posted Fri 11 May 2007 01:20 PM

I wasn’t going to supply free advertising for the company I’m with, but to save someone else from investing with USAA. I think I will. I will say I’ve been a member of USAA since 1985, with insurance, banking and investement accounts. The free phone advice you get from USAA is a minimalist approach and from my experience, not very sound or profitable. However, I can’t speak for the paid finanical planning with USAA.

I recently transferred all of my investments to UBS Financial Services, a highly rated company recommended by my dad who has used them for 25 years. UBS is HUGE. They manage more personal assets than any financial company in the world. Something in the TRILLIONS of dollars. My dad’s money manager put me in touch with one of his managers and we were off to the races.

We were on the phone nearly two hours discussing my financial goals, short-term and long term, before he ever mentioned individual investment ideas. They genuinely want to know about YOU, your family, your goals and your dreams. They are VERY thorough. USAA was like, We’ll put your ROTH in the S&P 500 and split it with the Capital Growth Fund. ok. bye.

With UBS we discussed everything from wills and estates to trusts for my kids, investing risk factors, what my expectations were on returns what my tolerance level was etc. We even discussed topics such as future obligations and effects of my parents estates, a topic I wasn’t comfortable talking about but necessary none-the-less. Very, very thorough.

The Company did an in-depth 42-page Financial Goal Analysis and another 40-some page quasi-investment strategy based on the amount of money I planned on transfering to them and where I wanted to be in 20 years. As opposed to a $400 fee for one-on-one counseling with USAA, none of this cost me a penny.

Once I transfered the money, there was no waiting period. The money was disbursed into the exact accounts my planner listed within HOURS of them receiving the transfer. Not to mention, I have constant and immediate email and phone contact, world-wide, with my planner. When I email him, I usually have a response within a couple hours. You don’t even get that kind of service aboard the same ship.

I had investments with USAA for a few years with no counseling, no advice, and somewhat poor returns as compared to similiar funds with other companies. Pretty much on my own unless I wanted to pay $400/yr for a counseler. As my UBS planner told me, USAA is a top of the line insurance company but their funds are not that great. This is public knowledge with a little fund research. Once again, I am speaking out of personal experience. I am not intent on bashing USAA in any way. Just didn’t work out too well for me.

So. give UBS Financial Services a hollar before you commit to USAA. Like I said, after dealing with UBS’s outstanding customer services and genuine concern for your goals, I transfered every account I had with USAA except my credit card. I think you’ll be more happy in the long run. I know I am.

My dad is a retired Naval Officer. He told me he has made outstanding double-digit returns with them for the past 25 years. Not withstanding the market trouble in the 80’s and following 9/11, there’s no doubt in my mind that he’s not embellishing the truth.