The Truth About Financial Advice: What 28 Years as an Advisor Has Taught Me
After 28 years in the financial industry, I’ve seen a lot. When I started, we primarily sold stocks, bonds, and funds. But as time went on, we added annuities and high-priced variable life insurance. Back then, I was young and naive, assuming this was how the system worked. Only later did I realize that brokerages pushed these products because they made more money selling them, not because they were always in the client’s best interest.
Real Advice Is Hard to Find
One of the biggest challenges in this industry is getting straight advice. Take this example: a client asks if they should invest in their company stock, but instead of giving a clear answer, the advisor pushes a life insurance policy. Why? Because it’s a high-commission product. This isn’t uncommon, and it’s one of the reasons it’s tough to find truly unbiased advice.
Lessons From the Past: Warren Buffett in 1999
In 1999, Wall Street claimed Warren Buffett had lost his magic touch. A year later, after the dot-com bubble burst, he was celebrated as a genius again. What happened? Buffett stayed true to his strategy, investing in stocks and businesses with solid fundamentals. It’s a valuable lesson—stick with what works, even when the market is full of noise.
Why Some Advisors Want to Keep Your Money With Them
Many advisors push you to keep all your assets under their management. Why? Fees. The more money you keep with them, the more they earn. But real, sound advice doesn’t revolve around pushing products or keeping all your investments in one place. Sometimes, the best decision might be investing in your own company, real estate, or even building your own business.
Finding the Right Advisor
It’s simple: find an advisor who primarily deals with stocks and bonds, someone who isn’t afraid to give advice on real estate or your own company stock. Look for someone who isn’t tied to high-commission products like annuities or variable life insurance. You deserve advice that’s in your best interest, not theirs.
Disclaimer: The views expressed here are for educational purposes only and should not replace personalized financial advice.
