December 17, 2007, 7:00 am

3 Types Of Financial Advisors

by: The Financial Blogger    Category: Personal Finance,Primerica Series
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After reading Michael’s comment on my first post on Primerica, I realized that I should bring another point regarding personal finance companies. While I still do not think that Primerica is being honest with its marketing, it does not mean that all their financial advisors are crooked. On the other side, financial advisors working for other companies may not be as good as you think they are. I have been working with hundred of consultants working for a dozen different companies and I established three categories of financial advisors.
Clowns

Yup, you read it right. The financial industry is full of clowns! Clowns are individuals who has no financial background and do not understand products they are selling. Since they do not know what they are doing, you better be careful giving them money to manage. You are asking me how come there are so many of them? Simply because anyone can become a financial advisor within three months!

financial clowns
he best way to recognize them is to read about a specific topic in finance and then asking them question about it. If they what they are saying does not make sense whatsoever, you have a clown in front of you.
car salesman Car Salesman

I feel sorry for the (four) honest car salesmen on earth but they did not get a bad reputation for nothing ;-). Seriously, the financial industry is also full of salesmen that are looking to make the biggest commission out of their meeting. They are nice, polite and full of confidence. Therefore, you will feel satisfied dealing with them and you will be under the impression that they are doing the best thing for your (theirs) finance.

Some salesmen are still good financial advisors since they can have a team that are building the financial plan behind them. They most likely are the best performers of their region. If you feel that you are dealing with a salesman, make sure to meet his assistant, associate and other member of his team. Never forget that he is in to make money, if he has a bad team to support him, you will end-up with a bad financial plan.
Financial Planners

Yes, there are some good financial advisors out there ;-). While the title “Certified Financial Planner” (CFP) is not a guarantee of results, this is the only category of financial advisors that had to write exams that goes deeper than the stupid mutual funds or insurance licence. However, when I am talking about financial planner, I am not really talking about the title but more about the way they handle things.

financial planner
A financial planner will look at all the aspect of your personal finance (estate, insurance, investment, taxes, debts, etc.). He will help you out building a plan according to your needs and your goals. He will also provide useful advice and knows what is going on in the financial industry. This is a financial planner.
I must say that overall, there are a lot of clowns, some bad salesmen and a few good of them and very little financial planners. In my province, the government and the Personal Financial Planner association are working together to create an official standing for Personal Financial Planners. They want them to be recognized at the same level as the notaries, lawyers and other professions. Hopefully, many other governments will go this way in order to insure a minimum of professionalism to the population.

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Comments

Does your province not have investment counsels?

by: The Financial Blogger | December 17th, 2007 (10:43 pm)

TMW, they do, why?

There are a lot of people that are dealing with clowns and car salesman and they will never notice.

You also have to take in consideration that even if a financial advisor goes as bad as being guilty of a criminal fraud, he will not get more than 5 – 6 years in jail in my country…. That’s very sad!

great post! I’ve spoken to so many people in my money coaching role (I’m not a financial planner! I just help people get their cash flow issues in control) who have felt the way people feel after buying the used car. I hope as the cdn pf blogger community grows, and people read them, more and more cdns will become informed enough themselves to swiftly distinguish between the categories. (how’s that for a lofty goal?)

Lol – some great ideas in this post. I think I’ve met a bunch of clowns…

No kidding! There really are those out there, and I’ve only met the first 2! That’s why I decided to take the investment front on my own. It is not rocket science and well worth it since it is YOUR money. Nice post –

[…] 3 Types of Financial Advisors @ The Financial Blogger: The Financial Blogger has categorized some financial advisors into three buckets: clowns, car salesmen and financial planners. If you’re looking for professional help, be sure you hook up with the right type of advisor. […]

I went to one of Primerica’s “interviews” or as I would call it a sales pitch. 1) The example they used was of a home with (around) 60,000 in equity in a home that they have had a mortgage on for 5 years. (I want to say that the home value was 220,000 and they owed 160,000). If I could find homes like that I wouldn’t need a job with Primerica or anyone for that matter.

The fundamental point of Primerica is that people who have not saved and live beyond their means through credit card debt are responsibile enough to invest the savings of a term policy. A term policy was unfortunatly not described by them to the gerbils in the room eating it up.

[…] From time to time, I receive emails from readers asking me questions about their financial situation or about some wicked investment strategy designed by a financial consultant. I noticed one common thing; they have no clue if they can trust their financial advisor or not. I guess this is probably why several people are trying to manage their money on their own since we are surrounded by a bunch of financial clowns! […]

[…] are things that should be done by a professional. The problem is that our industry has too many clowns and car salesmen in their rank. It is your challenge, as a customer, to find the right consultant that will bring […]

[…] they are more likely to hire car salesmen than real good financial agents. In addition to that, there is a huge part of the pie taken by […]

[…] for most people when they go see their banker ;-). I have already discussed the fact that there are three types of financial advisers: The Clown, The Car Salesman and The Financial Planner. Unfortunately, we have more and more car […]

by: harry smith | April 1st, 2009 (2:54 pm)

Primerica is AWESOME and what they do for families is 100% right. the agents get trained very well too

by: someone who knows | May 23rd, 2009 (11:50 pm)

Primerica is the only honest financial company left in the u.s. They are a company that stands alone with absolutely NO DEBT!!!!! They DID NOT take part in the Govt bailout. What company in America can say they do they right thing 100% of the time for their clients. None and if they do theyre lying through their teeth. Forget clowns I call them SNAKES!!!

Financial Advisors are just in it for the commissions, all they think about is what they can barely legally charge a client just to get a bigger pay check. Screwing clients out of HOUSE and Home they dont care what the client NEEDS, they just sell them crap based on a payment they cant afford. And life insurance that has hidden fees that pays the agent a continual fee causing the policy to lapse prematurally, because the cost goes up every year. People are under educated and severely taken advantage of from the clowns who think that the garbage written above is accurate.

by: Answer This | May 24th, 2009 (10:37 pm)

People wonder why former PFS agents expose the kool-Aid factor. This is a good example. I hope this is a newby.

by: If you want to do your homework | August 20th, 2009 (2:18 am)

Product-wise, Primerica is actually legit. Term insurance is best 90% of the time (the other 10, they just won’t sell insurance to), and their segregated funds have some of the best Risk/Return values.

They just have that one downside…

They’re a private company (almost all financial companies have already gone public), and because of compliance, they can’t advertise on the media. That means they have to go entirely by referral and through mass recruiting.

I guess they wouldn’t be a multi-billion dollar company with no debt if it didn’t work, but it’s killer on their reputation.

btw, I’m not a Primerica rep, but I do plan to join once they go public.

by: UUkrull | May 5th, 2010 (4:23 pm)

What an interesting concept be a whole life salesman and put up a blog about Primerica, what did your mother not spoon feed you when you were a baby.
I am with Primerica and have been for 7 years and let me tell you I am a master at getting rid of the crap that you “Snakes & Clowns” sell to the people who are not fortunate enough to understand what they have been issued. The question I always try to put forward is ” When is a lie a lie”? When someone like me comes along and shows people the real truth. Remember we all take the same course and have the abiltiy to learn the same thing it all comes down to how much money you want to rip the client out of and if you can show me how more money into a whole life or universal life can pay you as well as a Primerica Common Sense Fund or a simple Mutual Fund then I want to meet with you so that I can learn what you know.
I had all the garbage that my friends sold me and then I learnt about Primerica and WFG at the same time and chose the better of the two because of their ethics and morals and most of all the integrity to tell the client the truth about the industry and the garbage the the industry is selling. We don’t win them all but we do win 95% in our business because I teach them the truth.
Here is what I know there is no way you can beat the concept of BTID so here is an article for all of the readers.
http://perry.kundert.ca/range/finance/ul-blows/
Hope everyone enjoys it and what I have written as it is the truth no matter what the liars try to say they are still liars. It is amazing how they can go to sleep at night knowing that they have stolen from honest hard working families to provide for their own good fortune.

[…] interests first. This is how you bring in the numbers in my industry. I could certainly play the car salesman and bring in the cash right away. But this is not sustainable and definitely not ethical. The bad […]

by: Jim Carragher | July 6th, 2012 (3:45 pm)

A client for 9 years and a Primerica rep for nearly 5 years i have to say this company has rigidly held up to my expectations, they remain the top funds for most of the past 7 years, the company’s concepts have been praised and eluded to at many financial seminars and in books such as the ABC’s of making money volume #2. PRIMERICA has very high expectations of there members, and the quality of information they present, people who do non comply with the company’s standards are usually not participating in the business very long i can attest to this. Finances are no different than most other careers, clowns are not only in sales they work in health care, construction, dental, politics, banks and yes even financial advisory positions, what distinguishes a clown from a competent person is the time, commitment, the education and passion one puts into their clients and their business no matter what that business is. The comment these PART TIME people don’t know their business is nonsense and furthermore irresponsible , no different than me questioning anyone else’s competency, also my colleagues stress showing better plans “without prejudice” toward their present one, we are at the kitchen table to improve the family’s situation not condemn how they got there. Usually people who criticize us have not even attended any of our opportunity seminars or been on an appointments with us to see the real dramatic changes and hope we present to some very hopeless cases usually the result of poor financial ADVICE don’t listen to everything you see on blogs get to a meeting and make up your own mind about our lagitamacy.