A Major Hidden Risk
Bad advice is provided by low quality advisors who lack the knowledge and/or ethics to provide good advice. It's your biggest financial risk and it's deliberately hidden from you.
Why Hide the Risk?
Would you knowingly buy the recommendations of a low quality advisor? Of course not and that's why weak advisors hide their credentials and business practices from you. If you knew the truth, you wouldn't buy and the advisor wouldn't be able to maximize his or her income from your assets.
How is the Risk of Bad Advice Hidden?
Advisors use five strategies to hide this risk from you.
- They use misrepresentation to market themselves as experts.
- They omit important information that would cause you not to buy what they are recommending/selling.
- They want you to like them because you let your guard down when you like someone.
- They hope you don't ask the right questions.
- They hope you don't ask for their responses in writing.
Why does the Risk Exist?
This risk exists for one reason - money. The risk maximizes advisor incomes:
- People with sales backgrounds can enter the industry quickly and cheaply.
- Poorly trained, inexperienced advisors can produce income faster than advisors who spend considerable amounts of time in education programs.
- The number one skill for 85% of advisors is selling and not helping investors achieve financial goals (requires significant knowledge).
- Advisors know they will make more money doing what's best for themselves than what's best for you.
