Thursday, March 25, 2010

Is Your Financial Advisor a Yes Man?

Recently, I posted an article from CNN Money to Twitter (@investsafely) regarding investment advisors, entitled "Do you have a yes-man problem when it comes to financial advice?"

To summarize, the article covered a study on investment advisor bias. Actors went to advisors with fake investment portfolios. Long story short, the advice was largely based on the current holdings of the "client".

In other words, instead of looking at each person’s goals and objectives, advisors looked at the current investments and recommended more of the same.

One follower asked the question: "So what is the solution?"

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