Get Wise to Your Advisor: How to Reach Your Investment Goals Without Getting Ripped Off

Afterword

Advisors in Perspective

Many people believe that investing means putting their money behind specific companies, or more generally putting it to work “in the market.” I believe that investors should always keep a broader view in mind: What we really invest in is capitalism itself.

Capitalism is an engine of prosperity that’s bigger than any one company or even one country. The beautiful thing is that we all have access to this wealth-creating force, as entrepreneurs, workers, or investors. When we invest money, we’re reflecting our belief in capitalism. We’re expressing confidence that it can—and will—lift us into greater prosperity over time.

As investors, we often take it as a given that the way to tap into the potential of capitalism is through our financial advisor. But we have to remember that any investing success we enjoy ultimately comes from capitalism itself and not from an advisor. The advisor’s job is to be a useful guide, helping us to tap into the creative power of capitalism in an intelligent and disciplined way. If an advisor is not acting as a guide, he or she has not earned the right to your business.

Advisors should understand that they don’t make money for clients. The markets do that. Capitalism does that. And no advisor is the sole gatekeeper to the markets. No advisor should ever treat their responsibilities casually, and no advisor should ever enrich themselves at the expense of their customers.

If I control the only bridge over a raging river, ...