Secrets Revealed From A Retired Advisor

Do you ever wonder what your advisor is hiding? What he or she can't say? What they're really thinking? We asked one of our friends and past advisor, who wishes to remain anonymous, to reveal what he really loved and hated about his role as an advisor and what you should know as a client. Here are his responses below:

Secret #1: We have a boss too

Some individuals may recognize this and some don't but we a have a boss too. Even though you may have hired us and are giving us access to your funds and retirement, the bottom line is that we work for the bank or financial institution. It is our main responsibility to sell you products that the bank or institution offers and we are held accountable if we do not perform. We have to do what is right by our boss first and foremost. 

Secret #2: We Are In Sales 

All though we are here to advise you financially, ultimately we are in sales. Our job is to sell you on opening accounts and investing with us. This is not always a bad thing! Most people do not have any retirement to speak of and opening these accounts could be extremely beneficial to their future. However, there are different types of advisors that may have different sales quotas. Remember this when searching for an advisor. 

Secret #3: Your Money Is Your Responsibility 

Being a financial advisor doesn't necessarily mean we are looking after your holistic financial life. Our responsibility is your investments, your responsibility is everything else. Our duty is to get you invested in your accounts and to check up with you on a semi-regular basis. However, your money is still your responsibility alone. Do not think your financial advisor is constantly checking your account because we may have hundreds of clients to worry about, even thousands if we work at a bank branch. Please take time to check on your accounts regularly. 

Secret #4: We Do Not Promise Any Returns 

It is illegal in our industry to promise any returns so if you have heard that we are guaranteeing a return, run. We cannot promise you on any outcome we can simply show you historical data and facts about the investment. It is up to us to sell you that the investment may be a good choice for you but we cannot promise this will work out. This means, no matter what financial advisor you go to, no one should be promising returns. 

Secret #5: The More Money, The More Attention

In our industry, advisors are can be classified by what network you serve. This could be bank branch, high net worth, or ultra high net worth. Most advisors who have their own shop and are not affiliated with a bank will only want to speak to you if you have substantial investable assets. That means if you are between $0 - $500,000 of investable assets, you may not find advisors eager to work with you. Advisors like to cater to ultra high net worth clients if they can because this means more money and less headaches (clients) to deal with. You may get snubbed by some advisors. 

Final Thoughts...

Financial advisors do want to help you get on the right track however, we also have bosses that rely on us to perform a certain way. We are not always in full control of the situation and many clients do not realize this when they come to us for advice. This is a regulated industry that has strict rules on what we can and cannot do. There are great resources like brokercheck.com to use if you are concerned about your advisor.