Manages Parisian Family Office. Began Wall Street, 82. Founded investment firm, Native American Advisors. Member, White Earth Chippewa Tribe. Was NYSE/FINRA arb. Conservative. Raised on Native reservations. Pureblood, clot-shot free. In a world elevated on a tech-driven dopamine binge, he trades from Ghost Ranch on the Yellowstone River in MT, his TN farm, Pamelot or CASA TULE', his winter camp in Los Cabos, Mexico. Always been, and will always be, an optimist.

Thursday, May 24, 2007

IPO's and Penalties.........

When a new client comes to Chippewa Partners we like to examine the preceding 12 months of statements from the clients predecessor custodian of his assets. Invariably clients often seek out our services because they are sick and tired of the abuse they take at the hands of brokerage firms. You see, brokers must serve a couple of masters. One, they have to produce their livelihood at the expense of the client even if market conditions warrant nothing should be done to their portfolio in the way of change, asset allocation or as the brokers call it, to increase the velocity of RTB, return to broker. Second, the broker has to generate commissions and fees to keep the firm happy and to keep the lights on and to keep his seat at the firm.

Now, when we examine client statements we often look for IPO's of closed-end funds and syndicate products to see how long they remain in the clients account, for the simple reason that if syndicate products are sold out of the client's account prior to a 30 or 100 day grace period the broker will have the commissions charged back to him. It is easy to see.

Examine your statements. Look for hidden "churn". If you are tired of the abuse, call us.

As an NASD and NYSE arbitrator for over a decade, I learned one thing.

If you want salesmen to handle your retirement livelihood we wish you good luck, but don't' say we didn't warn you.

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