Top 10 Lies Financial Advisors Tell

While reading some other blogs, we ran across this wonderful piece.

What passes for investment advice is a pack of lies being told by a band of thieves. They keep telling the lies because you keep buying them. Here are ten perennial favorites, in no particular order:

Ah, reading this brought a tear to the eye. Another who understands that seedy underbelly that is the world of financial advisors. This group oozes their way to the feeding trough of 'eager but clueless' people who think they are making good decisions and actually brag to others about their use of gutterspawn, otherwise known as 'financial advisors.' Anyway, let's continue with this wonderful article and look at some of the points she makes.

3. "Options are risky." Options can't be inherently risky. For every transaction there is one winner and one loser. The problem is not with options but with the way people are taught to use them.

4. "The S&P will be at x by year-end." Stock prices are random. No one can accurately predict where they will be tomorrow, next week, or next year. No one can consistently pick tops and bottoms either. It can't be done - except by liars.

5. "You can afford to take more risk while you are young." The days of being able to take market risk are gone forever. We now live in a world where we must all fund 30+ years of retirement. Capital losses, at any age, are no longer acceptable.

6. "Our analysts believe this company has great potential." That would be great if stock prices actually reflected the true value of a company. They don't.

The whole time reading this, we just kept nodding our heads in agreement.

Take the time to read the entire article, you won't be disappointed!