In the confusion of figures, facts, calculations and regulations it is easy to allow the mind to go blank and let the financial advisor do all your heavy mental lifting. The scary thing is that this approach means that you have just put our future financial wellbeing into the hands of a stranger. Well…perhaps not a total stranger but certainly not someone you can rely on 10 to 20 or more years down the line. So before you throw caution to the wind, here are a few things that your financial advisor isn’t telling you.
They do not have your back
Your account, once signed and sealed will most likely be handed over to someone else to manage. A fair portion of a financial advisor’s income is derived from new sales so your importance has been downgraded in favour of latest prospect.
They are not invested in your future
Most financial managers now operate more like salespeople, where they are incentivised with commission that is earned from signing you up. Consequently, the financial manager will look to steer your decisions towards the direction that will benefit them the most.
They are not experts in their field
Many companies have standardised plug-and-play systems that are used to calculate the proposed investing strategy, so all the financial advisor has to do is enter in your data – age, status, income, etc. to get an investment plan. Be sure to look into the qualifications and background of your financial advisor before relying too much on their suggestions.
Take financial advice with a pinch of salt and get a 2nd or even a 3rd opinion before you commit.