The best part about Suze Orman’s new Yahoo Finance column, “What to look for in a financial adviser,” is the comments from angry financial advisors.
“Advisor’s [sic] need to make a living,” they whine. “Of course a broker is going to make a commission….they have to eat too,” says another commission-based apologist. And, in one particularly eloquent quote, a financial adviser explains what he thinks of Suze’s advice: “It’s madness!!!!!!”
My goal, whether or not I used a financial adviser (I don’t), is to make the highest returns with the least headache. I’m sorry, but my financial adviser’s income isn’t my concern — and it shouldn’t be yours, either. But try to make this case somewhere online and watch the commission-based financial advisers come out of the woodwork and begin whining about how they need to eat and how they can deliver better returns than index funds (despite many years of data showing this isn’t true). Perhaps it may be if you compare yourself to the average American who has no idea what investing means.
BUT THE PEOPLE READING THIS SITE ARE READING A PERSONAL-FINANCE BLOG. You’re all savvier than regular Americans, so please don’t fall for this BS of paying a commission-based adviser. Yes, they “need” to make commissions so they can deliver “higher” returns. Sure they do. Coincidentally, I also “need” three strippers and a Bentley with wood trim and built-in baskets of chips, salsa, and champagne, but that doesn’t mean I’m going to get it. Young people are savvier than you think. We know enough not to pay for results that, on average, won’t materialize.
See Suze’s column and the accompanying comments here.