What many people don’t understand is that financial advisors are sales people. Let me state very clearly that there is nothing wrong with that. The ability to sell, and specifically the ability to sell an idea, as good financial advisors do is of the highest level of human interaction. And I am not being hyperbolic.
Many people would be poorer had they not listened to their persuasive brokers.
Not only that, let me be very clear when I say that a broker’s interests and that of their client are usually the same. A good financial advisor will make sure this is the case.
I am of the belief however that for most people, brokers, or “financial advisors” don’t make sense.
Fire your broker before he/she fires you. One of the terms I always hated when I was in the brokerage business was the idea that brokers “fired” some clients. Some clients didn’t make money for the broker and so were “fired.” How would you like to fork over your cash to somebody who thinks they can “fire” you? Well millions of you folks do.
Always do business with someone who respects you and won’t toss you aside. Otherwise you’re just a sucker.
Really the best solution is to open a discount brokerage account. You can buy and sell without the large costs of doing so that you will incur with a full service broker.
If you are not making above market returns, and you feel that your ideas are at least as good as your brokers, do your own thing. Do business with a discount broker. You are likely to do at least as well return wise with much lower commissions.