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Financial Advisors Are Scam Artist

July 9, 2007

I have a whole slew or problems with the Insurance Industry as a whole, but for now I want to stick ot one thing that has been bothering me for some time. Financial Advisors rip you off every chance they get. In a previous article Ameriprise: Recruiter Secrets I discussed how my past experience turned me on to the world of Financial Advising, or as I like to call it “modern day car salesmen.”

Finally my views are ligitimized and if you want to read an in depth article check out the NY Times: Elderly Exploited by Financial Advisors . With the baby boomers about to retire everyone is jumping to help them into their transition to retirement. I do not know about you but I view my retirement as a peaceful time with few stresses as I travel and enjoy my remaining time on earth with friends and family. However, with this new demographic comes a lot of money and so all the slime come out of the craqks to try and exploit the elderly.

Of course there are legitimate Financial Advisors but they are very rare. You no longer can trust Certificates as they are fairly easy to obtain. As long as you can juggle a few fractions and percentages you will eventually pass all the licences you need to start selling financial services. And then it’s like shooting fish in a barrel, you buy a nice suit, throw out impressive terms, and people will throw money at you as long as you promise them security in their old age.

The problem is incentives. The insurance industry is not sufficiently self regulating. As long as they hand out certificates as a business they continue to grow and profit. They really are nothing but middle men that claim to help you but individual financial advisors profit from moves that most likely are not beneficial for you.

There is a site called Motley Fool that had helped me open my eyes “somewhat” to how you are better off investing on your own then listening to anyone else. There is a also a site that doesn’t have any incentive to try to cheat people out of money called Flip Side Invest which hopefully will continue in its path to helping people more knowledgable in their investing and saving practices.

If you want to learn how to trade stocks the best thing to do is join an online stock game .

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2 comments

  1. I totally agree. I think it is probably one of the biggest scams ever. I have always thought that. I had never even heard the term “financial advisor” as a career path when I started college in 1994. Basicallly, it sounds to me like a bunch of people with mediocre business math and statistics skills at best telling other people how to invest their money. What I think is a joke is a guy in his 20-30s telling an elderly person who is retired how to invest their money. Sounds to me like the retired person needs to be the one giving advice to the guy in the gray suit. When will people ever learn?


  2. Greetings…My Father passed and my uncle , a “financial advisor” was the executor of his will . I mistakenly let him invest my share , now he is behaving obscurely and never has a straight answer. Please any advice on hoe to proceed will be super appreciated.



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