Did you happen to see the Great Presidential Debate a few weeks ago that debuted 10 Republican candidates for President of the United States?
I thought Fox News did a decent job asking tougher questions that many of the candidates did not want to answer. I watched the candidates use the same evasive tactics that financial advisers use when they want to avoid questions about their competence, trustworthiness, and results.
One of the candidates had it right when he said Wall Street money and Washington's political clout run this country.
One wants your vote the other wants control of your assets. One wants power. One wants money. The similarity of their tactics is disturbing and the common denominator is you.
Tell Them What They Want to Hear
Every politician and financial adviser in America is adept at telling voters and investors what they want to hear.
Politicians make a lot of false promises during their campaigns. Big promises produce the most votes. Their promises are very misleading when they have no intention of keeping them.
Financial advisers are also adept at telling people what they want to hear to gain control of their assets: "I am a financial expert you can trust. I can deliver financial security and comfortable retirements for low risk and expenses."
Promises & Claims
Politicians make promises about the actions they will take when they take office. They may or may not have track records that document past results. You are supposed to blindly believe their promises and vote for them.
Financial advisers are not supposed to promise future results, so they make undocumented sales claims about their past results. You are supposed to believe your future results will be the same as their past results. You don't even know if the past results actually happened.
Both Have Outs
Both groups have similar outs when they fail to deliver promises they made to win your vote or gain control of your assets.
Politicians blame other politicians for their failure to deliver on their promises. After all, they have no control over how other politicians' vote or the veto power of the President.
Financial advisers also have their out. They have no control over the performance of the stock market. You lost money because markets went down. You should have been more conservative.
These processes have worked for 100 years for one reason. By the time you figure out the promises or claims are exaggerations or lies the politicians are elected and the advisers have control of your assets.
It will be years before you vote again. Meanwhile, the advisers have already made a lot of money from your assets.
Money & Power
Politicians want to stay in power. They need huge amounts of money and large numbers of votes to make this happen.
Financial advisers want to retain control of your assets for as long as possible. This maximizes the revenue and income they produce from your assets.
What About You?
You want to make the right decisions when you vote for politicians and select financial advisers.
You have to look past promises and undocumented sales claims that are designed to tell you what they think you want to hear.
You have to look at underlying criteria that impact their competence and trustworthiness.
Originally posted on Paladin Registry.
About the Author:Jack Waymire worked in the financial services industry for 28 years. For 21 years he was the president and chief investment officer of a registered investment advisory firm with more than 50,000 clients. He left the industry in 2003 when his book (Who's Watching Your Money?) was published by John Wiley. That same year he launched an investor information website (www.PaladinRegistry.com) that was based on the principles in his book. Jack is a columnist for Worth magazine, a frequent blogger on major financial sites, and widely quoted in the media including the Wall Street Journal, Forbes, BusinessWeek, Bloomberg, and Kiplinger. Follow Jack on Twitter @PaladinRegistry.