Quick Facts
These Quick Facts are responses to questions that reflect your concerns about the quality of advisors and the companies they work for. If you don't see an answer to your question, contact us at info@paladinregistry.com. We'll respond in two working days or less.
Q: Why does Paladin say bad advice is a bigger risk than the stock market?
Bad advice impacts your financial future four ways. You earn less than you should in rising markets. You lose more than you should in falling markets. You are exposed to more risk than necessary to achieve your financial goals. You pay excessive expenses which reduce your net returns. No other form of risk impacts you so many different ways.
Q: How can poorly educated, inexperienced advisors call themselves experts?
First of all, there are no education or experience requirements to be a financial advisor. Plus, they can call themselves anything they choose: expert, planner, advisor, educator, mentor, consultant, etc. There are no regulations that require them to have specific amounts of knowledge to use these titles.
Q: Why is there so much bad advice?
Advisors need very little knowledge to sell you investment products. Plus, companies and advisors make more money selling products than they can providing advice that helps you achieve your financial goals.
Q: Who provides bad advice?
Bad advice is provided by advisors who don't have the knowledge and/or ethics to provide good advice. This type of advisor will also put his or her need to make money ahead of your need to achieve your financial goals.
Q: Why don't Wall Street companies protect me from bad advice?
You've seen the headlines. The companies created the problem to maximize their profits. Protecting you from bad advice would reduce those profits.
Q: What are three simple rules I can follow to avoid bad advice?
When reviewing advisors: (1)Focus on credentials that impact competence and integrity. (2)Minimize the impact of their personalities and sales skills on your selection decision. (3)Obtain all important information in writing. You don't want it to be your word against theirs if you have a problem.
Q: Why do financial service companies place all of the advisor selection risk on investors?
Again, the answer is money. If you knew the credentials of 85% of the advisors selling investment products, you wouldn't buy from them. This would damage the profitability of the companies.
Q: Is bad advice deliberate or a function of the advisor's knowledge?
Unfortunately, it can be both. Some advisors give bad advice, for example invest in a bad product, because they make more money. Other advisors give bad advice because they don't have the knowledge to provide good advice.
