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September 02, 2008
Playing politics with your money
Because we're in the middle of the major party conventions, I feel like pointing out again just how similar politicians are to financial advisors. You can't escape the ads from both financial firms and candidates, and the political advertising will only get worse until early November.
At least the political ads will come to an end, if only temporarily. Sadly, we're stuck with the brokerage firms, mutual fund companies and financial advisors campaigning year-round.
All of these financial services firms are clamoring for your "vote." They tell you how if you select them over their competitor, they can help you find peace and prosperity. And yet, when asked how they'll solve your problems, it's by selling you the same garbage everyone else is selling.
Sound familiar? It's like the politicians who promise change, who promise to reduce your taxes or create jobs, but their so-called solutions are the same ones you hear year after year. There's no meaningful difference – it's the same old ideas, repackaged with a new fancy name.
The reason politicians make lofty promises is because they want to get elected. The reason they don't make the bold moves they promise after they're in office is because they want to keep their jobs. They think of their offices as jobs, and in order to keep getting elected, they have to make lots of empty promises without actually doing anything. They're not willing to make the truly tough choices or say the hard things, because that might make too many people mad, and they could lose their office.
Financial advisors are the same. They view their positions as jobs, too. They promise you great things so you hire them, and then they sell you the same mutual funds, annuities and similar products they've always sold because that's how they make their money. That's how they keep their jobs. Whether the products actually do you any good is secondary.
Whenever you talk to your financial advisor, pay close attention to what they're suggesting you do with your money. If you left one financial advisor because the products he suggested weren't helping you achieve your goals, what makes you think a new advisor selling the same products will do any better?
You've heard the expression when it comes to politics, "Vote with your pocketbook?" When you evaluate political candidates, what do you do? You pick the one who best matches up with your needs and ideals, right? Frequently that means the one who will represent your economic needs the best. It should be the same when you pick a financial advisor. Pick one based on his or her ideals, the one whose approach best fits your goals. Learn to see past the clever advertisements and sales pitches to find out whether your advisor is a good fit.
To help, I encourage you to download a free Snider Advisors Special Report we've just made available, called "12 Red Flags When Dealing with a Financial Advisor." It's a list of things you should look out for, whether you already have a financial advisor or you're shopping for a new one. Think of it as a voter's guide, but for financial advisors. To download it, go to www.kimsnider.com. (Note: The report will be free for a limited time, so download yours today!) If you have a friend who could benefit from the Special Report, please send them a link to this post so they can download a copy.
Kim Snider is the President and Founder of Snider Advisors, an investment adviser registered with the SEC, focused on teaching individual investors a sensible, long-term investment approach focused on maximizing cash flow. For more information on Snider Advisors or the Snider Investment Method, please visit snideradvisors.com. Her book, How to Be the Family CFO: Four Simple Steps To Put Your Financial House in Order, will be in bookstores October 1, 2008.
Snider Advisors makes no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 888-6SNIDER to request the Snider Investment Method® Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments, including the Snider Investment Method™ are subject to risk, including possible loss of principal.
Focus of This Blog
Kim Snider is an author, speaker and host of Financial Success Coaching, Saturdays at noon, on KRLD Newsradio 1080, Dallas - Fort Worth. This blog is primarily devoted to empowering individual investors with information to help them be good stewards of their money. Above all, it is about achieving true financial success. Kim's book, How To Be the Family CFO: Four Simple Steps to Put Your Financial House in Order is in bookstores now. Order yours from Amazon or other fine booksellers today.
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