Terrible Things Corrupt Financial Advisors Do

Aug 22, 2022 By Susan Kelly

You can improve the overall quality of your life and save a considerable amount of money by locating a knowledgeable financial consultant who can assist you. People's conceptions of what it means to be "good" might vary significantly from one another. For the sake of this discussion, "good" refers to someone who can assist you and whose demeanour inspires confidence in what they have to say to you. A significant number of advisers are fiduciaries, which means they have a legal obligation to prioritize meeting their clients' monetary requirements above their own. But that doesn't always keep you from getting bad advice that doesn't fit you or is outdated. Here are six things that financial advisors do that might mean they aren't suitable for you or maybe anyone.

They Don't Talk to Your Partner

This can happen with both female and male consultants, and it could be both the wife or the husband who is being ignored. But most stories about this behaviour involve male advisers who rarely talk to the woman in a couple of clients. Some widows had left the adviser who helped them when their husbands were still alive. This is why they left. Tell your spouse that you need to find a new advisor if the one you're working with doesn't pay attention to you. Any good advisor should know they must look for both people's best interests.

They Make You Feel Bad

Not every client is good with money, and not every client cares about their own money. Still, the advisor's job is to explain why they think you should do something or buy something, and they should do it in a way that makes sense to you. If this is not the case, you should be more assertive or find a new advisor. Don't let anyone you may make you feel less smart or talk down to you.

They Care More About Themselves Than You

This may often happen with financial advisors who get paid in whole or part by commissions from selling financial products. Are they telling you to buy things that will make them more money but may not be the best thing for you? You should ask questions, find out how your advisor gets paid, and determine if this causes any conflicts of interest.

They Didn't Respond to Your Phone Call Or Email

A decent financial consultant is maybe hectic, but that's not a good sign if they don't think you're important enough to answer in a reasonable amount of time. Most advisors can tell a story about a client who calls every day, but in my experience, most clients have practical questions and need a quick answer. Why are you still paying someone for financial advice if they don't answer your phone calls?

They Argue That You Do Not Need A Third-Party Guardian

Can you say "Madoff"? If a financial advisor tells you that you shouldn't have your account with Fidelity Investments. SCHW (Charles Schwab Corp), a bank, a brokerage firm, or something similar, you should end the meeting, get up, and run, not walk, away. The most important part of the scam Bernie Madoff pulled on his clients was that he had his custodian. Even if your advisor doesn't send them, a third-party custodian will. Most of the time, you can also use the Internet to get to your account. Ponzi schemes and fraud work best when clients can't access their account information quickly.

They Never Say What They Think

Both the client and the advisor need to be honest and open with each other for the relationship to be healthy. Clients might say they want to do something specific with their money or invest in a particular stock or mutual fund. A good advisor will tell the client whether they agree or disagree with the idea, and if they disagree, they will explain why. If you don't do this, you're hurting the client badly. The client's money is theirs, and they can do whatever they want. An excellent financial advisor won't just tell a client what they want to hear to keep getting fees or commissions from them.


Not all financial advisors will show you the six things you should never do. Instead, these are probably the six worst things a consultant can do when working with a client. If your financial advisor does any of these things all the time, it could mean you need to find a new one.

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