Human Financial Advisor Horror Stories about Portfolio Management

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Is your financial advisor stealing from you?

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What are some signs that your financial advisor is stealing from you?

  • They don’t provide timely statements of activity on your account.
  • They give you excuses if you want to move money around.
  • They can’t explain withdrawals from your account.
  • They can’t provide third party account statements to support internally reported information.
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ISSUES:
Deceptive Practices
Portfolio Management
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What are some signs that your financial advisor is stealing from you?

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He is a new friend

He is a long-lost relative

He approached you in church with a Bible in hand

He offers you a guaranteed high steady return

He is addicted to something that is expensive

The name of his company includes the name of any of the Founding Fathers, any prestigious US or British University or sounds like it is affiliated with Veterans or the US government

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ISSUES:
Conflicts of Interest
Portfolio Management
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What does an advisor do?

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Years ago when I was getting started i spoke to a Schwab advisor. After speaking with him for an hour I still couldn’t figure out what a financial advisor does.

Do you pick stocks? “No, we allocate it to a few different index funds” which funds “funds you feel comfortable that suits your risk level” so I pick the funds?? “Yes” on so then what do you do??! “I advise you, and help you with your unique needs” my unique needs??? My need is for my money to grow as fast as possible.

Do some people have the unique need to lose money?? “….”

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ISSUES:
Poor Communication
Portfolio Management
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How My Wife’s Financial Planner Mismanaged Her Investments for Years

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Sounds like my wife’s ex financial planner. I warned her after meeting him once before she gave him her money but she trusted him because her dad uses him (btw her dad has less than 1% of his net worth with this guy). Took me five years of doing yearly reviews with her to finally pull the money and put in index funds.

They put her in an annuity, impossible to liquidate private reits and my favorite was summer of 2020 after qe was in full force they put a third of her money in bonds. The underperformance was insane. Had it just been 10% worse than an index fund I’d be so happy.

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ISSUES:
Incorrect Advice
Portfolio Management
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The Impact of Bad Financial Advice

Getting poor financial advice can have serious consequences, from financial loss to emotional distress. More and more investors are choosing to take matters into their own hands – and we're here to help.

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