Why I quit being a financial advisor by Rico Dilello


By Rico Dilello

It is times like these that I am so glad that I quit being a financial advisor. Diversification isn’t always effective in protecting your investment portfolio. Especial now, when stock markets all over the world fall in value at the same time. I really don’t miss the phone calls that I would be getting right now from clients because of this stock market correction. “Sorry, Mr. Client but I can’t make the stock markets go up for you.” (Hand holding isn’t my strongest suit)

One of the most frustrating part of the job was setting up achievable financial plans that were simply ignored. It is maddening when you put a plan together for a client to pay down the mortgage and come back a year later to find out that the client just booked a Caribbean cruise for the whole family. “Sorry, Mr. Client but that wasn’t in the plan.”

Some people just can’t be sold on putting a budget together, having a financial plan and investing their savings. They would rather spend time keeping track of standings and game scores of their favourite sport teams than tracking their monthly expenses.

The main reason for quitting is 80% of mutual fund managers don’t beat their benchmark index. Low cost index funds and exchange traded funds are more readily available today for investors to construct their own investment portfolio. Plus the internet has all kinds of free financial information. Investors have access to the same technology that financial advisors use to deliver services to their clients.

Why pay me $3,000 to $10,000 a year for peace of mind?

  • Do you need someone to reassure you during market corrections to stay on course?
  • Someone to remind you regarding deadlines (retirement contributions, education plans)?
  • To review and help make adjustments to your financial plan?
  • To assist in evaluating the financial pros & cons to major life changing decisions?
  • To help you understand complex financial investments?
  • Do you lack the discipline to do it yourself or just don’t have the time?

In my humble opinion, over the long-term, paying for peace of mind is just too expensive. No one will care more about your money than you. I recommend paying for legal advice for wills & estate planning or tax advice from a accountant.  However, buyer beware, just because an advisor has passed the required number of courses doesn’t make them a good advisor.

Disclaimer: I have a very bias opinion on paying for investment advice, there are more bad than good!

By Rico Dilello


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