Beware of Advisors Selling Solutions Before Understanding Your Full Situation

Be cautious of anyone who sells you a solution before they do the work to determine whether it is what you need.

Advisors are set up to sell you something before they know you need it. They only make money if you have them manage your money, buy their insurance, or transfer to their firm. Some Financial Advisors will only give recommendations or advice if you invest in one of their managed portfolios. That’s backwards! Could you imagine a doctor giving you pills and recommending procedures before they go through a thorough diagnostic? Financial Planning must come first for the recommendations to fit into your financial situation. They can’t know what you need before they do the work to know you, and that takes time, questions, and analysis.

And those who offer "free" financial planning—can you guess what their "plan" will find 100% of the time? You must have them manage your portfolio, buy their insurance, and transfer to their firm. It’s the only way they can justify the time they took doing a plan with you. Thats why when you visit a doctor, you pay an office visit fee. Imagine if a doctor only got paid if they ​ diagnosed you with a problem and sold you a treatment?

The truth is, if you pay for a financial plan and analysis, you will get better recommendations. That is because the advisor is being compensated for their time, which removes the need for the advisor to sell you an unnecessary product or solution so they can explain to their manager why they spent that time with you. Ultimately, you may not need to make expensive changes; therefore, paying for the planning and analysis may be cheaper, too!

Read this blog to find out more!