Does the Candyman Have You Hooked? — Consider Discharging Your Investment Adviser

For some, The Candy Man is a fun ditty from the 1971 movie “Willie Wonka and The Chocolate Factory.” The phrase, however, has its origins in a much more sinister past. As stated in the May 1976 article of the Oxford Journal, the etymological origins of the term “candyman” are rooted in a historic coalminers’ strike of 1863 England. The mining companies of that day hired itinerant confectionary salesmen to help evict striking miners from company-supplied housing. The phrase candyman soon became a derogatory term representing someone who appears to be harmless and kind, but has unperceived malintent.

The 60’s revolution brought new meaning to the phrase. The modern candyman became the conniving drug pusher who offers unaware teens a “good time” through free or low cost drugs. His strategic marketing plan was simple and has survived to this day – get kids hooked now and garner huge profits later.

Sadly, some who offer financial advise have taken a page out of the candyman’s playbook. The promise of sagacious advice that will enhance one’s wealth, access to elite and high-performing investment products, and of course, eye-popping performance statistics ridden with fine print qualifiers, lure the investor in. Quietly, the needle is slipped into the investor’s brokerage account and invisible, hard to detect commissions, management, 12b-1, trading, and front-end and back-end fees drain away hard-earned savings. Wall Street reaps huge rewards while investors slowly and quietly lose.

Discharging the investment adviser candyman is often a scary proposition. But like many MarketRiders members have found, liberation from high priced investment help is good for the spirit as well as the retirement account.