market conditions, say that you should change investments. If you insist on moving your money, they are trained to use tactics to make you feel afraid and stupid if you leave them. The branch managers and regional managers may even come out to try to make you feel even more stupid and guilty for leaving - if your account is big enough. Kind of like trying to leave a strict Episcopalian church.
In the end, it is in their best interests - and not yours - that you not pull out money from their funds. They will say they have your interests at heart, but don't be fooled - they will be hurting more than you if you move away from them. Worst of all, all they have to sell you are their high load mutual funds, which is a poor shelf of product choices.
Except if - and maybe even worse - they're pushing insurance or variable annuities from Nationwide, with which they lost many lawsuits with, but continue to sell, due to their high commission rate. I think the variable annuity bubble is going to be the next big bubble that's going to crash.
My advice - work with a bigger investment adviser, that has many more choices for you to select from - and buy ETFs (exchange traded funds).
They will be cheaper and give you much more flexibility.

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  #7  
Old 11-21-2008, 06:38 PM
Industry Guru Industry Guru is offline
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Re: What is your opinion of Waddell & Reed?

"Waddell & Reed ('WR') is a mixed bag in my opinion from being a financial advisor. A the end of the day, a financial advisor who is employed by a company like this works for the company, not the client."

-Good one... So you'd rather have an employee of Wachovia, or Morgan Stanley do a "Financial Plan" for you with all of their investments? Waddell advisors are 1099'd contractors, not employees (w2)... They don't sign non-compete clauses and have access to over 100 different fund families. Sounds like they work for the company not the clients... Get your facts straight before you make inaccurate assumptions

Like most places in the financial services (and just about all others for that matter) areana, selling the products of your employer is highly encouraged. When considering a position, a person needs to examine the products offered and their relative competitive position within the overall marketplace. Given you asking the question in the first place would indicate its position. In addition, a further examination of its mutual funds (though they also have JV's to sell insurance products) would show in Morningstar to middle of the road for the most part (a couple highly specialized funds are well rated).

The positive is that the fund manager's for many years have had to 'eat their own stew' by investing a lot of money into their own fund(s).

I think a position with them can be beneficial if you would like to get access to initial training or have a deep network pool (willing to invest).


-Again, you reflect the "Employer" in here... There is no employer when there are independant contractors involved. Also, Waddell & Reed is currently THE NUMBER ONE RANKED MUTUAL FUND FAMILY IN THE COUNTRY... AND Smith Barney is the #1 seller of the IVY fund family which is the public version of the private Waddell Funds. Get your facts straight my friend.

"She defrauded me. She made certain representations about her fees that were patently false, thereby setting up a conflict of interest at my expense. Basically, she agreed to purchase "x" amount of assets for me and, for a yearly fee, we would get together 4x/year to review those assets and make whatever adjustments up or down that might be necessary. Well, that was all well and good. Problem, however, was that she failed to tell me everything she purchased on my behalf would trigger a huge penalty/commission if sold under one year. So she basically set me up. There were other aspects to all this also; too complex to detail.

They are negotiating a settlement with me right now...the first round of talks was ridiculous (total lack of good faith and fair dealing), so I spoke with an atty about filing suit. Then, to my surprise (after they told me to go F myself, basically), they brought in a new negotiator who came back with another settlement offer which now I probably will accept.

As far as the firm is concerned, I think they are limited in their ability to make purchases outside of their defined little "Waddell & Reed world". I have a new advisor now who was unimpressed with what was purchased on my behalf and stated there were many better alternatives. However, his research indicates Waddell & Reed could not have made those better purchases for me (which was something else I didn't really know or understand at the time I signed up with Waddell & Reed), because they are limited in their ability of what they can hold, purchase, etc.

Sigh...."


-You sound like someone just pissed in your cup of soup... First and most importantly... Waddell & Reed has been around for SEVENTY ONE YEARS. They have 3,000 advisors throughout the country and over 250 offices. They are the number one ranked mutual fund family IN THE WORLD. They are the oldest financial planning instituion. IN SEVENTY ONE YEARS, THEY HAVE BEEN SUED OR HAVE HAD 26 COMPLAINTS!!! To put that in prospective for you... Merrill Lynch has had over 900 complaints THIS YEAR. You want integrity and a solid company, Waddell & Reed is it.

As for "FORMERADVISORTRAINEE"... I didn't take the time to read your entire whining post but it sounds like someone couldn't pass his securities exam and maybe had to go back and consider community college or 3rd shift at Wendy's? FYI The CEO has been with the company FORTY YEARS and speaks publicly ALWAYS reminding the field team that it is NOT their money to lose but their clients. The fund managers are the only ones in the industry who have their own retirement in their funds which is incredible and speaks loudly about the integrity of the business model. The average client stays with Waddell 13 years to the industries 2.6 years. The average advisor that contracts with the company and survives longer than 3 years will most times NEVER leave the firm FOR THEIR ENTIRE CAREER. Sounds like a bad deal to me. Why not take the time you wasted filling a post with smiley faces and go study for your series 7 young man. And take ownership of your own failures will you?

God bless you... And the stock market!

-23

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  #8  
Old 02-20-2009, 09:55 AM
NotImpressed NotImpressed is offline
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Re: What is your opinion of Waddell & Reed?

At my girlfriend's insistence, we went to a W&R financial "advisor" last week. I was not happy at all with the quality of service we got.

She was unable to answer relatively simple questions like, "How much will we have after x years if we set aside y dollars/month?" She blamed it on an upgrade of their software, which supposedly changed how to use many of the features.

She recommended that my girlfriend move money out of an old state pension fund, without even checking what rate the fund offered.
My girlfriend:"I think that fund is paying 8% annually."
Advisor:"I find that highly unlikely, but if it's true then you should keep your money there."
So my girlfriend checked with the state and sure enough it was at 8%. Of course, the funds the advisor recommended all came with high front-end loads. The advisor should have done the job we paid for, and checked before automatically recommending the switch. Of course, it wouldn't surprise me to know that she did check, and just said she didn't because she wanted the commission.

She also suggested that I move my IRA from where it is, to their family of funds. Again, every single fund she recommended had a high front-end load, as well as higher than average management fees. When I pointed out the high load, she replied with, "Yes, but try getting these kinds of returns with a no-load fund". This, despite the years of research which shows ZERO difference in performance between load and no-load funds. Basically, she lied to us, hoping that we were ignorant of the truth. F**k that, f**k her, and f**k W&R.

It digusts me that we paid money to have this glorified con artist try to sell us overpriced, second-rate products. Despite what "Industry Guru" (an obvious shill for W&R) says, W&R sucks and I would not recommend them to anybody, for any reason. Are they better or worse than any other corporate financial advisor? I couldn't tell you. But I can tell you that, based on my experience as a client/sucker, they SUCK. They say that they are advisors, when in reality they are salespeople. We specifically chose a fee-based service so that we would get unbiased advice, but that did not happen.

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  #9  
Old 02-20-2009, 12:40 PM
NotImpressed NotImpressed is offline
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Re: What is your opinion of Waddell & Reed?

Oh, and if you look at the prospectuses for W&R's mutual funds, they all have 12b-1 fees. If you don't know what they are, they're fees that you pay so that they can go out and advertise their crappy products to other people.

W&R are scum. Industry Guru? F**k you, too.

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  #10  
Old 02-27-2009, 12:32 PM
Rachel234 Rachel234 is offline
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Re: What is your opinion of Waddell & Reed?

Wow. These are very interesting thoughts on advisors. I do not work for Waddell and Reed...but I am a financial advisor.
1. 12b-1 fees are attached to EVERY mutual fund. Waddell and reed did not create them. In fact the SEC has regulations on the amount of the 12b-1 fees.
2. Depending on what types of shares you purchase, you will have up front costs, back end costs or constant low fees attached quarterly to your principal....this is the same at every brokerage. If you feel you were misled, you should read the contracts before you sign your money away. Usually if you choose a specific share type, you should understand that they are intendended for the long term and taking the funds out may incur fees--this is not made up at Waddell and reed I assure you.
3. W and R advisors ARE independant, but they do have their own products. Advisors don't have incentive to sell their own products but just have more information on them and sometimes prefer them due to ease of use. I know this from being an advisor with Merrill Lynch.
4. Do you just call up a surgeon and have him operate on you without interviewing him about your SPECIFIC health issue? Well before you go huffing and puffing about your advisor....you should interview him and ask questions like how long have you been in the industry, how many clients do you have, etc...
Waddell and Reed has been around for a LONG time...they are clearly in the business to make a little and give a little. Different advisors and brokers have different clients that they cater to...ie merrill caters to the high networth, AIG to lower networth, edward jones invests with the people in the neighborhood.

Its really quite silly to see people complaining about these things like 12b-1 and share class fees--if you have done your research you would be familiar with these things---my advice to you...don't hand over your hard earned $$$ to anyone without the proper understanding of how these things operate.

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  #11  
Old 03-02-2009, 10:49 AM
NotImpressed NotImpressed is offline
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Re: What is your opinion of Waddell & Reed?

Quote:
1. 12b-1 fees are attached to EVERY mutual fund. Waddell and reed did not create them. In fact the SEC has regulations on the amount of the 12b-1 fees.
I never stated that W&R created them; where did you get that from? I did make a typo, though; I meant to say "high 12b-1 fees". Yes, most (not all, as you claim) mutual funds charge 12b-1 fees. But why should anybody pay 1) a high front-end load, AND 2) high 12b-1 fees? The mutual funds being pushed by this particular "advisor" had both; in fact, the 12b-1 fees were about 4-5x what they are in a true 100% no-load mutual fund. And repeated research has shown that higher expenses do NOT correlate to higher returns. In fact, it's the opposite. So how is that in the best interest of the client? Answer: it's not. Get it?

Here's a fun fact:
W&R has a sales brochure which shows how highly rated they were in 2007 (I wonder how long they're going to use those outdated figures) in several classes. What's funny is that if you look at the other 'winners' in those classes, 3 out of 4 times the corresponding no-load Janus fund beats the W&R fund. And it's right there in their very own sales literature. Yes, Janus management had issues of it's own a few years ago in regards to allowing certain clients to market-time and lying about it, to the detriment of their smaller clients, but that says more about the financial services industry as a whole than anything else. That, and the weekly news stories about fund managers embezzling their clients money. And the current market meltdown, helped along by the credit default swaps. And the... well, I'm sure you get the idea.

Quote:
2. Depending on what types of shares you purchase, you will have up front costs, back end costs or constant low fees attached quarterly to your principal....this is the same at every brokerage. If you feel you were misled, you should read the contracts before you sign your money away. Usually if you choose a specific share type, you should understand that they are intendended for the long term and taking the funds out may incur fees--this is not made up at Waddell and reed I assure you.
I didn't "sign any money away", unless you count paying a single flat fee for what was supposed to be impartial and helpful information. Money that we're in the process of getting refunded, btw.

You're making assumptions and stating them as fact. Do you do the same when advising your clients, too...?

Quote:
3. W and R advisors ARE independant, but they do have their own products. Advisors don't have incentive to sell their own products but just have more information on them and sometimes prefer them due to ease of use. I know this from being an advisor with Merrill Lynch.
You're claiming that even though she was trying to push mutual funds with high front-end loads, that she "doesn't have an incentive" to sell them over others? Bullshit. What, does the money get donated to charity, then? It's starting to sound like Merrill Lynch isn't any better than W&R. Which honestly doesn't suprise me at all.

The bottom line is that this woman was paid to give finanacial advice IN OUR BEST INTEREST, not advice that was "easy". I don't give a shit if she or you find it easier to recommend in-house products even though there are better products available on the market. How pathetic is that. You're basically saying that you're too lazy to do your jobs well. With the added benefit of a big fat sales commission to boot. Thanks for the heads-up.

If you don't want to be viewed like slimy used-car salesmen, stop acting like them. Get it?

Quote:
4. Do you just call up a surgeon and have him operate on you without interviewing him about your SPECIFIC health issue? Well before you go huffing and puffing about your advisor....you should interview him and ask questions like how long have you been in the industry, how many clients do you have, etc...
Wasn't my idea; my girlfriend insisted. The "advisor" came recommended by somebody she trusted. Suffice it to say, when my girlfriend told this other person about our experience, he decided to reevaluate continuing using her. Which I think is great, because I'm guessing he's a fairly big client (owns a business and has/had her administering the company 401k program).

Quote:
Its really quite silly to see people complaining about these things like 12b-1 and share class fees--if you have done your research you would be familiar with these things---my advice to you...don't hand over your hard earned $$$ to anyone without the proper understanding of how these things operate.
You can call it silly all you want. What's happening here is the free exchange of information. What's really silly (and pathetic) is watching people, like you and "Industry Guru", get all whiny and defensive when your colleagues get called on their shit in a public forum. Their (your) business practices may be commonplace, but that doesn't make it any less contemptible. Quite the contrary, actually.

Do research? Some of us have, and that's why we're so disgusted with people like you and many of your colleagues, who try to make a living by exploiting other peoples ignorance and fear. I hope the money you take from your clients is enough to compensate for not being able to look at yourself in the mirror and honestly say that you're giving your clients the best advice possible. Because you already admitted that you and your colleagues do what's easy instead.

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  #12  
Old 03-06-2009, 10:21 AM
happyclient happyclient is offline
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Re: What is your opinion of Waddell & Reed?

I am very surprised with the responses on this blog. I just moved all my money/assets to Waddell and Reed. My advisor was fresh out of college with a degree in finance. I was a little skeptical at first because of her age and most advisors are men. After meeting with her (which by the way was free), I decided she was very knowledgeable with the current conditions of the market and with products. I gave her all the information she requested and scheduled a second appointment, (which was also free). She met with me a second time. This time I did my research prior to our meeting and had everything I was interested in outlined for her. She looked over my suggestions and then asked if she could present her recommendations before responding to mine. She did her spill and I was taken aback. She had done a considerable amount of research and came up with a solution to my specific needs. She offered me very solid advise. I was embarrassed at my attempt to tell her how to do her job. I did at that time pay her a small fee for a financial plan. I have found her plan to be worth every penny. It helped me see where my money was going and how I could use this expendable cash to my benefit. This young lady came from the Palm Harbour office. I guess as with any business/service, it depends on the people, not the company. There are "bad" people in every industry/job. As a consumer, it is our responsiblity to interview people we want to entrust our most private details to. If you do not feel comfortable or trust with this person--do not use them. Ask for another advisor. As for me, I have been very satisfied with the service I have received. Yes the market is down and my investments are down, just like everyone else. But having been down this road before, I know that when the market is back up, I will make up for my losses and then some. I think all of the whiners who are so interested in moving their money/funds are the ones that are causing the majority of the problems in the market. They want in when times are good and want out when it is bad. If they would average the overall experience, they would see they are even or better. Any investment only pays off in the long haul. For people who want to move money/funds all the time, maybe they should look at the overall picture. I guess what I am trying to say is don't judge a book by its cover. I am sure that Waddell and Reed have questionable people just like every other business/industry out there.

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  #13  
Old 03-06-2009, 01:08 PM
NotImpressed NotImpressed is offline
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Re: What is your opinion of Waddell & Reed?

I thought I'd follow up on one of Rachel's comments, about the "silliness" of complaining about 12b-1 fees, which "every" mutual fund has, according to her.

Quote:
Some funds also charge 12b-1 fees - named after the SEC rule authorizing them - to pay for distribution costs, such as advertising and commissions paid to brokers. Investment companies assess such fees against their funds' assets. Although typically amounting to only a few basis points a year, 12b-1 fees have been contentious since their inception. Investment companies have argued that these fees help reduce fund expenses over the long run because they can be used to pay for promotions that help fund assets grow more rapidly than they otherwise would. Ferris and Change (1987) and Trzcinka and Zweig (1990), however, found that funds charging 12b-1 fees tend to have higher over-all expenses than other funds. They concluded that funds charging 12b-1 fees are imposing an undue burden on their shareholders.

"Undue burden" is a fancy way of saying that 12b-1 fees drag down a mutual funds performance for no valid reason; the fund managers are taking your money and spending it trying to convince yet more people to join the fund, so they can do the same thing to them too. But yeah, it sure is silly of us to not want that.

You see, Rachel; it's because we research these things that we get disgusted when "professionals" like yourself try to convince us that it's normal, and nothing to be upset about.

EDIT:
For anybody who wants to read about this subject in more detail:
"A COMPREHENSIVE LONG-TERM PERFORMANCE ANALYSIS OF LOAD VS. NO-LOAD MUTUAL FUNDS"
- http://www.studyfinance.com/jfsd/pdf...13n2/kuhle.pdf



Last edited by NotImpressed : 03-06-2009 at 01:18 PM.
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  #14  
Old 03-19-2009, 10:48 AM
danoodle danoodle is offline
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Re: What is your opinion of Waddell & Reed?

lol notimpressed, seems you have a bit of pent up anger there. Just because you had one bad experience with an advisor, you go on this rampage making claims that encompass the entire financial industry. Yeah there are bad people out there. Yes you need to do your own due dilligence. But claiming an entire company is garbage based on your ONE experience is simply foolish. It's comparable to prejudice and stereotypes. All Irish are alcoholics. All Asians know martial arts. Waddell and Reed is a horrible company because I had one bad experience with a financial advisor. Boo f-ing hoo. Go online and open up an account with Ameritrade. Nuff said

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  #15  
Old 03-19-2009, 03:05 PM
NotImpressed NotImpressed is offline
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Re: What is your opinion of Waddell & Reed?

Quote:
Originally Posted by danoodle View Post
lol notimpressed, seems you have a bit of pent up anger there. Just because you had one bad experience with an advisor, you go on this rampage making claims that encompass the entire financial industry.
Nice attempt at a Strawman Argument, but that's not what I said. My ire was directed at W&R specifically, not the industry in general. Although, since you bring it up, much of the industry is pretty bad. A few years ago I worked with a very ethical person who became a financial advisor. To make a long story short, as he began to see the kinds of business practices that occurred every day, he became quickly disgusted and left the industry.
Quote:
Yeah there are bad people out there. Yes you need to do your own due dilligence. But claiming an entire company is garbage based on your ONE experience is simply foolish. It's comparable to prejudice and stereotypes. All Irish are alcoholics. All Asians know martial arts. Waddell and Reed is a horrible company because I had one bad experience with a financial advisor.
Again, you are unable to refute what I and others actually said, so you try to completely misrepresent the situation. If you had bothered to read (or comprehend) the entire thread, you would have seen that many people are dissatisfied with the integrity of the W&R advisors that they met with. And one of the posters, who used to be in their trainee program, stated quite clearly that their advisors are indoctrinated in unsavory business practices from the very beginning, which would make the issue pretty much company-wide. I find it curious that you ignore all of that and instead focus on my "pent up anger". It makes me question your objectivity and/or your mental faculties.

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  #16  
Old 03-23-2009, 06:19 PM
danoodle danoodle is offline
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Re: What is your opinion of Waddell & Reed?

lol I'm not refuting that you had a bad experience with this particular advisor. Or anyone for that matter. You are still claiming W&R is horrible based on your one experience. Show me some case studies. How many people have been scammed by W&R? What is the level of satisfaction with current investors and ones that left? You'll get a different story from every person you hear. I'm still not convinced. It comes down to the individual advisor. You can find some great advisors at the worst firms and horrible ones at the top ranked ones.

Give me some hard evidence that W&R, as a company, is complete garbage, that every advisor is a scam artist, that every person who has paid them money for their services is unsatisfied.

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  #17  
Old 03-30-2009, 09:06 AM
NotImpressed NotImpressed is offline
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Re: What is your opinion of Waddell & Reed?

Quote:
Originally Posted by danoodle View Post
lol I'm not refuting that you had a bad experience with this particular advisor. Or anyone for that matter. You are still claiming W&R is horrible based on your one experience. Show me some case studies. How many people have been scammed by W&R? What is the level of satisfaction with current investors and ones that left? You'll get a different story from every person you hear. I'm still not convinced. It comes down to the individual advisor. You can find some great advisors at the worst firms and horrible ones at the top ranked ones.

Give me some hard evidence that W&R, as a company, is complete garbage, that every advisor is a scam artist, that every person who has paid them money for their services is unsatisfied.
lqtm I see at least two flaws in your reasoning. First, a client has to know that he's been cheated before it counts. Second, that every single advisor has to be scum and every single client has to have been ripped off before the firm itself is bad; that's a curiously high standard.

But ok, I'll play your silly game for a sec. Let's see what a quick Google search turns up:

Waddell & Reed Settles NASD Charge:
Quote:
04/29/05
Waddell & Reed will pay $18 million in fines and restitution to settle allegations the investment firm employed "aggressive" tactics associated with the sale of variable annuities.
Securities regulators contend the Kansas-based investment firm engaged in a national sales campaign to persuade customers to switch variable annuity contracts issued by one life insurer to those issued by another insurer. The campaign generated extra fees for Waddell & Reed, but led to some 5,000 customers paying unnecessary expenses.

Regulators at the NASD contend Waddell pressured customers to switch annuity contracts "without regard to whether the transactions were in the customer's best interests."
Waddell & Reed Settles Market Timing Case:
Quote:
July 25, 2006
The state of New York has reached an agreement with one of the nation's oldest mutual fund management companies to settle charges that the firm permitted illegal trading of its funds.
Under the settlement, Waddell & Reed, Inc., based in Kansas City, agreed to pay $50 million in restitution to investors and make fee reductions totaling $25 million over the next five years. The company also will adopt a series of management reforms.
And:
Quote:
Investigation also determined that Waddell & Reed's senior management knew that timing activity was harming the firm's small investors, and yet the company did nothing to stop the harmful activity for a period of 18 months. During that time, the Company's prospectus created the false impression that Waddell & Reed vigorously policed timing activity.
These were both on the first page of search results, and both were just a few years ago. But let me guess: now you're going to contend that they were just flukes, they learned the error of their ways, the bad apples are gone, etc ad nauseum.

Face it, the corruption is pretty much company-wide, and goes all the way to the top. A previous poster already explained that unsavory sales tactics are taught from the beginning, but for whatever reason you choose to ignore that. Are there individuals working for the company that are honest and ethical? More than likely. Why they would want to work for a company like W&R, I don't know. Maybe they're trying to get enough experience so that they can eventually move on to a more reputable business.

If you want to continue apologizing for W&R, knock yourself out. I've proven my point. Better yet, if you honestly believe that they're so great, let them manage all of your money. I hear they've got a great deal on variable annuities...

Dumbass.


Last edited by NotImpressed : 03-30-2009 at 11:08 AM.
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  #18  
Old 04-06-2009, 06:10 AM
danoodle danoodle is offline
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Join Date: Mar 2009
Posts: 6
Re: What is your opinion of Waddell & Reed?

Quote:
Originally Posted by NotImpressed View Post
Second, that every single advisor has to be scum and every single client has to have been ripped off before the firm itself is bad; that's a curiously high standard.
It's called hyperbole. I thought a smart, sophisticated man like yourself who says "lqtm" would know that. Seriously, lqtm...wow....

Please tell me the name of one or more companies that are ethical. That will make you endless returns on your money. I dare you to name a "reputable" company on here because any moron can do a google search on any company and find dirt on them.

The bottom line is that people need to do their own due diligence. That's why there is a site called scam.com (imagine that?). Why you would ever let anyone "manage all your money" or do anything based on a "girlfriend's insistence" is asinine in its own right.

I don't believe they charged at the initial consultation. Why would you have not seen for yourself the character of this advisor first hand? Why would you not do your research and investigate the litigation against the company. I damn well know when I go to a new doctor the first thing I ask is if they have ever been sued for malpractice.

Keep dreaming if you think you will ever find a broker dealer that has never had a case against them. Once again, I would like those names of "reputable" companies. Good luck in your search.


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