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Originally Posted by Cecil Terwilliger
Ok with all due respect to the advisors on CP, let's not pretend like everyone who is an independent advisor is free from ripping off customers.
In fact, because they tend to have a lot less oversight and are commission based, you may find they have more incentive to rip people off. Places like Investor's Group have been known for years to engage in slimy dishonest high pressure sales tactics.
Bank staff have traditionally been more like shopping at best buy. Their staff are getting paid no matter what and tend lack knowledge.
But independent advisors, like Edward Jones, Investors Group and the like, are the Future Shop/Visions. It is totally buyer beware. You may get A+ service or you may get totally ripped off.
The problem with the current model is that bank staff are being pushed into the world of scummy places that engage in high pressure sales tactics for the sake of $$$. Pretty soon you won't even be able to get the mediocre generic investment advice that banks have been known for.
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Quote:
Originally Posted by ken0042
I was thinking of maybe comparing it to vehicle repairs, and going to Canadian Tire vs going to an independent shop. Where CT generally isn't horrible but you are dealing with rookies who may have their own sales targets, and an independent you would want to know somebody who has dealt there to see their experiences.
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Very good points, they're not all 'Beacons of Virtue' much like not all Bankers are little 'Rat-Men.'
You've got to use your head and thats why you go based on referrals.
The problem in the 'Independent Financial Advising' Industry is that there is very little oversight and very few barriers for entry. Literally, and I'm using the term 'literally' literally, not figuratively, but literally any old idiot can throw up a shingle, connect with one of the major investors and voila! They're a Financial Advisor now.
Its a huge credibility issue, not unlike the one that Tax Accountants experience when a client sits down at H&R Block and slowly comes to the realization that they have more tax experience and knowledge than the guy across the desk preparing their taxes for a fee.
But thats something that the market can help with. You use referrals from people that know an advisor well and decide from there.
I'm not referring my clients to anyone I'm not 100% comfortable with because I dont want them coming back and saying:
"How could you refer me to that idiot? That guy is so stupid he couldnt find his own ass with both hands and a map!!"
Thats not good for me, its not good for the Advisor and its not good for the client. Wheres the winning?
But at the same time you have to account for the fact that that client could be crazy! He could have been trying to invest using his collection of 1930s Kellogg's Cereal Box Tops for all I know.
If someone is making a living at something on their own thats a good indicator that they know what they're doing, but like everything, its not the only indicator. When I refer people I tell my clients:
"Talk to him, meet with him and if you like him, go with it."
You dont get that at a bank. You are trusting the reputation of that Bank and that they will give you someone who knows what they're doing and that can often be a crapshoot at best.
I'm much more willing to trust a person that I've met than a huge multinational bank rolling out employee-bot 00005496134.