Do you really know who you are taking your financial advice from?

2 thoughts on “Do you really know who you are taking your financial advice from?”

  1. Hi Steve,

    I have to say that I agree with everything you said, especially the part about the opinion and the asshole! It’s so true that everybody has one! 🙂 … or at least one… :p

    Becoming a licensed financial planner is far too easy in my own asshole… oops opinion. Most “professionals” out there lack proper training and even proper comprehension of what they do and yet they are licensed to give advice and sell products they don’t even fully understand. I can tell because I have been a witness of that thousands of times in my professional life.

    But they are professional at one thing at least : they do know how to sell their stuff and mix you up with all the discounts they offer. In fact they are real professional salespersons and most of their trainings actually focus on that – sales!

    Most advisors in the industry are either paid on commission or they get incentives or bonuses based on their sales. They are “forced” to meet some standards and to cross-sell products to customers or they can get penalized or even fired. This whole industry is full of shit in my own opinion and based on conflict of interests.

    Plus, to get a license, it’s almost as easy as to get a driver’s license. Some are good drivers even though the training is thin and some are bads… many are so-so… Financial institutions Call center’s are filled with green licensed “professional” advisors who couldn’t tell the difference between a stock and a bond, who don’t even know what is offer and demand and the effect it has on prices… But they can plan your retirement and sell you a retirement mutual fund!

    Anyway… as you can see I have a lot to say on the subject and for all those reasons I prefer to be my own advisor.

    We are always better served by ourselves!

    Thanks

    1. Allan – I agree, we ARE better off being served by ourselves the great majority of the time. I like to use these “professionals” (ie: financial experts, tax guys, etc) if I have a specific question about a very specific thing, but not as a way to completely hand over my entire retirement or tax situation. That’s not for me! 🙂

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