Why Do Financial Advisors Do Crap Like This?

A couple, at or around retirement age, whose finances have been managed by various “professionals” in the financial services industry, would like some help making sense of their investment portfolio.

Why do financial advisors compile these steaming piles of crappy funds and call the heap an investment portfolio? I’m not entirely sure, but I’ve got some ideas.

Why Do Some Financial Advisors Do This Crap?

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Do not confuse complexity with effectiveness. There may be a relationship there, but it’s probably inverse.

Obfuscation

Most clients with five-figure and low-to-mid-six-figure portfolios, which is the norm, are not going to directly pay thousands of dollars to someone to manage their investments.

It Pays the Bills

You should also understand that much of what they know came from a corporate playbook, not from reading dozens of books on sound investing and personal finance.

They Don’t Know What They Don’t Know

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