Some of my investments are at Fidelity, most are at Vanguard.
Fidelity representatives called me and my wife over and over again, including 4 times last week, wanting to talk about my investments. I recalled that a number of years ago, they told me about mega backdoor Roths, which I had been unaware of, and have since used, so why not talk to them? They scheduled two remote 1 hour conferences.
In the (second) zoom meeting with a vice-president of Fidelity today, they explained that because I am a qualified investor, many additional opportunities are open to me. I do not have to settle for the 5% interest offered on standard bonds. I can get 11% lending to private companies! At no additional risk! And they can offer me a structured leveraged investment that returns 1.4 times the return on the S&P 500, with a guarantee that I cannot lose more than 30%. I said there are ETFs that return 2 or 3 times the S&P, and the put option on the S&P was bound to cost me, and reduce my returns if it was not used. They said no, the put option is absolutely free!
All this seems to violate the "no free lunch" theorem. I am expecting Bogleheads to advise: Do not walk away. Run! But I will be interested to hear.
Aside: the first Fidelity representative said he was a fiduciary. The second did not say, but I assume he is the same. If these investments are what I think they are, does the designation carry any weight in this context?
Fidelity representatives called me and my wife over and over again, including 4 times last week, wanting to talk about my investments. I recalled that a number of years ago, they told me about mega backdoor Roths, which I had been unaware of, and have since used, so why not talk to them? They scheduled two remote 1 hour conferences.
In the (second) zoom meeting with a vice-president of Fidelity today, they explained that because I am a qualified investor, many additional opportunities are open to me. I do not have to settle for the 5% interest offered on standard bonds. I can get 11% lending to private companies! At no additional risk! And they can offer me a structured leveraged investment that returns 1.4 times the return on the S&P 500, with a guarantee that I cannot lose more than 30%. I said there are ETFs that return 2 or 3 times the S&P, and the put option on the S&P was bound to cost me, and reduce my returns if it was not used. They said no, the put option is absolutely free!
All this seems to violate the "no free lunch" theorem. I am expecting Bogleheads to advise: Do not walk away. Run! But I will be interested to hear.
Aside: the first Fidelity representative said he was a fiduciary. The second did not say, but I assume he is the same. If these investments are what I think they are, does the designation carry any weight in this context?
Statistics: Posted by trugs — Thu Mar 07, 2024 9:35 pm — Replies 9 — Views 1105