Monday, March 22, 2010

My financial adviser is a yes-man!

Fortune this week features new research by Harvard behavioral economist Sendhil Mullainathan. The research shows that most financial advisers tend to reinforce the biases in a client's investment strategy, rather than fundamentally altering the approach. Advisers seek to keep the first-time client coming back. Thus, they fail to confront the client and challenge the flaws in the investment portfolio. Do you have a financial adviser? Is he or she a sycophant? Does this person reinforce your predispositions?

1 comment:

China Ream said...

Your financial adviser should be very knowledgeable and experienced in the business you’re in. He or she should be able to keep up with the trend and anticipate the investment that can reap higher interest and ROI in the long run. Such an expert should also point out crucial issues, even if they’re not in line with the client’s perspective.

China Ream