Tag Archives | financial planner options education

Financial Planners. How do they survive?

Steady readers know that I have a problem with professional financial advisors.  I am so disappointed at how they appear to do well by their clients during bull markets (when their services are not needed) and do poorly during bear markets (when their help is desperately needed). 

I know these people cannot produce miracles, but in my opinion, the advice they peddle is essentially worthless.  I believe investors would do better to save the fees and spend time learning to become a do-it-yourself investor who adopts conservative option strategies.  And if that idea is unsuitable, owning a mix of index funds and bonds would probably produce results that are as good, or better – with no fees.

I found some interesting blogs on this topic yesterday:

Harriett Johnson Brackey, financial columnist for the Sun Sentinel, asks

"Why is it so hard to find a financial adviser (and I didn't even say a good one)?"

There has to be a reason, but I’m not sure what it is.

Why don’t advisers try to connect with the public? How do they expect the public to find them?"


Good questions.  Perhaps the answer is that they are too embarrassed by their inability to help clients.  How about it planners:  Are you allowed to advertise?  Why don't you?  

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Then I found this piece on how well financial planners have done when earning money for themselves.  Of course, these are the fees they collect from clients, and not the result of their investing prowess:

Eric Shurenberg had this comment in April, 2009.  It's a video worth watching.

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