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Mark Sanchez bilked out of millions of dollars


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6 minutes ago, Villain The Foe said:

Someone should have recommended you to Sanchez then! I dont know how smart or dumb people are. I know for example that im not the smartest, I just know that if there's something that I want/need to do thats important, I go find out and read up on it. 

I've stuck my toes into the stock market at one time, but I did it in the beginning once I started taking my finances/savings more seriously. It didnt go well given the emotion and wanting to watch the price every 15 minutes. Buying on the highs, selling on the lows etc. You know how it goes. It took a couple years to control that impulse, but the more I learned the more I realized that for me, that type of market simply wasnt a place for me at all. I dont like to give my money anywhere and not have something of value in return during the transaction. But I would say that these things are very easy to learn if you simply learn about a particular company and product and how it be implemented into society. 

And Im not great at all with those exotic investments that made guys like Hank Paulson filthy rich. I do however look into companies involved in tech. I've trained myself however never to give my money without receiving something of value in exchange. Because of that I forgo certain investments like stocks. A company I've been looking into (for fun) is AMD. 

The company took over the gaming console market owning the chips in every major gaming console unit. They've been advertising their new 14 nanometer GPU chip Polaris and from reports, the power wattage is 2.8 times better than the previous 28 nanometer config, runs cooler and is aimed at the 84% of the market who buys "budget GPU's". The greatest thing about this new GPU is that it gives similar performance to the current-gen GPU's (GTX 980's $600) for a fraction of the price $230 as well as wattage. What was more impressive is that yesterday I just seen someone overclock one of these GPU's by 26%. The price-to-wattage-to-performance ratio is insane on this config. 

AMD also just confirmed that they've won the chip rights for the next-gen console systems again, which mean developers will be creating their engines around the AMD chip standard.

In the last 2 months I've seen the stock of this company go from $2.50 to $5.40 today. Many people are sleeping because AMD doesnt have the "NVIDIA" name/branding in the industry, but their tech is quickly taking over the market while NVIDIA cant compete in the console market so their basically regulated to the "high end" GPU market which makes up the other 16% of the market. AMD is now developing their ZEN CPU at the very same time that Intel has made it publicly known that they're looking to get out of the gaming CPU business. 

 

As for me though, though I can understand things like this ^^^ with a little bit of homework on the company/industry, I've learned from a few people that its not about the price, especially if you're not looking to cash out, but about ratio's and margin's. Once I fully understood that, I've made my little bit work for me. 

Now I stop looking at the price in terms of value, but to the ratio's and margins. The moment I started doing it, thats when I began to see my savings grow. 

 

Well..thats speculation, not investing.  I invested $10,000 in DELL when I moved to NC in 1995. It grew to $120,000. Same with NOKIA.  Today?  I own very few stocks.  

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Mark has bilked several NFL teams out of millions as well, so what goes around, comes around.

Not fair. Could've happened to anyone. That firm was regulated by the federal government. I feel bad for him. 

I am a CFP and manage quite a bit of money. I can tell you , all the credentials in the world wont save you from a bad advisor. The majority of people "fukked out of money" is from an advisor they kno

5 minutes ago, Lizard King said:

That's important but my question is, if you use lowcost vanguard fund, how do you get compensated. don't understand it

We charge a fee of 1 percent to manage money and provide year round advice.  When done with Vanguard, total client costs are 1.2 percent on average.  Thats lower than many mutual funds. I cant say more...  

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7 minutes ago, southparkcpa said:

Well..thats speculation, not investing.  I invested $10,000 in DELL when I moved to NC in 1995. It grew to $120,000. Same with NOKIA.  Today?  I own very few stocks.  

Speculation is right. But when you're taking on "Low/High risk" then its inherently speculation and not investment, which is pretty much what Sanchez was doing. And that speculation is always high (imo) when you have to relinquish your money with nothing of value in return immediately. 

This is why I dont deal in the markets, because no matter the type of risk (low/high) you'll be taking on 100% of it while most likely paying client fees to do so. Thats not my cup of tea! 

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Just now, southparkcpa said:

We charge a fee of 1 percent to manage money and provide year round advice.  When done with Vanguard, total client costs are 1.2 percent on average.  Thats lower than many mutual funds. I cant say more...  

???

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That's important but my question is, if you use lowcost vanguard fund, how do you get compensated. don't understand it

Advisors/Brokers are compensated several different ways:

1) Upfront commissions

2) Percentage of assets under management

3) Hourly or flat fee rate

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People need to learn how to manage their own finances, because its easy enough to explain it to a 12 year old. This is why when I see people lose 7-8 million dollars I SMH because they gave someone 7-8 million of their dollars to potentially lose. 

Certain things in your life I would say is better being done by you. The first place to start, is learning "What is time and what is money". You never get time back, and that money represented his time and effort. He gave it to someone who didnt have a problem not taking into consideration his time and effort. No one will take your time and effort more seriously than yourself. 

I've had people laugh as me and call me a jackass for some of the things that I do with my money. 7 years later, I have yet to say that someone robbed me or took advantage of me. Im content with that. I learned by doing, gaining, losing, understanding. 

I've taught myself that the best game is the long haul, and doing it yourself. 

 

Is letting it all ride on Glennon a wise investment?

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1 hour ago, gEYno said:

But it reads as if the guy was part of some legitimate firm.  I don't have any real legal knowledge, but shouldn't the firm that employed him be responsible for the money, should it be proven that he acted improperly.

The thing people do not fully realize is that anyone is capable of going rogue, no mater their credentials or the reputation of the frim they work for.  There are loads of stories just like this where the investor has not granted their advisor or brokerage firm permission to make discretionary investments, but they do it anyway.  Wells Fargo Advisors is going through a spate of lawsuits filed by retail investors because their employees have conducted what the plaintiffs claim are multiple unauthorized transactions.  Litigation to try and make yourself whole by proving wrongdoing is not cheap and not a slam dunk either. 

Years ago my former accountant advised me to consult with a financial advisor.  For a full analysis the cost was 6-digits.  However, if I invested funds from my sizeable stock portfolio in certain "investment grade" instruments (claimed to be the same as what big institutional investors and insurance companies use) there would be no fee.  I choked this guy with my dust.  This was shortly before the last big crash and God only knows what those "investment instruments" were -- probably some type of derivatives that would have left me penniless.

I could never get my head around trusting someone else to invest money on my behalf.  If you do not have time to manage your own portfolio of individual stocks, there are always index funds.  Obviously, Mark didn't make time to read his monthly statements...

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16 minutes ago, Villain The Foe said:

Speculation is right. But when you're taking on "Low/High risk" then its inherently speculation and not investment, which is pretty much what Sanchez was doing. And that speculation is always high (imo) when you have to relinquish your money with nothing of value in return immediately. 

This is why I dont deal in the markets, because no matter the type of risk (low/high) you'll be taking on 100% of it while most likely paying client fees to do so. Thats not my cup of tea! 

Unless you have a govt pension....  you will be poor.  I stand on the statement of buy the Vanguard balanced Index. It is a moderate fund. Google it.  Had you owned it the last 20 years, through 911, 2008 etc.. you would be fine.  It moves with the market but us better than 80 percent of all funds out there.

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6 minutes ago, Rexorcism said:

Is letting it all ride on Glennon a wise investment?

No, but I'd put a good percentage on him though. The bandwagon is empty so you can get alot of Glennon for very little at this point. If he succeeds in the future and the value goes sky high, start selling your shares the moment you hear Mike Glennon on TV and from the lady charging your items at the checkout of your local supermarket. That'll let you know you have about 2 weeks to get out! lol. 

 

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4 minutes ago, Il Mostro said:

The thing people do not fully realize is that anyone is capable of going rogue, no mater their credentials or the reputation of the frim they work for.  There are loads of stories just like this where the investor has not granted their advisor or brokerage firm permission to make discretionary investments, but they do it anyway.  Wells Fargo Advisors is going through a spate of lawsuits filed by retail investors because their employees have conducted what the plaintiffs claim are multiple unauthorized transactions.  Litigation to try and make yourself whole by proving wrongdoing is not cheap and not a slam dunk either. 

Years ago my former accountant advised me to consult with a financial advisor.  For a full analysis the cost was 6-digits.  However, if I invested funds from my sizeable stock portfolio in certain "investment grade" instruments (claimed to be the same as what big institutional investors and insurance companies use) there would be no fee.  I choked this guy with my dust.  This was shortly before the last big crash and God only knows what those "investment instruments" were -- probably some type of derivatives that would have left me penniless.

I could never get my head around trusting someone else to invest money on by behalf.  If you do not have time to manage your own portfolio of individual stocks, there are always index funds.  Obviously, Mark didn't make time to read his monthly statements...

You sound smarter than 80 percent of all people. Good for you.  

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12 minutes ago, Il Mostro said:

The thing people do not fully realize is that anyone is capable of going rogue, no mater their credentials or the reputation of the frim they work for.  There are loads of stories just like this where the investor has not granted their advisor or brokerage firm permission to make discretionary investments, but they do it anyway.  Wells Fargo Advisors is going through a spate of lawsuits filed by retail investors because their employees have conducted what the plaintiffs claim are multiple unauthorized transactions.  Litigation to try and make yourself whole by proving wrongdoing is not cheap and not a slam dunk either. 

Years ago my former accountant advised me to consult with a financial advisor.  For a full analysis the cost was 6-digits.  However, if I invested funds from my sizeable stock portfolio in certain "investment grade" instruments (claimed to be the same as what big institutional investors and insurance companies use) there would be no fee.  I choked this guy with my dust.  This was shortly before the last big crash and God only knows what those "investment instruments" were -- probably some type of derivatives that would have left me penniless.

I could never get my head around trusting someone else to invest money on my behalf.  If you do not have time to manage your own portfolio of individual stocks, there are always index funds.  Obviously, Mark didn't make time to read his monthly statements...

When I learned what derivatives were and how they're created to have perceived value, I knew instantly that those markets were an absolute joke/trap. 

I laughed when I read that you "choked him with your dust". Good for you! 

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People spend more time researching what computer, phone, car they are buying than who they are giving all of their wealth to manage.  Even then with lots of research there are no guarantees.  I am in the minority here but if you have made a good deal of money from whatever you do for living, especially something like this you should say F'k the returns and put it in the most safe conservative thing that you can. 

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22 minutes ago, southparkcpa said:

You sound smarter than 80 percent of all people. Good for you.  

I don't know how smart I am, but thanks for the comment.  I have made some good investments but also had some absolute stinkers. Luckily, the bad ones fell into the speculative category and, while they cost me money cumulatively they were not huge individual losses.  But they really add up over the years.  It is easy to go wrong, especially when you think you are on a hot streak.  Also, it is very easy to incorrectly hang onto winners too long, leaving found money on the table, and not keep enough in cash for opportunistic buying.  

The worst thing is sucking it up and not panic selling during a crash.  Staying disciplined and riding out the 2008 crash until the market righted itself was an absolutely gut wrenching experience.

I have a little background (a former marketing job required me to have an NASD Series 7 and my mother was in the brokerage business), but have never been a financial professional.  I feel more and more trepidation as I get older and am hunkering down with more conservative, and no speculative, investments. I firmly believe that a low net cost index fund is the best fit for the vast majority of investors.  The current quick trade market can be lucrative high volume, high speed traders but stacks the deck against the little guy looking for sound long term investments

I still find it unfathomable, even for athletes, to not watch their money carefully, but it seems to be a common problem.

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1 hour ago, southparkcpa said:

Unless you have a govt pension....  you will be poor.  I stand on the statement of buy the Vanguard balanced Index. It is a moderate fund. Google it.  Had you owned it the last 20 years, through 911, 2008 etc.. you would be fine.  It moves with the market but us better than 80 percent of all funds out there.

 

Thanks for the advice. Years ago when I worked for a company named Bowne, they had our 401K's set up in Vanguard accounts. That was long before I gave a rats ass about being 65+ (I was like 19 at the time). Now? I dont worry about 401K's or pensions of any kind. 

 

Vanguard moves with the market, but its the market itself that im concerned about. Besides, Vanguard cant immediately give me something of value in exchange for my money....so I cant use them. That's something that during my learning was an absolute must. DO NOT forgo your money without getting something of value in exchange. Wealth is not created or lost....its simply transferred. Make sure to get something in exchange of value immediately for your dollars. 

 

I use Gold and Silver. The ratio in the ground (The dirt) is about 16/1 Silver-to-Gold. On the markets however the ratios fluctuate, so I use it to my advantage. 

I started this years ago after reading books how to flip your assets based on ratios. For example, say I purchased 100 oz silver when the ratio was 65-1 S-to-G. which was a bit more than 1 oz of gold. Based on the ratio, Gold is overvalued and Silver is undervalued. Once the ratio got down to about 33/1 I'd exchange those 100 oz and pick up 3 oz gold given that based on the market ratio (not the ground) Silver was overvalued and Gold was undervalued. Once the ratio went back up to around 65-to-1 I'd flip the 3 oz of gold into 195 oz of Silver. Once the ratio hit the low 30's I'd exchange the 195 Silver to 6 oz of Gold. Once the ratio hit 65-to-1, cash out the 6 oz of Gold for 390 oz of Silver....so on, and so forth. 

I would be able to flip that initial 100 oz of Silver ($1,800) into 390 within just a few years, and thats just on that initial 100oz purchase. After so many years of buying/flipping I realized, that my main concern was storage. Once I figured how to take care of that (Up to a certain amount, convert a portion into gold and keep it gold given the concentration of wealth then store that in a nice place) I realized that I no longer have a financial problem. I've pretty good financially yet never had a job that paid over $40,000 personally.

My wife and I have some other small things set up but thats just for cash flow, however, those opportunities were only possible based on my decision years ago. 

 

That Dell move was right for you though. A few years ago I heard about Bitcoin back when it was 2 dollars. I laughed at it, then proceeded to watch it go to $1,300 in a span of 2 years. The greed in me was a bit pissed for about a month for not taking advantage. Then I realized, that though I didnt gain anything, I didnt lose anything either. Not everything is for everybody...and why get greedy when what you're doing is working for you? Most of all, my type of investments allows me to get liquid immediately if need be. The best thing I learned when it came to finance is what money is, what it represents, and to buy ratios, not price through dollar-cost averaging, never buy when the ratios are inbetween 45-1 and 55-1, and flipping will provide compound returns. I've been in the black ever since, yet it had absolutely nothing to do with the price of the assets or how the price fluctuated. 

This is my "Dell". lol. 

 

 

 

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1 hour ago, southparkcpa said:

The fraud aside...  the LARGE houses you speak of have some of the worst advisors. Young, aggressive, commission driven.

They use funds recommended by the firm. the firm receives back door fees from these fund companies.

 I would add, any mutual fund with an expense ratio above .65 should be avoided.

I have been with the largest for 30 years. While it was fun to "win" a cruise to the Bahamas from fund companies back in the 80's those days are long gone and you should know that. The backdoor stuff has gone as well except for a learning seminar done locally now and again.

While I do have some clients that would rather pay me by commissions, I did less that 200k in commissions last year, the bulk is fee based. I charge from 1/2% for accounts over 15mm to 1 1/2 % for a $500,000 account. I have thousands of funds I can use and it has not been "suggested" what fund I should use in over 10 years.

The new DOL rule will have everyone doing business this way soon. Also, I cant swear to  this but I think the company requires these new "kids" they hire to get their CFP within 5?? of years now.

 

 

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What do you give the financial advisor job? I say 20 years and it will go the way of the Dodo bird.  They are pretty close to worthless to the average investor.  They have their best interests in mind, not yours.

 

the millennials will almost all go with robo investing- betterment or wealthfront etc. tax loss harvesting, computer algorithms, etc.. So much better than Vinnny knows a guy- who throws you in high fee low maintenance mutual a and loses you're number.

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Amazing how these guys get built up into this dream world of entertainment and fame where they really do become laeger than life, almost untouchable. We think we know them but always from 50 feet away. Creations of media and PR a lot of the time. Then a guy like Mark Sanchez comes along and he's EXACTLY what you think he is. An oblivious moron. 

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4 hours ago, southparkcpa said:

Mark has bilked several NFL teams out of millions as well, so what goes around, comes around. :)

LOL. Ill-gotten gains, as they used to say. And what more ironic way to lose the money than in a business that sells sports tickets. I can think of a few people who would like their money back from having to watch some of Mark's excruciating performances.

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2 hours ago, NEWNYJETS said:

I have been with the largest for 30 years. While it was fun to "win" a cruise to the Bahamas from fund companies back in the 80's those days are long gone and you should know that. The backdoor stuff has gone as well except for a learning seminar done locally now and again.

While I do have some clients that would rather pay me by commissions, I did less that 200k in commissions last year, the bulk is fee based. I charge from 1/2% for accounts over 15mm to 1 1/2 % for a $500,000 account. I have thousands of funds I can use and it has not been "suggested" what fund I should use in over 10 years.

The new DOL rule will have everyone doing business this way soon. Also, I cant swear to  this but I think the company requires these new "kids" they hire to get their CFP within 5?? of years now.

 

 

fair enough but when I see accounts from some of the BIG houses, SOME of the advisors  use funds with expense ratios of 1 to 1.25 and THEN charge a fee of 1.25 etc...  I just dont agree with that.  Of course MANY good advisors are with the big houses. Not enough IMO.

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3 hours ago, NEWNYJETS said:

I have been with the largest for 30 years. While it was fun to "win" a cruise to the Bahamas from fund companies back in the 80's those days are long gone and you should know that. The backdoor stuff has gone as well except for a learning seminar done locally now and again.

While I do have some clients that would rather pay me by commissions, I did less that 200k in commissions last year, the bulk is fee based. I charge from 1/2% for accounts over 15mm to 1 1/2 % for a $500,000 account. I have thousands of funds I can use and it has not been "suggested" what fund I should use in over 10 years.

The new DOL rule will have everyone doing business this way soon. Also, I cant swear to  this but I think the company requires these new "kids" they hire to get their CFP within 5?? of years now.

 

 

Boom goes the effin dynamite

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1 hour ago, southparkcpa said:

fair enough but when I see accounts from some of the BIG houses, SOME of the advisors  use funds with expense ratios of 1 to 1.25 and THEN charge a fee of 1.25 etc...  I just dont agree with that.  Of course MANY good advisors are with the big houses. Not enough IMO.

This is coming from someone who said they charge 1% and couldn't get into what their other methods of compensation were?

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Just now, roscoeword said:

Marks loss is our gain - what an interesting thread this is. Some good advice here that can actually assist us in the real world.

Yeah like for starters, having a clear understanding up front of how the guy advising your wealth is being compensated...yeesh!

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1 hour ago, Lizard King said:

This is coming from someone who said they charge 1% and couldn't get into what their other methods of compensation were?

No , I simply dont want/think its appropriate to discuss business on a JETS site. I have no other methods.  Its 1 percent and it is less as the account is above certain levels.

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3 minutes ago, neckdemon said:

so basically what happened is called karma. he was given a contract by an idiot that he wasn't worth. then in true sanchez fashion.......he buttfumbled the money. 

Simple, predictable but still well played.  LOL

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58 minutes ago, southparkcpa said:

No , I simply dont want/think its appropriate to discuss business on a JETS site. I have no other methods.  Its 1 percent and it is less as the account is above certain levels.

1. Buy BRK

2. Hold

There. I just saved everybody a point and a blowjob.

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