Do you have a financial advisor that you have trusted with your money?
Are they a good friend or family member of yours?
Are you 100% positive that you are getting the best, unbiased advise? If so, how do you really know?
How much could they be taking away from your family?
I'm not referring to financial advisor fees that you may be paying, although that could be part of it too. I'm more referring to how their advice could be costing you and your family your financial success.
Don't get me wrong. I believe most financial planners/advisors are well-intentioned and want to help people. I know - I used to be one of them about a decade ago. I did that profession for four years. My whole purpose was to at least give my father back one year of his life. I grew up hearing things, like "I'm going to have to work until I'm dead." or "I'll never retire." Therefore, I made it my mission to help him out.
What I discovered pretty quickly is the same thing you've probably noticed - People are worse off today than they were before the 1970's when financial advising became a greater force, despite more advice and experts than ever.
Because they don't work for you as the client, they work for their company!
Who gives them all of their great training? The companies trying to sell you products.
Where do they get this training? From companies that offer you their products and services.
I learned this pretty quickly and this is the reason why I knew I couldn't be a financial advisor and feel like I was being completely honest. If I was, I would have shown you lower returns (because those aren't completely accurate), I would have shown higher inflation rates (government manipulates those numbers), and I would have considered life's hiccups since you can't put your life into a calculator.
This is why I'm here changing the inevitable financial road people are heading down today! Following Fidelity's lovely, limiting green arrow will lead you to poverty, not prosperity!
With me so far?
Financial advisors and planners are not taught, nor are they teaching you, basic principles to creating wealth. It's always about the product. Here are a few questions you can ask them or yourself to know if you are losing money with your financial person.
- Are they paid any commissions on what they are recommending?
- If you are an entrepreneur, are they encouraging you to put more money in your business, or in their products?
- Are they earning more money on what they sell you, or doing the same investments they are recommending to you? Do they even have those financial products themselves?
- Do they seem to offer that "Magic bullet" that will make you financially free?
- Do they teach more from scarcity or abundance?
My experience has taught me that they forget the #1 thing about ways to create wealth - investing in yourself and your profession. Nearly every one I've met (other than those I refer business to) focuses more on numbers and products, and less on you and your ability to create wealth.
You NEVER see anyone on the Forbes list of richest people that saved in mutual funds and financial products. They were all business owners, and a few sophisticated investors...who are also business owners.
YOU are the #1 financial product, not their financial crap!
Best lesson I learned from a business owner was when he asked me "Chris, if I invest $10,000 with your products, I may make $1,200 this year. But if I invest $10,000 in my business, I can usually make about $20,000. Why would I ever invest with you?"
So how much could your financial advisor be costing you right now?