You’ve heard it before.
“You can trust me,” your advisor says.
Many investment brokers and advisors try to convey this notion to clients, whether the client knows it or not. However, how do you really know if you can trust them?
Sales Over Competency
The financial industry has its faults, to say the least. The industry depends heavily on sales tactics rather than legitimate investment advice and competency of professionals. Thus, it is a competitive industry where the best salespeople win.
While salespeople are not inherently conflicted, this may be the case when they have a vested interest in the success of their sales efforts. Thus, when your financial advisor says “This investment is best for you,” how do you really know if it’s best for you or your advisor?
This is why we started Investor Lifeguard – to change how investors of all types look at the financial industry when it comes to their money.
Looking for Answers
Along our investment journeys, we have surely been told how much Wall Street bankers know about the market – which we are told is certainly more than the average investor. But, in reality, is this actually true? According to many proven studies, the overwhelming majority of fund managers and investment bankers fail to beat the market. If they have so much knowledge about the market, why aren’t they executing on their knowledge to bring their success to other investors?
As we begin to understand how difficult it is to beat the market, we understand that many professionals don’t actually have the answers or the resources that we seek. This understanding gives us perspective and puts us on edge when we hear brokers and advisors claim that they have “the investment for you.” While others jump blindly into such opportunities that are often too good to be true, we both know that this raises major red flags.
Investor Lifeguard is dedicated to informing and educating the public on how investors of all types can avoid becoming victims of such deceptive practices and protect themselves from the sharks that are lurking in the water.