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How Financial Advisors Lie To Themselves

Friday, April 5, 2013 - 11:33 AM
A little self-analysis from Allan Roth:

     I'd like to offer you a glimpse into my profession that, hopefully,
     will help you recognize what to watch out for and what
     well-intentioned financial advisors may do to you. This isn't a
     story about fraud; it's a story about being human.

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cumuluscumulus359 posts since
Jan 16, 2010
Rep Points: 1,678
1. Friday, April 5, 2013 - 11:41 AM
Wished I could have liked this post 100 times. 
Ally6770Ally6770937 posts since
Jan 16, 2010
Rep Points: 2,727
2. Friday, April 5, 2013 - 11:49 AM
Rosie43, Wish I'd seen this article before wasting 6 months
wondering what my financial advisor was trying to do.
cumuluscumulus359 posts since
Jan 16, 2010
Rep Points: 1,678
3. Friday, April 5, 2013 - 2:20 PM
I have never relied upon a financial advisor. If someone is going to **** up my portfolio, it might as well be me.
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
4. Friday, April 5, 2013 - 7:36 PM
Dear cumulus,

I've interacted with several FAs. 

In general most of them are required to pass a few standard exams adminstered by FINRA.  Such exams are generally idenfied by a Series number.  The exams and preparation material is rather heavyly focused on "traditional" theories.  With chaging times and innovations often times it is necessarify to learn much more in real-life. 

Quite a few FAs falls behind in terms of how up-to-date their knowledge is.

Quite a few FAs are so very set in what they learned that simply cannot grasp anything that lies outside of the theory.

Another limitation/hurdle FAs have is the "compliance departments" of their employers.  The rules/policies are that are generally good-identioed, become a sort of straight-jacket that prevent them to do anything "out-side the box".

My opinion is that it is rather easy to analyze the market, and it is quite straightforward to understand various products offered by the FAs, as the disclosure requirements make a large volume of data available. to the clients.  Doing once's due diligence to double/triple check the recommendations by the FAs before actiing upon them, perhaps is essential to one's financial well being!

Yours Truly,
- Anon
ytytytyt64 posts since
Feb 28, 2013
Rep Points: 197