Remember that guy who sold you your fridge? You liked him, right? He had excellent people skills.
Or that guy who supplied beer to your local bar? The one who smoked tailor-mades, told tall tales about before he met his wife and played in a KISS tribute band on the weekend. He seemed to know a lot about sales, didn’t he?
Or that old electrician who rewired your cottage 3 summers ago. He was patient and kind with a thoughtful approach to construction. He also knew a buttload of retirees, isn’t that right?
You know what they are all doing now?
They are managing your wealth.
Do they have any education? Nope.
Or only the barest minimum licensing and sometimes- depending on various loopholes – they might not have that.
Do they have any experience? Nope.
Or rather, they’ve been able to convince the big 5 banks that they have “proven sales experience”. Which could mean anything, really.
Do they have your your best interest at heart? Not a fucking chance.
They are there for the enormous fees they charge you to literally LITERALLY do nothing. Most rarely come into the office. They “work from home”. They get their extremely experienced and well educated female – always female – assistant to do the actual work of watching the market, taking calls and making trades. You will speak to her more than you speak to your advisor. Their only job is to bring in more assets, which is why they will court you like crazy then never be available for you ever again until you threaten to transfer out.
How are they chosen for these amazing jobs?
Basically the branch manager assesses whether these men look good in a suit. Yeah, that’s it. The manager asks himself, Would people trust this man with their nest egg? If the answer is yes, he plucks this man from obscurity, even “feeding him” (which is an actual term of art in the business) plum accounts, perhaps from the managers own book of business. If the man is keen, the manager will appoint the man assistant branch manager giving him a second stream of income to enjoy. If the man is white, this process with operate at an accelerated pace. An unemployed uneducated inexperienced male can move to assistant branch manager making 400k a year if he plays his cards right.
Here’s the funny part; the client has not benefited in any way. As a client, you would be better off investing yourself. Or just buying GICs. Better you take a small rate of interest than enrich a young man you do not know and a corrupt banking practice you do not understand.
So ask your investment advisor,
What did you used to do?
And how many of your accounts were gifted to you, salvaged from the abandoned books of young men who did not gather enough assets to make the grade?