Things your financial advisor won't tell you


We want you to know what is important to brokerage firms, insurance companies and banks. You might have guessed… it is not you.


1I am an asset gatherer, not an asset manager.

2I am not a fiduciary and not required by law to act in your best interest.

3 Company I work for has sales meetings, not investment management meetings.

4 In some cases I get paid a yearly management fee on top of the actual investment managers getting paid their fee. In addition, I get paid commissions and trailers on the sales of annuities, mutual funds, structured investments, UITs, bonds, closed-end funds, etc.

5My income from the investment often dictates the types of investments I recommend.

6Some investment products have hidden fees.

7I like to call you at the end of the month in order to meet my sales quota (aka production).

8My company provides advisor rankings to show who brought in the most new assets/new accounts or to show who sold the most investments du-jour. A ranking list to show which advisor has performed the best for their clients does not exist.

9I sold you a structured product, closed-end fund, B or C share mutual fund, an annuity…because I got paid well and costs were hidden.

10Often, I get paid mutual fund 12B-1 fees which are hidden.

11The annuity I sold you can cost anywhere from 3-5% per year that you might not be aware of and certainly do not see on your monthly statement.

12A “comprehensive” financial plan I am suggesting takes me about 30min to complete and all I have to do is plug in numbers and a desired growth rate into a software program. How am I going to achieve that growth rate is a different story since I spend most of my time looking for new clients.

13I manage several hundred accounts and you are #? on my list.

14You have to be fully invested at all times and cannot be in cash since I only get paid on the fully invested portion of the portfolio.

15Looking in the review mirror and following Wall Street’s consensus opinion is my investment strategy.

16Majority of your investments underperform the market, but your statement makes that impossible to figure out.

17My research is outdated and limited strictly to my company’s analysts.

18Even though I manage several hundred accounts, my company is asking me to find more.

19I might switch my current brokerage firm or bank. The new one will most likely not be any better for my clients, but it will give me a substantial upfront bonus. I will most likely repeat that in a few years.

20 I am an excellent salesman.