{"id":8240,"date":"2017-02-06T08:52:20","date_gmt":"2017-02-06T16:52:20","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=8240"},"modified":"2024-09-05T03:07:30","modified_gmt":"2024-09-05T07:07:30","slug":"10-things-your-financial-advisor-wont-tell-you","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/","title":{"rendered":"10 Things Your Financial Advisor Won\u2019t Tell You"},"content":{"rendered":"\n<p>If you\u2019ve been keeping up with the news, you may have come across something about financial advisors. In case you missed it, here are the cliff notes: the Department of Labor (DoL) says <a href=\"https:\/\/www.paladinregistry.com\/about-advisors\/fidicuary-financial-advisor\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span style=\"color: #0000ff;\">financial advisors must be a fiduciary<\/span><\/strong><\/a> in some circumstances.<\/p>\n\n\n\n<p>A <a href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/certified-financial-fiduciary\/\">fiduciary Financial Advisor<\/a> is someone who must act in their client\u2019s best interest. The DoL ruling may surprise some consumers who had assumed that their advisor <em>was<\/em> working in their best interest.<\/p>\n\n\n\n<p>Unfortunately, the DoL ruling isn\u2019t a panacea for your advisor keeping secrets from you. Because in addition to not telling you that they\u2019re not working in your best interest, <strong>there are other things that your financial advisor won\u2019t tell you<\/strong>. I\u2019ve put together a list of <em>some<\/em> of the things your advisor may not be telling you \u2013 and what you can do about it!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d638b023556\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d638b023556\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#Top_10_Things_Your_Financial_Advisor_Wont_Tell_You\" title=\"Top 10 Things Your Financial Advisor Won\u2019t Tell You\">Top 10 Things Your Financial Advisor Won\u2019t Tell You<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#1_I_Dont_Have_Your_Best_Interest_in_Mind\" title=\"#1 I Don\u2019t Have Your Best Interest in Mind\">#1 I Don\u2019t Have Your Best Interest in Mind<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#2_My_Title_Doesnt_Mean_Anything\" title=\"#2 My Title Doesn\u2019t Mean Anything\">#2 My Title Doesn\u2019t Mean Anything<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#3_I_Get_a_Cut_When_You_Buy_a_Financial_Product\" title=\"#3 I Get a Cut When You Buy a Financial Product\">#3 I Get a Cut When You Buy a Financial Product<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#4_Fee-BASED_is_a_Meaningless_Term\" title=\"#4 Fee-BASED is a Meaningless Term\">#4 Fee-BASED is a Meaningless Term<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#What_a_Fee-Only_CFP%C2%AE_Fiduciary_Wont_Tell_You\" title=\"What a Fee-Only CFP\u00ae Fiduciary Won\u2019t Tell You\">What a Fee-Only CFP\u00ae Fiduciary Won\u2019t Tell You<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#5_The_4_Rule_is_Dead\" title=\"#5 The 4% Rule is Dead\">#5 The 4% Rule is Dead<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#6_Youre_Not_Going_to_Get_20_Investment_Returns\" title=\"#6 You\u2019re Not Going to Get 20% Investment Returns\">#6 You\u2019re Not Going to Get 20% Investment Returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#7_Pre-Pay_Your_Debt\" title=\"#7 Pre-Pay Your Debt\">#7 Pre-Pay Your Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#8_Diversify_Your_Retirement_Income\" title=\"#8 Diversify Your Retirement Income\">#8 Diversify Your Retirement Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#9_You_Should_Delay_Getting_Social_Security\" title=\"#9 You Should Delay Getting Social Security\">#9 You Should Delay Getting Social Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#10_Annuitize_Your_Pension\" title=\"#10 Annuitize Your Pension\">#10 Annuitize Your Pension<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/10-things-your-financial-advisor-wont-tell-you\/#The_Future_of_Financial_Planning\" title=\"The Future of Financial Planning\">The Future of Financial Planning<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_10_Things_Your_Financial_Advisor_Wont_Tell_You\"><\/span>Top 10 Things Your Financial Advisor Won\u2019t Tell You<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>I Don\u2019t Have Your Best Interest in Mind<\/li>\n\n\n\n<li>My Title Doesn\u2019t Mean Anything<\/li>\n\n\n\n<li>I Get a Cut When You Buy a Financial Product<\/li>\n\n\n\n<li>Fee-BASED is a Meaningless Term<\/li>\n\n\n\n<li>The 4% Rule is Dead<\/li>\n\n\n\n<li>You\u2019re Not Going to Get 20% Investment Returns<\/li>\n\n\n\n<li>Pre-Pay Your Debt<\/li>\n\n\n\n<li>Diversify Your Retirement Income<\/li>\n\n\n\n<li>You Should Delay Getting Social Security<\/li>\n\n\n\n<li>Annuitize Your Pension<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_I_Dont_Have_Your_Best_Interest_in_Mind\"><\/span>#1 I Don\u2019t Have Your Best Interest in Mind<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Are you working with a salesperson masquerading as a financial planner? Unlike a fiduciary, a commissioned salesperson\u2019s number one goal is to sell. It\u2019s not to make sure that you\u2019re getting the best financial advice to help you reach your goals.<\/p>\n\n\n\n<p>The commissioned salesperson is under no obligation to make your life better. Their true incentive is to earn a commission from a sale. The bigger the commission, the bigger the incentive.<\/p>\n\n\n\n<p>What\u2019s the solution? Work with a financial advisor who has pledged themselves as a fiduciary.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_My_Title_Doesnt_Mean_Anything\"><\/span>#2 My Title Doesn\u2019t Mean Anything<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As John Oliver hilariously pointed out on <em>Last Week Tonight<\/em>, the following titles are meaningless:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Financial Analyst<\/li>\n\n\n\n<li>Financial Consultant<\/li>\n\n\n\n<li>Financial Advisor<\/li>\n\n\n\n<li>Financial Planner<\/li>\n\n\n\n<li>Investment Consultant<\/li>\n\n\n\n<li>Wealth Manager<\/li>\n<\/ul>\n\n\n\n<p><em>Anyone<\/em> can call themselves any of the above.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/gvZSpET11ZY?start=208\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n\n\n\n<p>So, what do you do if you\u2019re looking for financial advice? Opt for a CERTFIED FINANCIAL PLANNER<sup>TM<\/sup>. Did you note the capitalization and <sup>TM<\/sup> at the end? That\u2019s because the CFP\u00ae designation means something special. See how I did it again with the little \u201c\u00ae\u201d?<\/p>\n\n\n\n<p><strong><span style=\"color: #0000ff;\">CFP\u00ae professionals must pass an array of requirements to be granted their designation<\/span><\/strong>, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span style=\"color: #0000ff;\">Education<\/span><\/strong><\/li>\n\n\n\n<li><strong><span style=\"color: #0000ff;\">Experience<\/span><\/strong><\/li>\n\n\n\n<li><strong><span style=\"color: #0000ff;\">Examination<\/span><\/strong><\/li>\n\n\n\n<li><strong><span style=\"color: #0000ff;\">Ethics<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_I_Get_a_Cut_When_You_Buy_a_Financial_Product\"><\/span>#3 I Get a Cut When You Buy a Financial Product<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you\u2019re working with a commissioned salesperson, they\u2019re likely trying to sell you something. Why are they doing this? Why is it always,<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cyou need to <span style=\"color: #0000ff;\">buy this life insurance to protect your family<\/span>,\u201d or<\/li>\n\n\n\n<li>\u201cyou need to buy this mutual fund to save for retirement,\u201d or<\/li>\n\n\n\n<li>\u201cyou need to <span style=\"color: #0000ff;\">put money in this 529 to pay for college<\/span>\u201d<\/li>\n<\/ul>\n\n\n\n<p>Does that make sense? How is it possible that every single financial problem has the same answer: buy a financial product?<\/p>\n\n\n\n<p>Commissioned salespeople only make money when you buy something. Therefore, their \u201cfree\u201d advice usually suggests you buy a financial product, like whole life insurance.<\/p>\n\n\n\n<p>The solution to buy <em>shouldn\u2019t<\/em> make sense; not every financial problem requires a purchase. Sometimes it\u2019s the opposite. Readers of the personal finance blogs know well that sometimes the best option is to <em>not<\/em> spend money.<\/p>\n\n\n\n<p>But, even <em>if<\/em> your financial problem was solvable via purchasing a financial product, the bad news is that the financial products offered by a commissioned salesperson are usually the worst financial products to buy.<\/p>\n\n\n\n<p>Why do commissioned salespeople offer such terrible financial products? Because the salesperson\u2019s commission is baked into the cost of the financial product.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"834\" height=\"354\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/cost-of-life-insurance.png\" alt=\"cost of life insurance\" class=\"wp-image-8249\" srcset=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/cost-of-life-insurance.png 834w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/cost-of-life-insurance-300x127.png 300w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/cost-of-life-insurance-768x326.png 768w\" sizes=\"(max-width: 834px) 100vw, 834px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>What\u2019s the solution? Work with a fee-only CFP\u00ae professional! When you work with a fee-only professional, you pay for advice \u2013 and not for an overpriced financial product that you may not need.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"484\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/value-of-fee-only-1024x484.png\" alt=\"value of fee-only financial advisor\" class=\"wp-image-8248\" srcset=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/value-of-fee-only-1024x484.png 1024w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/value-of-fee-only-300x142.png 300w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/value-of-fee-only-768x363.png 768w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/value-of-fee-only.png 1258w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Fee-BASED_is_a_Meaningless_Term\"><\/span>#4 Fee-BASED is a Meaningless Term<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You\u2019ll notice that I just said, \u201cwork with a fee-<strong><em>only<\/em><\/strong> CFP\u00ae professional.\u201d What I didn\u2019t say is work with a fee-<strong><em>based<\/em><\/strong> advisor. What\u2019s the difference? <strong><em>Only<\/em><\/strong> everything.<\/p>\n\n\n\n<p>When you work with a fee-<strong><em>only<\/em><\/strong> advisor, you get someone who can never sell you any financial product. When you work with someone who is fee-<strong><em>based<\/em><\/strong>, they can just as easily sell you something. So, make sure to choose fee-<strong><em>only<\/em><\/strong>. Don\u2019t fall for fee-<strong><em>based<\/em><\/strong><em>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_a_Fee-Only_CFP%C2%AE_Fiduciary_Wont_Tell_You\"><\/span><span style=\"color: #000000;\">What a Fee-Only CFP\u00ae Fiduciary Won\u2019t Tell You<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So far, I\u2019ve advocated for patronizing a fee-only CFP\u00ae professional. But, even a fee-only CFP\u00ae professional has a conflict of interest if they\u2019re offering an assets under management (AUM) investing service.<\/p>\n\n\n\n<p>If you\u2019re not familiar with AUM billing, think of an online automated investment service (AKA a <a href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/what-is-a-robo-advisor-and-should-you-use-one\/\">robo-advisor<\/a>). You put in $5,000 \u2013 and the robo-advisor takes their 0.25% of your money. If your portfolio grows in value, the robo-advisor makes even more money. If your portfolio declines in value, they make less money. This puts you and the AUM advisor on the same page: you both want the portfolio to get bigger \u2013 not smaller. When the portfolio gets bigger, you both make more money.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"752\" height=\"629\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/AUM.png\" alt=\"AUM advisor\" class=\"wp-image-8247\" srcset=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/AUM.png 752w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/AUM-300x251.png 300w\" sizes=\"(max-width: 752px) 100vw, 752px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>The percent of assets is a good start in aligning client and advisor interest. But, it\u2019s not perfect. To prove it, here are some things that even your fee-only advisor won\u2019t tell you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_The_4_Rule_is_Dead\"><\/span>#5 The 4% Rule is Dead<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>I love the early retirement movement! It is truly inspiring. I too long for the chance to live on a large piece of land (where I can adopt all the rescue foster dogs).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2017\/02\/rescue-dog.jpg\" alt=\"rescue dog\" class=\"wp-image-8246\" style=\"width:300px;height:auto\"\/><figcaption class=\"wp-element-caption\">One rescue dog down \u2013 99 to go!<\/figcaption><\/figure><\/div>\n\n\n<p>But, I cringe when I see <span style=\"color: #0000ff;\">early retirement bloggers talking about the <\/span><a href=\"https:\/\/www.wiseradvisor.com\/blog\/retirement-planning\/you-may-now-need-1-8-million-to-retire\/\"><span style=\"color: #0000ff;\">4%<\/span> rule<\/a>. Why? Because the 4% rule is a thing of the past. If you think your investment portfolio can sustain a 4% withdrawal every year, think again. Here\u2019s why:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>In his study, <span style=\"color: #0000ff;\">William Bengen\u2019s 4% rule<\/span> was applied to a 60-year old retiree. Bengen didn\u2019t do an analysis past 50 years of withdrawals. If you\u2019re planning on retiring at 30 or 40 and living to age 100, you very likely may run out of money using the 4% rule.<\/li>\n\n\n\n<li>Bengen\u2019s research was published in October of 1994. <span style=\"color: #0000ff;\">Newer studies have declared sustainable withdrawals rates can be as low as 1.26%<\/span> net of fees, depending on your allocation.<\/li>\n<\/ol>\n\n\n\n<p>Yet, if you\u2019re an advisor offering investment management services, being honest with clients about investment returns may mean turning off potential customers.<br><style type=\"text\/css\">\r\n  .articles-ad-page {\r\n   border-top: 1px solid #ADADAD;\r\n   border-bottom: 1px solid #ADADAD;\r\n   padding: 15px 0;\r\n   margin-bottom: 10px;\r\n   display: block;\r\n  }\r\n\t.articles-ad-page {padding: 10px 5px; border-top: 1px solid #BEBEBE; border-bottom: 1px solid #BEBEBE; margin-bottom: 20px;\t}\r\n\t.articles-ad-page img {float: left; margin-right: 20px; max-width: 140px; margin-top: 5px; margin-bottom: 5px; border-radius: 0;}\r\n\t.articles-ad-page .txt {line-height: 21px; margin-bottom: 0; font-size: 14px; margin-top: 4px; }\r\n  .articles-ad-page .txt p{font-size: 14px;}\r\n  .articles-ad-page .txt p a{color: #035184 !important; font-weight: bold; text-decoration: none;}\r\n  .spocored-text{color: #cac5c5; font-weight: 500; float: right; font-size: 12px;}\r\n  .wa-text{color: #183a68; font-weight: bold; float: left; font-size: 12px;}\r\n  .articles-ad-page .alignleft{ float:left!important;}\r\n  .txt-head{margin-bottom: 2px; text-align: left; margin-top: -6px;}\r\n  .txt-text{margin-bottom: 14px;}\r\n  @media screen and (max-width:767px) and (min-width:320px){\r\n      .articles-ad-page .txt-head {margin-top: -15px; float: left; width: 50%;}\r\n      .articles-ad-page .txt {width: 100% !important; margin-top: 12px;}    \r\n      .articles-ad-page { display: block;}\r\n    }\r\n  @media screen and (max-width: 360px) and (min-width: 320px){\r\n    .articles-ad-page .txt-head a {\r\n        font-size: 16px!important;\r\n        line-height: 16px!important;\r\n    }\r\n    .articles-ad-page .txt-head{\r\n        margin-right: 14px;\r\n            width: 45%;\r\n    } \r\n    .articles-ad-page img{ margin:0 10px 10px 0px!important;}\r\n  }\r\n<\/style>\r\n\r\n\r\n<p><span class=\"spocored-text\" >SPONSORED<\/span> <span  class=\"wa-text\">WISERADVISOR<\/span><\/p>\r\n<div class=\"clearfix\"><\/div>\r\n<div class=\"Articles-ad-page\"><img decoding=\"async\" class=\"alignleft-new\" style=\"margin-top: 0px;\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2023\/03\/ads-image-1.jpg\" alt=\"ad_article\" width=\"\" height=\"\"><p><\/p>\r\n<div class=\"txt-new\">\r\n<p style=\"margin-bottom: 22px;\"> <a href=\"https:\/\/www.wiseradvisor.com\/match_advisors.asp?kwd=paladin-blog-ad-10-things-your-financial-advisor-wont-tell-you&amp;utm_medium=middle\" style=\"color:#035184;     font-size: 20px;font-weight: 700; text-decoration: none;\" target=\"_blank\" rel=\"noopener noreferrer\">Need a financial advisor? Compare vetted experts matched to your needs. Compare credentials and fees.<\/a><\/p>\r\n<p>Choosing the right financial advisor is daunting, especially when there are thousands of financial advisors near you. We make it easy by matching you to vetted advisors that meet your unique needs. Matched advisors are all registered with FINRA\/SEC.  <a href=\"https:\/\/www.wiseradvisor.com\/match_advisors.asp?kwd=paladin-blog-ad-10-things-your-financial-advisor-wont-tell-you&amp;utm_medium=middle\" target=\"_blank\" style=\"font-weight: 700;    color: #035184;\" rel=\"noopener noreferrer\">Click to compare vetted advisors now.<\/a><\/p>\r\n<\/div>\r\n<div class=\"clearfix\"><\/div>\r\n<\/div>\r\n\r\n\r\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Youre_Not_Going_to_Get_20_Investment_Returns\"><\/span>#6 You\u2019re Not Going to Get 20% Investment Returns<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Marketing a 20% investment return is a good way to get money in the door. But, just like sustaining a 4% withdrawal rate is not possible, neither are outsized investment returns. If you hear about investment returns that seem too good to be true, they probably are.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Pre-Pay_Your_Debt\"><\/span>#7 Pre-Pay Your Debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The advisor charging for a percent of assets wants your investment portfolio to be as big as possible \u2013 so he can get paid as much as possible. This means the advisor may advise you to keep more of your money invested in the stock market \u2013 and under their management.<\/p>\n\n\n\n<p>Sometimes it may make sense to pre-pay your debt. It depends on a myriad of things, like risk tolerance, investment allocation, the term and interest rate of the debt. However, the conflict of interest that stems from an AUM advisor means you\u2019re likely to be encouraged to carry debt so as to keep your AUM portfolio as large as possible.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Diversify_Your_Retirement_Income\"><\/span>#8 Diversify Your Retirement Income<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The stock market is a great way to invest \u2013 but it\u2019s not the only way to make money. There is also rental property. Rental property is a very different type of investment compared to the stock market. It has its own unique challenges. But, just as you diversify your portfolio with different stocks, you should also diversify your retirement income. Consider rental property, part-time employment, hobby income, or a small business venture as a way to supplement your (early) retirement income.<\/p>\n\n\n\n<p>However, the investment advisor charging a percent of assets won\u2019t tell you this. Why? Because putting money into real estate (or anything else) means that money has to come from somewhere \u2013 and if that money comes from the investment portfolio managed by the advisor, that means less money for the AUM advisor.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_You_Should_Delay_Getting_Social_Security\"><\/span>#9 You Should Delay Getting Social Security<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Delaying Social Security means getting a guaranteed 8% investment return on your Social Security payment. You won\u2019t see a guaranteed rate like that anywhere else \u2013 except maybe government bonds of the 1980\u2019s. (But unless you have a time machine, you can\u2019t buy those.) If you\u2019re delaying receiving Social Security, money to fund your living expenses must come from somewhere. And that means it\u2019s coming from your investment portfolio.<\/p>\n\n\n\n<p>An advisor charging a percent of assets under management (AUM) will likely tell you to take Social Security now. And it\u2019s bad advice (because you\u2019d be giving up an 8% guaranteed investment return).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Annuitize_Your_Pension\"><\/span>#10 Annuitize Your Pension<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.wiseradvisor.com\/financial-advisors\/fee-only-financial-advisors\/\">Fee-only CFP<\/a>\u00ae fiduciaries and <span style=\"color: #0000ff;\">celebrity consumer experts alike will tell you to avoid buying an annuity<\/span>. But I\u2019m talking about a different kind of annuity here: annuitizing your pension.<\/p>\n\n\n\n<p>You\u2019re given an option on how to claim that. There are normally at least a couple options:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Annuitize your pension \u2013 entitling you to monthly income for life, or<\/li>\n\n\n\n<li>Get a one-time lump-sum distribution<\/li>\n<\/ol>\n\n\n\n<p>Sometimes it makes sense to choose one option over the other. There are lots of considerations, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your life expectancy<\/li>\n\n\n\n<li>The rate of investment return available with other investments (opportunity cost)<\/li>\n\n\n\n<li>Your needs for liquidity (to be able to get at all the money instead of just the monthly payment)<\/li>\n\n\n\n<li>The financial strength of the pension \/ company providing the pension<\/li>\n<\/ul>\n\n\n\n<p>The choice to annuitize a pension is a very personal decision. There is no one-size-fits-all answer. But, the financial advisor almost has the same answer: take the lump-sum distribution. Why does the financial advisor want you to take the money and run? Because having a client get a big chunk of cash means the advisor has a chance to get a piece of cash from:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Getting a commission on selling life insurance<\/li>\n\n\n\n<li>Getting a commission from selling a mutual fund<\/li>\n\n\n\n<li>Getting a bigger assets under management fee for investment management<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Future_of_Financial_Planning\"><\/span><span style=\"color: #000000;\">The Future of Financial Planning<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Department of Labor rulings are a good start \u2013 but there are still many conflicts of interest in the industry.<\/p>\n\n\n\n<p>How do you get the best possible advice from a financial advisor? <a href=\"https:\/\/www.paladinregistry.com\/landing\/find-financial-advisors?cta=10-things-your-financial-advisor-wont-tell-you\">Find a financial advisor<\/a> who<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>pledged themselves as a fiduciary<\/li>\n\n\n\n<li>is a CFP\u00ae professional<\/li>\n\n\n\n<li>is fee-only<\/li>\n<\/ul>\n\n\n\n<p>Lastly, skip the AUM billing model. Instead, choose a fee-only CFP\u00ae professional pledged as a fiduciary who charges via:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An hourly rate (i.e. $250\/hour)<\/li>\n\n\n\n<li>An on-going monthly retainer (i.e. $100\/month)<\/li>\n\n\n\n<li>A one-time retainer fee for a financial plan (i.e. $3,500 for a six-month contract)<\/li>\n<\/ul>\n\n\n\n<p>These options set up the client to receive the best advice possible with the least possible conflicts of interest. And, when you work with a fee-only CFP\u00ae fiduciary charging on a retainer or hourly basis, there is much less you don\u2019t have to worry about your advisor not telling you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve been keeping up with the news, you may have come across something about financial advisors. In case you missed it, here are the cliff notes: the Department of Labor (DoL) says financial advisors must be a fiduciary in some circumstances. A fiduciary Financial Advisor is someone who must act in their client\u2019s best interest. The DoL ruling may surprise some consumers who had assumed that their advisor was<\/p>\n","protected":false},"author":96,"featured_media":8252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[325],"tags":[],"class_list":["post-8240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top 10 Secrets Your Financial Advisor Won\u2019t Tell You<\/title>\n<meta name=\"description\" content=\"Here&#039;s a list that I\u2019ve put together of some of the things your financial advisor may not be telling you \u2013 and what you can do about it!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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