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I love these hilarious comments from angry financial advisers

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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.

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25 Comments on "I love these hilarious comments from angry financial advisers"

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Kevin Sweeney
Kevin Sweeney
9 years 29 days ago

Until my net worth hits +/- $1,000,000 I won’t be seeking out a financial advisor. And even once I hit that number (positively), I’m not so sure.

woody
woody
9 years 29 days ago

If those financial advisors are so confident that they can do a good job, why don’t they charge commission as a percentage of the ROI on the assets? For example, if they manage 100K for me and they make me 15K in a year, I’ll give them a percentage of the proceeds, If they lose money, they won’t get a dime (or even better, they should pay me). That would take out any conflict of interest – the more they make for me, the more they make themselves.

neha
9 years 29 days ago

woody,

because financial advisors are not fortune tellers. no on can really predict the market. if they could, all the good financial advisors would charge the way you’re suggesting — probably a huge percentage.

Adam
Adam
9 years 29 days ago

Ramit,

I would be interested to hear your thoughts on Suze’s advice in general. Future topic, maybe – she’s good, but I still question some of the ideas she pushes.

thefeeonlyplannner
9 years 29 days ago
>>>>>>why don’t they charge commission as a percentage of the ROI on the assets? Because it is illegal per SEC regulations. That is why the hedge funds industry wants not to have anything to do with the SEC because they can do whatever they want and get 20% of profits AND still charge 2% per year!! Full disclosure: I am a Fee Only independent financial plannner. I agree with most of Suze’s article. In general, her advice is decent for the majority of her audience. When the complexity goes up just a little bit she usually does not know how… Read more »
Customers Revenge
9 years 29 days ago
Woody is 100% right. I don’t mind them charging a bigger percentage of the gains, especially if they are doing work I could do myself on the claim that if they do it they will get me a bigger return. Of course if they are doing clerical work for me, like opening accounts, monitoring, balancing, etc, then they need to be paid for their time just like anyone. I think most financial advisors 1) over-sell the complexity of basic money management, and 2) definitely do present custoemrs with a conflict of interest where they get paid by generating transactions rather… Read more »
Duane Gran
Duane Gran
9 years 29 days ago
Woody, The SEC regulates the activities of advisers and they can only charge on a performance basis for accredited investors, which is limited to people with a net worth of 1.5 million and a regular income exceeding 200k per year. The value of an adviser varies and return on investment is one of many factors. Many people rest their head easier on the pillow during tumultuous markets knowing that someone is at the helm who has weathered a bear market or two. Others find that using an adviser increases their privacy or helps them to establish charitable and family goals… Read more »
finance girl
9 years 29 days ago

commission-only “financial advisor” = salesman pushing crap he knows nothing about in order to generate commission to go buy toys.

James
9 years 29 days ago

Ramit,

Amen. Many financial planners are just glorified salesmen.

Best,

James C. Hendrickson

kms
kms
9 years 28 days ago

I used to write a blog about random things I do and one time I wrote about how I invest in mutual funds. And one of the things I listed is that I never, never buy a front- or end-load mutual fund. Well, months later I found out that a financial planner had linked to my post stating that it’s absurd to say that load funds should be avoided. I kept thinking, what financial planner would actually tell a client to buy a load fund when there are plenty of no-load funds that perform better?

Matt
9 years 28 days ago

People can do much better on their own than with a financial planner. Financial planners don’t always have your best interest as their main priority.

Joe
9 years 27 days ago

With a basic knowledge of how the markets works, some research into a couple stocks, and a level head, you could probably outperform these financial planners more often than not. Don’t waste the extra bucks with these guys… do you’re own homework!

Kay
Kay
9 years 26 days ago

I had to comment on your “needs.” I laughed so hard when I read this:
“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.”

It’s too true. I’m glad you get that this isn’t really a “need,” since most young graduates would look at it as an entitlement.

Eric
Eric
9 years 26 days ago
There’s a great part of “The Millionaire Next Door” where it talks about a guy who was always getting calls from financial advisers because he subscribed to a bunch of financial magazines. Whenever they called he told them: “If I’m going to hire a financial adviser, I want someone who is going to get better returns on my money than I’m getting now. Fax me a copy of YOUR OWN tax returns for the past several years. If your money, which you will obviously manage the best you know how, is earning a higher return than mine currently is, I… Read more »
Doug Bromley
9 years 24 days ago

Don’t suppose you’d be able to do any more UK or even euro-centric posts could you? You used to be very national-generic but its becoming more US-centric these days.

I know you’re probably an American but I’m sure there’s a lot you could post about that’d cover everyone?

Keep up the good work.

Jonathan
9 years 21 days ago

If financial advisers want to eat, then they can charge a flat fee. None of this commission crap.

Zach
Zach
9 years 20 days ago
I like most of the comments on here, well thought out. The only problem with fee only financial planners is that they usually require a minimum amount to work with them, which is an amount that most people don’t have. I just hate how everyone is so narrow minded about financial advising, not everyone needs a financial advisor. Most people should do it on their own, because they dont’ have that much money to deal with. The problem is the same problem with obesity in America. People aren’t disciplined to do it themselves. So it’s just like someone hiring a… Read more »
Harried Housewife
9 years 16 days ago

I thought you’d get a kick out of my recent Suze blog:

http://www.mortgageloan.com/blog/harried-housewife/suze-with-a-z/#more-9

Suze’s bottom line message in the financial advisor column you reference is the right one: Take responsibility for your money and don’t depend on others.

Terry
9 years 7 days ago

I like Suze’s message that it’s up to us to take responsibility for our money, too. I’d like to hear your opinion on some of the specific advice she gives, Ramit.

Don Luis
Don Luis
9 years 6 days ago

Somehow, financial advisers appear to be reduced to equity investement decisions on this and many other forums. I wonder, shouldn’t a financial advisor (or planner, for that matter) also take care of such issues as retirement planning, proper tax models, college savings planning, estate planning, etc.?
Of course, while we belong to the below 35 and no kids demographic, we tend to go after the “quick” money that can be made with equities. For that I really don’t need an adviser. But there’s so much more than that to personal finance. Can we trust financial planners for those other issues?

Mrs. Micah
8 years 11 months ago

It seems like paying people to buy stuff for you, based on the number of things they buy (unless they only buy what you want, which is counter-intuitive with financial advisors) is like writing a blank check. Here, take my money! I’m sure many are quite ethical, but I’d certainly feel safer with a flat fee. Or a simple index fund.

anonymous analyst
anonymous analyst
8 years 10 months ago
Not everyone needs an advisor. Those with multiple accounts, special tax situation, etc…yes. The average Joe, not so much. If you truly are deficient in anything investing oriented, but have limited assets, you can do a couple things starting from the most expensive on to the least expensive. 1) Hire and advisor just to do a financial plan. Some will do this for as little as a few hundred dollars. other will charge thousands….not recommended. An advisor will essentially interview you and then develop recommendations which you then can take and act upon yourself. 2) Use someone like Scott Trade.… Read more »
Houston Mortgage Broker
8 years 7 months ago
In this generation, people tend to be looking for the fast cash, and not necessarily looking for long term investing. In this situation there is really no need for an advisor and if you should choose to use an advisor, I would want a flat fee. This is defiantly a down fall in our economy. There are too many people looking for the easy way out and I think the younger generation is not up to speed on how important retirement really is because they think they will get their hands on the fast money. This could really hurt the… Read more »
Jessica
1 year 2 months ago

Having a financial adviser I think is important especially for the “average Joe” because the average joe need to save enough for retirement because who is gonna take care of himself he does not save enough money for himself? so average Joe is the kind of guy that should actually be thinking carefully about every cent he spends!Financial adviser can help you save and use your money wisely …just think long term

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11 months 21 days ago
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