Aside from putting your first-born child on the bus for their first day of public school, there’s nothing more nerve-wracking than handing your entire financial future over to an investment professional who claims you’re in good hands. Relinquishing control and trusting another to keep your best interests in mind is a scary thing — especially when it’s your financial interests at stake.
The Certified Financial Planner Board of Standards found only 12% of consumers feel advisers put the clients’ interests first, while 60% feel they put their companies’ interests first. At the same time, however, a significant amount (41%) feel the need for advisers has become more important over the last five years. This is not entirely reassuring, considering one bad move could unravel any plans you ever had for retiring to Maui and surfing with the locals.
People lie. It’s a fact. But when a financial adviser stretches the truth, the repercussions are detrimental. In hopes to prevent this from ever happening to you, we’ve created a list of the 15 biggest lies your financial adviser might tell you.
1. I can beat the market
Confidence is key in the financial industry. You want an adviser who is comfortable making the big decisions with enough reserve to withstand big-risk temptations on behalf of the client. But any financial adviser who is banking on their ability to beat the stock market and provide exponential returns is already going rouge with your cash. Unless they also have hidden psychic powers, they will almost never truly deliver on that promise — especially when the primary goal of financial planning is creating a means to enjoy a lifestyle you want. If your planner only focuses on beating the market, expect irresponsible investments to haunt you for years to come.
Next: How to know if your adviser cares about your interests