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I work with financial advisors, and trust me, many people do need financial advisors' advice! We have quite a few clients who would have blown themselves up with day trading and other nightmare scenarios. In addition, the F.A.s I work with are very ethical, and they really do have their clients' best interests at heart. When one of our smaller clients called wanting to buy into a "hot stock", she was told it wasn't investing, that it was gambling.
As far as being paid commission, would you prefer to pay hourly for the advice, like you pay an attorney? Some of our clients are on managed programs, which means they pay a flat fee every quarter, and that fee is based on the value of their account averaged over the previous quarter.
I'd prefer that they tell Stock Market ia a Pyramid scheme, i.e. da plain.simple truth.
Many of my friends and neighbors insist they are dealing with "financial advisors" when speaking of their stock brokers. I then ask, how can someone be your financial advisor if they make a commission on what they sell you?
They don't get it. I may as well be talking to the deaf.
I work in financial services and talk to investors on a daily basis.
Most people NEED financial advisors. Most people are complete idiots. You would not believe some of the things people want to do and think they can do.
We get asked all the time to issue a "refund" for money invested a few years back for the full amount invested when they lost. They do this because they didnt use an advisor and didnt realize they could actually lose money when investing.
Just because someone is earning a commission doesnt mean they arent honest and dont have their clients best interest at heart. Just like every industry, their are crooks out there. But for every crook, there are many good advisors out there. I know several.
Germans also aren't hung up on the idea that homeownership is a God-given right or the government's job to encourage. They're a nation of renters, by and large. Plenty of economic mediocrity in their system. Although I'm a laissez faire capitalist at heart, a quasi-socialist system that doesn't have pretensions otherwise is preferable to the dillusions we have now.
Being that Germany is one of the more crowded, congested nations on Earth, its not wonder that home ownership is not part of the standard lexicon.
I work in financial services and talk to investors on a daily basis.
Most people NEED financial advisors. Most people are complete idiots. You would not believe some of the things people want to do and think they can do.
We get asked all the time to issue a "refund" for money invested a few years back for the full amount invested when they lost. They do this because they didnt use an advisor and didnt realize they could actually lose money when investing.
Just because someone is earning a commission doesnt mean they arent honest and dont have their clients best interest at heart. Just like every industry, their are crooks out there. But for every crook, there are many good advisors out there. I know several.
most financial advisors think that people are complete idiots, but who is getting bailed out? the only person that will put your best interest first is you!
I strongly disagree. If a person is too stupid to understand investing, they should not be playing the market. In an inflation-free monetary system they can simply sock away around 10% of yearly income and retire with the same standard of living. Let the more educated take their money and invest in factories, or high-tech. People who are idiots do not deserve to be earning income off of doing nothing. Capatalism is the best and most fair system out there, as long as centralized planning or cartels can be prevented. Government control assures that a select few get a free ride while everyone else has to struggle. In our current Government regulated economy success is both skill and connections. With more freedom there will be better distribution of wealth. There should be many ways to invest, not just NYSE NASDAQ and NYMEX but direct in v estment in companies you are personally familiar with. Unless you have the inside truthful information, you should not risk YOUR capital. I see brokers as useless middlemen. Perhaps a better education of people who want to invest would be a new industry.
most financial advisors think that people are complete idiots, but who is getting bailed out? the only person that will put your best interest first is you!
First of, I am not a financial advisor.
Second, If you heard the conversations that I have on a daily basis with average people you would realize how stupid people really are.
Third, banks and insurance companies are being bailed out. Financial Service companies are a total different animal. Some of them are probably having problems but only a very small percentage.
The company I worked for is doing EXTREMELY well. We are setting sales records and have doubled our net assets over the last three years.
Fourth, you can find someone that you trust to work as an advisor for you that will truly have your best interest at heart. I see instances everyday in which an advisor is taking less commission so that his client will be in a better shape. In fact, I had an instance this morning where I actually went to management to get an exception approved that lead to the advisor getting NO COMMISSION so that the shareholder would be in better shape.
I strongly disagree. If a person is too stupid to understand investing, they should not be playing the market. In an inflation-free monetary system they can simply sock away around 10% of yearly income and retire with the same standard of living. Let the more educated take their money and invest in factories, or high-tech. People who are idiots do not deserve to be earning income off of doing nothing. Capatalism is the best and most fair system out there, as long as centralized planning or cartels can be prevented. Government control assures that a select few get a free ride while everyone else has to struggle. In our current Government regulated economy success is both skill and connections. With more freedom there will be better distribution of wealth. There should be many ways to invest, not just NYSE NASDAQ and NYMEX but direct in v estment in companies you are personally familiar with. Unless you have the inside truthful information, you should not risk YOUR capital. I see brokers as useless middlemen. Perhaps a better education of people who want to invest would be a new industry.
Just because you are investing doesnt mean you are "playing the market". There are lots of long-term investments that are intended for someone to put their money and wait for several years before touching with the goal that they will experience long-term growth. That isnt playing the market.
However, I do agree that education of investors would be a great industry. But, in the age of information where all the info you want is at your fingertips, there is no excuse for being uninformed. A couple of hours reading a book or researching online will give you enough info to get started investing and alteast not be a total idiot. But, most people dont even do that.
Why do we need government intervention in a free market society? Why does the government have to social engineer our financial industry? Let the market self correct.
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