Financial Planners & Your Money

I see people handing over money to a financial advisormight do well. They are obliged to buy shares when
or broker or fund manager and expecting them tothey get your money and not wait for the right time
make money for them all the time. Granted it's their joband price. They don't automatically know how to make
- however 70-80% of them don't do better than themoney just because they are fund managers.
market average.Don't get me wrong. Not all brokers, financial advisors
In my time mentoring and coaching people in the shareand fund managers are in this bracket. Some do know
market I have met many with sad stories about howhow to make money as well.
their trusted broker or financial advisor took theirHow can you take control?
money and lost lots of it. Well in reality what happensBy teaching yourself how to make your own share
is that people hand their money to the broker orinvestment decisions without the aid of brokers,
advisor or fund manager quite willingly. Mostfinancial advisors or fund managers.
inexperience investors loose money in the shareBy making sure you get plenty of practice at it without
market. This includes brokers, financial advisors andrisking your funds so when you do invest real money
fund managers.you are confident that you will get a better return than
I have coached brokers and fund mangers on makingthe average, which also includes most brokers, financial
above average profits from the share market. Whyadvisors and fund managers.
would that be the case if they already knew how toSecondly I constantly meet people who are taking
do it?advice from people who are not rich.
Brokers know how to sell brokerage. That's what theyPeople come to us with stories about where they get
do. They don't automatically know how to maketheir share tips from. Some are quite frightening. Most
money just because they are brokers.tips lead to financial disaster. Occasionally one might
Financial advisors know about investment law, knowpay off, but that is rare. Fancy putting you money into
what they need to disclose, know which fund managera share tipped by a taxi driver.
pays them the most commission for putting otherUnless the taxi drive has made a pile of money from
peoples money into their funds and know how not toshares. In that case he is worth listening to. Again
get sued. They don't automatically know how to makethere's one main way to fix it - and I've given it to you
money just because they are financial advisors.above.
Fund managers know how to buy shares they think