The 5 Biggest Red Flags of Financial Advising
Summary
Tyler Gardner outlines five red flags for vetting financial advisors, starting with the industry-standard asset-based fee model that charges more as your portfolio grows. He advises clients to interview multiple advisors using the "$100,000 question" to distinguish between value-add planners and salespeople pushing proprietary products. The episode also emphasizes the importance of hiring a true fiduciary who has experienced market crashes and ensures your assets are held at a third-party custodian. Finally, Gardner explains how to spot churning and cash drag, and details the simple, no-con…
Topics discussed
Intro and book pre-order bonus
Why advisors matter and the value of behavioral coaching
Red Flag 1: The problems with AUM fee models
Sponsor segments: Factor and Element
Red Flag 2: How to interview and vet an advisor
Red Flag 3: Lack of experience in market crashes
Red Flag 4: Fiduciary status and custodian safety
Sponsor segments: Facet and Copilot Money
Red Flag 5: Pressure tactics and false guarantees
Warning signs: Churning and cash drag
How to fire your advisor and transfer assets
Summary checklist and episode outro
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