Mutual Funds

Whose Interests Are Truly Being Served?

By Kanwal Sarai
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mutual fund advisorHow do you tell financial advisors and product pushers apart? Is your financial advisor looking out for your best interest or their own? A recent article from Morningstar identifies 4 things to consider before working with a financial advisor. I’d like to add one more to the list:

Is the advisor living paycheck to paycheck?

In other words if the financial advisor isn’t wealthy himself, how can he or she help you to achieve financial success? Ask any potential advisor how long they have been following their own advice, and determine if in fact this person is wealthy (this is easier said than done, since advisors are not obligated to disclose their personal wealth).

Question for my blog readers: Any ideas on how to determine if your advisor is financially well off?

Thanks to Canadian Capitalist for first mentioning this Morningstar article on his blog!

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Showing 4 comments
  • Invest It Wisely

    I am always skeptical of any financial advisor having my best interests at heart rather than the bank. There is simply too much money involved for the bank to not want to slip their fingers on some more. Holding these guys a bit more accountable for their advice might help things…

  • Kanwal Sarai

    @Invest It Wisely Thanks for the comment Kevin! In my experience I've found it more profitable to buy shares in the bank/mutual fund company than to buy their mutual funds.

  • My Own Advisor

    I'm with Kevin, always a skeptic when it comes to FAs. Bad eh? 🙂

    BTW – I finally subscribed to your newsletter 🙂

    Did you know I moved my site?

    Please re-subscribe and stay in touch!

  • Kanwal Sarai

    Congrats on the move to your new site Mark!

    I just re-subscribed!

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