The business of financial advice is highly regulated, so surely there’s nothing inappropriate going on, right? After all, advisors clearly have good intentions and care about their clients, so investors can feel comforted that advisor motives are pure. How can you be sure that your advisor isn’t giving you misguided advice? Numerous studies have even shown that investors are overwhelmingly happy with the advice they’re getting, but new research shows that advisors often believe things that are simply not correct. What EXACTLY is the problem?
Simply put, the well-intended advice you’re getting could be wrong – and costing you substantially. There’s not much consolation in getting bad advice that is given with good intentions. At the end of the day, you’re still getting bad advice. Perhaps the biggest problem is that many investors are not aware. You may not have been aware of it until you visited this website or read STANDUP to the Financial Services Industry. Perhaps the advisor you’re working with doesn’t know it either. The whole reason that we have a problem is that no one seems able – or willing – to acknowledge that we have a problem.
Some advisors do things that often don’t work out. They recommend overly concentrated positions. They chase past performance. They pay little or no attention to product cost. Meanwhile, there’s a whole body of research showing that advisors should be doing the opposite. STANDUP is a call to action. No one cares more about your money than you do. Using this book, you can follow a simple three-step process to protect your financial future:
- Summon the courage to confront your advisor about the advice you’ve been getting
- Ask tough questions to demand accountability (those questions are in the book)
- Demand straight answers
The sincerest apology is changed behaviour. In the end, advisors are going to face a choice: change the advice that they give and keep their clients; or stubbornly continue as they have and lose clients. The time to act is now. STANDUP Today!