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Beware of the Knucklehead Advisors

Investing Planning

Some financial advisors are real "knuckleheads."

I'm sorry to say it... but it's true... and you need to beware.

(For the record: I love my profession. My gripe is with our industry).

A while ago I participated in a large "Focus Group for Financial Advisors."

Most advisors described themselves with some combination of these adjectives:

  • Experienced
  • Independent
  • Comprehensive
  • Dedicated
  • Objective
  • Honest
  • Holistic

Sounds great to me!

  • The average tenure was 22 years in practice
  • The average advisor managed or advised 120 active households
  • The average advisor considered themself a "go to" advisor for their clients

Again, all good things!

We then discussed how we (as advisors) Learn, Research, and Keep Ourselves Informed.

  • Most preferred marketing brochures with pictures over research documents or white papers
  • Most relied on wholesalers, or their their broker-dealers for marketing material and investment selection  
  • Most preferred education pieces that were no more than 2 pages long and those that took less than 5 minutes to read

Wait, WHAT?!

It gets better... the last section was about the Advisor Tool Chest

  • Most ranked "emotions" as their top sales tool
  • Most ranked "storytelling" as their top skill
  • Most ranked "sale" as their top objective

Mind blown!!!!  Who are these people?!?!?!?

So before you hire an Advisor, take their advice, or put your financial well being into someone's hands...

Ask them these questions ...

  1. Why should I trust you?
  2. What makes you qualified?
  3. What makes me the right client for you?
  4. What makes you the right advisor for me?
  5. What do you believe to be your greatest skill?
  6. What do you believe to be your highest priority?
  7. How do you educate yourself and who educates you?

And last but not least... ask them to put in writing that they will serve you as a Fiduciary

Or if compliance prevents them, request that they do their best to at least act in a Fiduciary Manner.

Good luck and thanks for reading,