Company vs. Advisor

Financial service companies are in business to make money and they can make a lot more money doing what's best for themselves than for you. This core conflict of interest is the source of most headlines that document industry scams, ethical lapses, and fraudulent behavior. This is a major reason why the company isn't as important as the advisor.

Virtually all large financial service companies are public entities. That means they have to be concerned with analyst reports and earnings growth. Plus, executives want big salaries, bonuses, and stock options. They have a lot of pressure to place the interests of their companies ahead of yours.

Another reason to minimize the influence of companies is they don't know you, your needs, or your goals. That is the role of the advisor. Companies don't give financial advice, advisors do.

Also, you can't relate what you see on TV to the quality of advice and services that you'll receive from companies. They spend hundreds of millions of dollars per year on advertising that creates name recognition. Just like personalities have nothing to do with advisor competence and integrity, neither does the name of the company.

When you select an advisor, focus on the credentials of the professional and not the company. Company facts don't impact the achievement of your financial goals. In fact, all too often, it's just the opposite. Company interests undermine your ability to achieve your goals.