• Report: #387235

Complaint Review: The Mutual Fund Store

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  • Submitted: Sun, November 02, 2008
  • Updated: Mon, February 27, 2012

  • Reported By:Sacramento California
The Mutual Fund Store
Overland Park, Kansas Nationwide U.S.A.

The Mutual Fund Store The fees sound small but grow to be a monster Nationwide Kansas

*Consumer Comment: The Mutual Fund Store--worth the fees?

*General Comment: Say Good Bye

*Consumer Comment: Check your math Jerry

*Consumer Comment: A shares? No load Fund?

*Consumer Comment: Where is the proof of a rip-off?

*Consumer Comment: Where is the proof of a rip-off?

*Consumer Comment: Where is the proof of a rip-off?

*Consumer Comment: Where is the proof of a rip-off?

*Consumer Comment: Thanx you for warning me about these RIP-OFF Artists!

*Consumer Comment: Thanx you for warning me about these RIP-OFF Artists!

*Consumer Comment: Thanx you for warning me about these RIP-OFF Artists!

*Consumer Comment: Thanx you for warning me about these RIP-OFF Artists!

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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 commssions 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.

Jerry pritchard
Sacramento, California
U.S.A.

This report was posted on Ripoff Report on 11/02/2008 02:10 PM and is a permanent record located here: http://www.ripoffreport.com/r/The-Mutual-Fund-Store/nationwide/The-Mutual-Fund-Store-The-fees-sound-small-but-grow-to-be-a-monster-Nationwide-Kansas-387235. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 12Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

The Mutual Fund Store--worth the fees?

AUTHOR: Steve - (United States of America)

I am not a customer of the mutual fund store, but I have contacted them for information about their services.  I note that their fees are NOT prominently displayed on their web site--often a bad sign.

In my cursory investigation, I was contacted by a "Senior Investment Advisor" with a CFS designation. Looking up the CFS designation, I find that it is a "Certified Fund Specialist"--a designation from the Institute of Business and Finance.  To get this impressive sounding designation, the training consists of a 60 hour self study program.  The course has a final exam administered by the National Association of Securities Dealers and has an open book final exam.

With this in mind, I inquired as to the fees, and I found that the fees are equal to those of a Certified Financial Planner--between 1% for very large accounts and 1.5% for smaller accounts.

Now, which would you prefer to pay for financial guidance--at the same rate--a Certified Financial Planner, or a Certified Fund Specialist, who has under his training belt a 60 hours self study course?

Well, I decided to pass on this opportunity to work with the Mutual Fund Store.

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#2 General Comment

Say Good Bye

AUTHOR: James - (United States of America)

The difference seems to be that after a year or two if the Mutual Fund Store doesnt produce sufficient income to pay for their fee plus a decent return on my investment, I can leave and go elsewhere.   An Annuity requires that I stay invested for 7 to 10 years even though I may be losing my principal balance.  Thats a big difference.
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#3 Consumer Comment

Check your math Jerry

AUTHOR: AlanMcK - (USA)

Jerry, you need to brush up on your math, especially if you're going to report someone to Ripoff Report.

"Let's look at what happens if you invested $100,000...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."

Um...no.  If your account makes no money nor loses no money for ten years, your balance at the end is $100,000.  It's true that you would have generated $15,000 (1.5% x 100,000 x 10) in fees for TMFS.

Now, if you mean there's no change in your account balance each year for 10 years, and  TMFS takes out their 1.5%, you've forgotten that as the balance goes down, so does the commission -- the 2nd year, they'd be taking 1.5% of $98,500, etc.  Figured that way (i.e., correctly), your ending balance would be over $85,900, and TMFS's commissions would be the remainder, $14,100.

But if your account does that for 10 years, what is every other investment vehicle doing?  The real question is:  Is my annual return, minus the 1.5% TMFS charges, more than I could have gotten on my own or with another advisor?  That's an open question, but simply charging 1.5%/yr. certainly doesn't qualify as a ripoff IMO.

BTW, everything I've read about annuities (cf. fool.com, marketwatch.com, etc.) leads me to believe they are a ripoff for the consumer and a big commission generator for the broker.
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#4 Consumer Comment

A shares? No load Fund?

AUTHOR: Exemployee18 - (U.S.A.)

It depends on the fund on how management fees are structured.  A shares have a front end load which means the fund charges a percentage right off the top once the shares are purchased.  B shares have a back end sales load which means that you are not charged a percentage up front but the management fees are higher annually.  And no load funds charge an even higher management fee or 12b-1 fees on the fund.  Most brokerage firms will purchase A shares if the amount you are spending is less than 50K.  If it is more than 50K it is normally a no load fund or B shares.  I am not sure how this company charges but normally the fund says there is a maximum amount they can charge depending on what shares you buy.  A shares normally are around 5%.
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#5 Consumer Comment

Where is the proof of a rip-off?

AUTHOR: Jeff Green - (U.S.A.)

The fees charged by Adam Bold are only a rip-off if the returns are worse than you could have done on your own, or at least cannot out-earn the overall market.

So where is the actual proof of a rip-off here?

Also, commissioned brokers only will sell you something that will earn them a commission. If there is a better fund for you, they won't sell it to you if they cannot make money off the sale. They do not provide any advice.
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#6 Consumer Comment

Where is the proof of a rip-off?

AUTHOR: Jeff Green - (U.S.A.)

The fees charged by Adam Bold are only a rip-off if the returns are worse than you could have done on your own, or at least cannot out-earn the overall market.

So where is the actual proof of a rip-off here?

Also, commissioned brokers only will sell you something that will earn them a commission. If there is a better fund for you, they won't sell it to you if they cannot make money off the sale. They do not provide any advice.
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#7 Consumer Comment

Where is the proof of a rip-off?

AUTHOR: Jeff Green - (U.S.A.)

The fees charged by Adam Bold are only a rip-off if the returns are worse than you could have done on your own, or at least cannot out-earn the overall market.

So where is the actual proof of a rip-off here?

Also, commissioned brokers only will sell you something that will earn them a commission. If there is a better fund for you, they won't sell it to you if they cannot make money off the sale. They do not provide any advice.
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#8 Consumer Comment

Where is the proof of a rip-off?

AUTHOR: Jeff Green - (U.S.A.)

The fees charged by Adam Bold are only a rip-off if the returns are worse than you could have done on your own, or at least cannot out-earn the overall market.

So where is the actual proof of a rip-off here?

Also, commissioned brokers only will sell you something that will earn them a commission. If there is a better fund for you, they won't sell it to you if they cannot make money off the sale. They do not provide any advice.
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#9 Consumer Comment

Thanx you for warning me about these RIP-OFF Artists!

AUTHOR: Joe - (U.S.A.)

They apparently rip you off with excessive brokerage fees.

There is a certain radio station in Austin,Texas where an brokerage outfit with the same name wants to talk to you IF you have $50,000 worth of investments....

I am wondering if this is some sort of franchise.

I don't mind paying them REASONABLE management fees, but IF, as you imply here, the management fees soon begin to eat up the interest on my dividends and then start munching on my principal, I DO NOT NEED TO PUT MY MONEY THERE!

I don't have $50,000 but was going to call them anyway and think about turning over some funds I managed to save to see if they could grow them for me in the wonderful way they CLAIM to increase your portfolio's worth in their radio commercials....

Come to think about it, since the Yuppie -Greed GENERATED NIGHTMARE ON WALL STREET, I haven't heard those wonderful, down-to-business commercials so I will keep my money to myself.

I DO NOT WANT THE WALL STREETER TRASH TO GAMBLE MY MONEY AWAY!

Thank you for posting your warning.

I ALMOST believed those overpriced ( expletive deleteds).

Whatever happened to the old-fashioned brokerage firm where you,asa SMALL investor, could invest your money and they took pride in MAKING MONEY for YOU and thus, THEMSELVES.

Again, THANKS for the warning!
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#10 Consumer Comment

Thanx you for warning me about these RIP-OFF Artists!

AUTHOR: Joe - (U.S.A.)

They apparently rip you off with excessive brokerage fees.

There is a certain radio station in Austin,Texas where an brokerage outfit with the same name wants to talk to you IF you have $50,000 worth of investments....

I am wondering if this is some sort of franchise.

I don't mind paying them REASONABLE management fees, but IF, as you imply here, the management fees soon begin to eat up the interest on my dividends and then start munching on my principal, I DO NOT NEED TO PUT MY MONEY THERE!

I don't have $50,000 but was going to call them anyway and think about turning over some funds I managed to save to see if they could grow them for me in the wonderful way they CLAIM to increase your portfolio's worth in their radio commercials....

Come to think about it, since the Yuppie -Greed GENERATED NIGHTMARE ON WALL STREET, I haven't heard those wonderful, down-to-business commercials so I will keep my money to myself.

I DO NOT WANT THE WALL STREETER TRASH TO GAMBLE MY MONEY AWAY!

Thank you for posting your warning.

I ALMOST believed those overpriced ( expletive deleteds).

Whatever happened to the old-fashioned brokerage firm where you,asa SMALL investor, could invest your money and they took pride in MAKING MONEY for YOU and thus, THEMSELVES.

Again, THANKS for the warning!
Respond to this report!
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#11 Consumer Comment

Thanx you for warning me about these RIP-OFF Artists!

AUTHOR: Joe - (U.S.A.)

They apparently rip you off with excessive brokerage fees.

There is a certain radio station in Austin,Texas where an brokerage outfit with the same name wants to talk to you IF you have $50,000 worth of investments....

I am wondering if this is some sort of franchise.

I don't mind paying them REASONABLE management fees, but IF, as you imply here, the management fees soon begin to eat up the interest on my dividends and then start munching on my principal, I DO NOT NEED TO PUT MY MONEY THERE!

I don't have $50,000 but was going to call them anyway and think about turning over some funds I managed to save to see if they could grow them for me in the wonderful way they CLAIM to increase your portfolio's worth in their radio commercials....

Come to think about it, since the Yuppie -Greed GENERATED NIGHTMARE ON WALL STREET, I haven't heard those wonderful, down-to-business commercials so I will keep my money to myself.

I DO NOT WANT THE WALL STREETER TRASH TO GAMBLE MY MONEY AWAY!

Thank you for posting your warning.

I ALMOST believed those overpriced ( expletive deleteds).

Whatever happened to the old-fashioned brokerage firm where you,asa SMALL investor, could invest your money and they took pride in MAKING MONEY for YOU and thus, THEMSELVES.

Again, THANKS for the warning!
Respond to this report!
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#12 Consumer Comment

Thanx you for warning me about these RIP-OFF Artists!

AUTHOR: Joe - (U.S.A.)

They apparently rip you off with excessive brokerage fees.

There is a certain radio station in Austin,Texas where an brokerage outfit with the same name wants to talk to you IF you have $50,000 worth of investments....

I am wondering if this is some sort of franchise.

I don't mind paying them REASONABLE management fees, but IF, as you imply here, the management fees soon begin to eat up the interest on my dividends and then start munching on my principal, I DO NOT NEED TO PUT MY MONEY THERE!

I don't have $50,000 but was going to call them anyway and think about turning over some funds I managed to save to see if they could grow them for me in the wonderful way they CLAIM to increase your portfolio's worth in their radio commercials....

Come to think about it, since the Yuppie -Greed GENERATED NIGHTMARE ON WALL STREET, I haven't heard those wonderful, down-to-business commercials so I will keep my money to myself.

I DO NOT WANT THE WALL STREETER TRASH TO GAMBLE MY MONEY AWAY!

Thank you for posting your warning.

I ALMOST believed those overpriced ( expletive deleteds).

Whatever happened to the old-fashioned brokerage firm where you,asa SMALL investor, could invest your money and they took pride in MAKING MONEY for YOU and thus, THEMSELVES.

Again, THANKS for the warning!
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