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Lessons From 2008: 10 Reasons Not To Use Financial Advisors

January 22, 2009 at 3:40 pm
by Timothy Sykes

Watch these 7 free video lessons on how I became a millionaire

1. 2008

2. They’re just spewing marketed investment at you, pretending/not knowing their true risk/reward…example: Auction Rate Securities

3. You can’t sue em unless they really blatantly do something wrong, even if they do, they’re slimy mothersuckers—they’re friggin professional middlemen!–good luck getting any/much $

4. With the internet evolving the way it is, you can find all the information they’re gonna tell you yourselves.

5. Front End Loads on mutual funds are complete crap! Paying 1,2,4,5, 6% upfront to get into anything means you’re getting ripped off….shame on you joke of an industry!

6. Considering all the paperwork and accounting mess they have to deal with on a daily basis, they hate their jobs, they’re not gonna work that hard for you

7. 2008!!!!

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  • pctrades

    So true. They MUST hate their jobs. I would die if I had to fill out all that crap everyday.

  • pctrades

    So true. They MUST hate their jobs. I would die if I had to fill out all that crap everyday.

  • pctrades

    BTW, where are the other 3?

  • pctrades

    BTW, where are the other 3?

  • bobbymapp

    8. buy my dvds
    9. buy my dvds
    10. buy my dvds

    seriously, i highly recommend them

  • bobbymapp

    8. buy my dvds
    9. buy my dvds
    10. buy my dvds

    seriously, i highly recommend them

  • mikeyc

    1 reason to:

    Berrnie Maddoff.

    why is it all the big firms did not have clients with this scum bag?

    Is it possible the Due Dilligence departments at MS, MER, C etc, etc, actually did their jobs?

    any madoff investors wish they paid a 2% up front end fee and invested in some American Funds suggested by a financial advisor?

    sorry, timmy. if anything else, 2008 is the reason you need an advisor. your point would hold more watter in years like 1997, 1998, 2003, 2004….

  • mikeyc

    1 reason to:

    Berrnie Maddoff.

    why is it all the big firms did not have clients with this scum bag?

    Is it possible the Due Dilligence departments at MS, MER, C etc, etc, actually did their jobs?

    any madoff investors wish they paid a 2% up front end fee and invested in some American Funds suggested by a financial advisor?

    sorry, timmy. if anything else, 2008 is the reason you need an advisor. your point would hold more watter in years like 1997, 1998, 2003, 2004….

  • bobbymapp

    @ T

    Hey, I love Tim, man! Just messing around, cuz I didn’t see the usual link to the dvd page.

    I’ve followed Tim for almost a year now, I’m not even kidding when I say I highly recommend the dvds (I bought the first pennystocking dvd) I’ve made some money using his methods.
    btw, I wish I was <18 again, knowing what I know now.

  • bobbymapp

    @ T

    Hey, I love Tim, man! Just messing around, cuz I didn’t see the usual link to the dvd page.

    I’ve followed Tim for almost a year now, I’m not even kidding when I say I highly recommend the dvds (I bought the first pennystocking dvd) I’ve made some money using his methods.
    btw, I wish I was <18 again, knowing what I know now.

  • Series 7 Youtubers

    They are the best hindsight traders ever, and when the market goes down 90% they say “we are in for the long term”. If you think about it, they are merely idiots that cold call and have zero clue about anything except commissions. Youtube gurus are just as bad, marketers that sprew crap and are never wrong or accountable. you do a web page to make money differently than trading. i lose respect for that. does soros have a blog he relies on? come on.

    Advisors simply want assets under management and morons that fall for a sales pitch. youtubers sell just as much, but seem more desperate to me. they all suck.

    i give tim 1000000x more credit than most, but i still want him to get an account up of 500,000 and make real money.

  • Series 7 Youtubers

    They are the best hindsight traders ever, and when the market goes down 90% they say “we are in for the long term”. If you think about it, they are merely idiots that cold call and have zero clue about anything except commissions. Youtube gurus are just as bad, marketers that sprew crap and are never wrong or accountable. you do a web page to make money differently than trading. i lose respect for that. does soros have a blog he relies on? come on.

    Advisors simply want assets under management and morons that fall for a sales pitch. youtubers sell just as much, but seem more desperate to me. they all suck.

    i give tim 1000000x more credit than most, but i still want him to get an account up of 500,000 and make real money.

  • YoungGunz

    Well sticking my 401k into a 2050 target date fund i’m about -35%…Wish this all happened right when I started my 401k I would be getting huge discounts…I am only 2 1/2 years into it when the market tanked so I should be looking really good if/when things get turned around now that I am getting everything at a discount.

    If anything fee based, not % based, financial advisers would have just allocated funds pretty close to what the target based funds already do.

  • YoungGunz

    Well sticking my 401k into a 2050 target date fund i’m about -35%…Wish this all happened right when I started my 401k I would be getting huge discounts…I am only 2 1/2 years into it when the market tanked so I should be looking really good if/when things get turned around now that I am getting everything at a discount.

    If anything fee based, not % based, financial advisers would have just allocated funds pretty close to what the target based funds already do.

  • LBJ
  • LBJ
  • http://www.yousuckattrading.com Big Willie

    Hey Tim, have you heard the news? Your boys at Digg are laying off staff — ain’t that some s$%t!!!

  • http://www.yousuckattrading.com Big Willie

    Hey Tim, have you heard the news? Your boys at Digg are laying off staff — ain’t that some s$%t!!!

  • matt

    Tim….Trader Monthly is not sending out nov./dec. magazine issues…I think they they are in the red….MANNNNNNNNNNN

  • matt

    Tim….Trader Monthly is not sending out nov./dec. magazine issues…I think they they are in the red….MANNNNNNNNNNN

  • http://www.thedisciplinedinvestor.com Andrew Horowitz

    TIM!

    You forgot to tell them about the good ones. You know a few ( hint hint)

    If you agree, let em know where to find me. Also, still #1 on MSN Strategy Lab – up 13%+ since August and I can tell you clients are happy too…

    Keep up the good work!

    Andrew

  • http://www.thedisciplinedinvestor.com Andrew Horowitz

    TIM!

    You forgot to tell them about the good ones. You know a few ( hint hint)

    If you agree, let em know where to find me. Also, still #1 on MSN Strategy Lab – up 13%+ since August and I can tell you clients are happy too…

    Keep up the good work!

    Andrew

  • jessed

    Horowitz is the man! It was through Andrew’s podcast that I found Tim Sykes. There are a few independents and RIA’s like Andrew Horowitz, unlike the big wirehouses and proprietary shops.

  • jessed

    Horowitz is the man! It was through Andrew’s podcast that I found Tim Sykes. There are a few independents and RIA’s like Andrew Horowitz, unlike the big wirehouses and proprietary shops.

  • http://shanahanwealthservices.com Derek

    I’m glad someone stuck up for those of us who aren’t under the guise of the wirehouses, and aren’t merely plug and play advisors. Those of you who feel like you intelligently make investment decisions, and have a strong financial plan or strategy (be it long or short term) might take a step back and realize you’d probably add a lot of value to the other people in your life who really can’t grasp this stuff the way you can. I found a lot of intelligent people in Tim’s forums, so I mean that statement.

    There are those of us who run small, independent practices which rely on our reputations and ability to make sound decisions for the people who don’t have the time or know-how, and we make sure that the rewards outweigh our fees.

    I think the list is short, without question, but there are financial advisors out there that justify the profession.

  • http://shanahanwealthservices.com Derek

    I’m glad someone stuck up for those of us who aren’t under the guise of the wirehouses, and aren’t merely plug and play advisors. Those of you who feel like you intelligently make investment decisions, and have a strong financial plan or strategy (be it long or short term) might take a step back and realize you’d probably add a lot of value to the other people in your life who really can’t grasp this stuff the way you can. I found a lot of intelligent people in Tim’s forums, so I mean that statement.

    There are those of us who run small, independent practices which rely on our reputations and ability to make sound decisions for the people who don’t have the time or know-how, and we make sure that the rewards outweigh our fees.

    I think the list is short, without question, but there are financial advisors out there that justify the profession.

  • Lauren

    In my experience, not all financial advisors demonstrate the behaviors you mentioned. This is a person to whom you are trusting your money, and you should select someone you trust. You should look at what they offer very carefully — if you’re aware that they offer front-load mutual funds, then maybe you shouldn’t use that particular financial advisor.

    The economy was bad in 2008 – for everyone, not just people who use financial advisors. Any good advisor should make sure of the following:
    1. that you’re aware that their suggestions are just that and that they (just like other stocks, mutual funds and most other investment opportunities) are not guaranteed.
    2. that you are comfortable with your risk. I think many people were comfortable with a high risk investment when the $$ are going up — but not with the same amount decreasing. As an investor, you have to be true to yourself on how much you’re willing to lose if the investment goes down.
    3. Making an assessment on whether someone likes their job or not is not something that anyone else can do. Maybe if you don’t like paperwork you shouldn’t be a financial advisor, but most of us make some sort of opportunity cost decisions with our jobs. Similarly, what other services might you cut out of your life if you don’t use people who don’t like their jobs?

    (e.g. & stereotyping: would you still be able to go get fast food? would you use the bathroom at stores if the janitorial staff don’t like their job?)

  • Lauren

    In my experience, not all financial advisors demonstrate the behaviors you mentioned. This is a person to whom you are trusting your money, and you should select someone you trust. You should look at what they offer very carefully — if you’re aware that they offer front-load mutual funds, then maybe you shouldn’t use that particular financial advisor.

    The economy was bad in 2008 – for everyone, not just people who use financial advisors. Any good advisor should make sure of the following:
    1. that you’re aware that their suggestions are just that and that they (just like other stocks, mutual funds and most other investment opportunities) are not guaranteed.
    2. that you are comfortable with your risk. I think many people were comfortable with a high risk investment when the $$ are going up — but not with the same amount decreasing. As an investor, you have to be true to yourself on how much you’re willing to lose if the investment goes down.
    3. Making an assessment on whether someone likes their job or not is not something that anyone else can do. Maybe if you don’t like paperwork you shouldn’t be a financial advisor, but most of us make some sort of opportunity cost decisions with our jobs. Similarly, what other services might you cut out of your life if you don’t use people who don’t like their jobs?

    (e.g. & stereotyping: would you still be able to go get fast food? would you use the bathroom at stores if the janitorial staff don’t like their job?)