I was do a bit of additional reading on the article I posted the other day regarding the seemingly robust secondary market for brokers who had been involved in some form of malfeasance when I came across this excellent analysis of the article by Michael Kitcess. The entire piece is well worth reading. The analysis includes this rather disturbing table that highlights the fact that at the top of table is a firm where 1 in 5 of the staff have been done for dishonesty.
The take home point of this is that there is an enormous gulf in what the industry believes is honest practice and what the rest of the world sees as doing the right thing. Financial institutions are more often than not in direct conflict with their customers and see their customers as little more than sheep to be fleeced ala Commonwealth Bank. Whilst, the data used is drawn from the American experience there is no reason not to assume that the same ratio of misconduct is not occurring domestically.
When dealing with any form of financial advisor it is best to remember that this industry had to be dragged kicking and screaming towards the notion of acting in the best interest of the client.
Financiers of all kinds are, by and large, unqualified bottom feeding lying scum.
With apologies to the very tasty Lobster.
When I asked my financial advisor what his net worth was.( After all financing costs removed) and what his annual income was, he was somewhat offended. So I suggested that as he knows my financial state of affairs, I don’t see the problem.
He stated that he was going to manage mine but I was not going to be managing his. I then stated that unless his net worth and annual income was substantially more than mine then I would be a complete idiot to have him manage my finances. If he can do better then show me. I have friends who are wealthier than I and the advisor. And there advice is serving me well.
As they say, tread your own path.(My addition, and do it carefully).