They forgot number 11
"I got in this business after Jiffy Lube laid me off"

Financial planners and realtors occupy the same rung of the scum ladder. They both play the role of the highly trained professional by throwing around jargon and having a bunch of letters following thier names (most of which are granted following a couple of afternoons in some seminar - although I guess CFP is the exception - A Certified Financial Planner actually has to know a few things to get the certification) Both financial planners and realtors make their living by making their clients believe that they are working in the clients best interests - when all they are working towards is closing sales. Both financial planners and realtors add almost no value - they certainly don't add value sufficient to justify their compensation.

Tell me about it.. do your freakin' research and don't trust (former) friends to be diligent with your little f'n next egg.. most of all, don't EVER EVER use London Life in Canada.. Real nice bag of MF's..

[www.LONDONLIFESUCKS.INFO]

Live and learn, one expensive f'n lesson.. Not that I am bitter.. Really.. Never again..

I work for an asset manager and he's one of the most ethical people I know, so there are good, honest ones out there. But people definitely need to be more careful when they select the person who's going to help them meet their retirement goals.

My suggestion to people is to talk to your friends and find out who they use. Get recommendations. And ask your advisor, planner, whoever, for references. They should have no problem pulling up a couple of names of people you can talk to. If they refuse, run for the hills.

@1234tu: Is the realtors exam supposed to actually be somewhat difficult?

@HomersBrain: For ordering too much oil.

So basically trusting a vest third party with your money may not be wise?

Main job requirements: Dressing up, sucking up, lying like you mean it.

Actually, my wife is a realtor. She had to take 80 hrs of classwork, two tests ( one by the company giving the course and the other by the state) and is required to take upwards of 50 hrs a year in continuing education. As far as working towards a sale, she does not work for free and I assume you don't either, but she may spend months working with clients to find a home for them or marketing their home and sometimes not close the deal( commision only no sale no pay). She is highly ethical and never in her 5 yrs in the business has she lied or tried to sway a client in order to get a deal closed, she considers her clients her friends and considers her relationships over and above any money she gets from her career.

Irresponsible. The last sentence does little to make up for slamming financial planners everywhere, many of whom are honest, hard-working people. Yes, I am not naive and assume that everyone is looking out for your best interests, but maybe you guys could dial down the fearmongering a little, especially when it has the potential to cost decent people their jobs in an industry that isn't doing so fantastic right now.

@1234tu: I totally agree with you

Madoff epitomized the whole industry. Notice he isn't being punished too harshly (ie not going to court) where he can sing about the others involved in the same scam. In fact, the federal government and the federal reserve is running the biggest Madoff/Ponzi scheme ever. If you and I printed money like they did, we'd be arrested. If we encouraged people to put their nest egg in a "401K" plan like they did, we'd be in jail, because if you're in control, you can do whatever you want. If we try to play along, we get locked up. If we spend more money than we can pay back, we go to jail.

@1234tu: Agree, though at least a realtor has to make a sale before getting paid. Financial advisors make money even if you end up losing everything. Just try to find one who will accept payment only if their recommendations make money for you. While there are always risks and unknowns, I think a financial advisor with a proven overall record of performance could end up doing incredibly well - even if a few clients end up doing badly. At least the clients who lose money won't have had to pay extra for it.

@vastrightwing: I'm pretty sure we got rid of debtors prison a long, long, long time ago. Also, by encouraged people to put money in 401ks, do you mean provided some tax benefits to using 401k accounts? All I can say about the feds and retirement is thank the freaking lord we didn't "privatize" social security.

i fail to see the value in this post. those ten items can be used in any other industry/profession.

@redclear55: perhaps not those EXACT 10 items... but the general idea.

believe what you want. a good financial planner can bring options to the table that you knew nothing about. they'll have a network of knowledge & industry experts to assist you in everything from estate planning to insurance planning to financing to tax assistance.

can you do all this stuff on your own? you probably can...but if you're wrong, there's only one person to blame. if you feel confident that your knowledge & contacts exceed those of a good financial planner; go for it.

What a junk article. It's so far off the mark, I don't even know where to begin.

I love my financial planner. He's been a family friend for close to thirty years, always explains thoroughly what he thinks is a good idea, why he thinks it's a good idea, and makes sure that everyone has reasonable expectations - never making promises. I can phone him with any problem, day or night. While I'm sure there's scum out there in any field, this really doesn't account for guys who really do work hard and do help people.

@Shoelace: I'm gonna hire the 12 year olds who win the Stock Market Game every year. That's a proven track record.

@Gene L: Ah facebooker, there's a reason they're not doing so well - they suck at their jobs.

The financial planner I had years ago was a shill for New York Life and got me into some BS annuity to save for a home...what a jerk. He also got my secretary into that NuSkin scam. I fired his ass & finally got most of my money back from NYL when I blew a gasket & showed them some records. I also experienced AMEX and later their IDS incarnation. These guys all suck IMO. Learn to manage your own money.

The one thing that everyone looking to invest should know is that beating the market is the financial industry equivalent of winning the lottery. It's not very likely that you will, and even then you (or your financial planner/advisor) can't really plan your future around doing so. Invest in passively managed index funds and get your expenses as low as possible. Mutual fund managers rarely beat the market and even when they do, it's unlikely that whatever gains they achieve doing so will make up for the additional expenses incurred. If your planner guarantees that you will beat the market he's either an idiot or a liar.

I am a Financial Planner. I have a degree in Economics and have attained my CFP designation. That being said, I have to agree with some of the opinions of those in financial services. One major problem is that we are lumping, stockbrokers, insurance salesmen, mutual funds reps etc as Financial Planners.

I definitely believe there needs to be higher standards and requirements on who calls themselves a Planner. I would also like to see Planners organized and paid more like lawyers and accountants.

@Powerlurker: you're right, but this is only one small aspect of what a financial planner actually does. for example, a good financial planner also knows how to unwind your investments in such a way to limit your tax liabilities. she knows which insurance you should (& shouldn't) buy to make sure your interests are protected. she can help you build plans for paying for college, retirement, buying a new home, starting your own business - simply investing in index funds on your own doesn't do any of these things.

it's certainly possible to do all of these things on your own, just like it's possible for you to file your own taxes, repair your own car, make your own clothes or put a roof on your home. but just b/c you can do something yourself doesn't necessarily mean you should. & even if you decide to do it on your own, it's still wise to consult someone who is knowledgeable before making any big decisions.

that, imo, is what financial planning is all about. it's not about beating the market - it's about providing consumers with the tools, tips & tricks necessary to make an informed decision.

@1234tu: The difference is, unless you're a retard or insanely wealthy, or have just come into a shitload of money (inheritance, lotto), you don't really need a financial planner. But when it comes to selling my property, I'd prefer to not have to deal with that headache. My time is valuable and better spent on my hobbies-I have a stack of novels I want to read.

@Gene L: Gene, we're running background checks on new commenters. We're going to need your facebook password.

Sincerely, Chris Walters

@redclear55: My problem was that, judging from the style, that post reads like the guy/gal is bitter they didn't get that job as a writer for Letterman

@Gene L: Also, consider reading the article. I know, the comments are so enjoyable to read that you are tempted to just read the title and skip to the musings of your quick witted friends. But seriously? Irresponsible? What you're reading got rejected at a Late Show with David Letterman writer's meeting. If you read the actual article, there's more substance.

Not to mention, consumerist is not writing off all financial planners. Notice how at the end Consumerist links to "how to hire a good financial planner." So the post doesn't blindly denounce them all, it's a snippet of a feeble attempt at humor from another sight listing the pitfalls, and links to how to protect yourself.

Learn how to read before you bash Ben Popken and co.

@TheDayIsMine: ugh site not sight

@TheDayIsMine: A good real estate agent is a must if you have children, everyone in the house has jobs, or you're selling a property that's far from where you live. But it's very important to get a good one, like financial planners, there's a lot of scumbags and incompetence out there.

@vangogh71:

"I definitely believe there needs to be higher standards and requirements on who calls themselves a Planner. I would also like to see Planners organized and paid more like lawyers and accountants"

Boy, you sure have some high standards set for yourself don't you?! Why not just shoot your wad & go for being lumped in with bankers & pedophiles.

Runaway from any financial planning or wealth management services offered by a bank. They are sales people above all else, forced to push the product of the month. Their fees are double that of an independent group, and the FA's just push money into funds without regard for the risk

Having worked as a financial advisor (Note, not planner)I can attest to the list.

The sad end to this is that there is a serious lack of responsibility for decision your advisor will offer. In the end most clients favor the smooth talker shark who promises the moon - when everyone knows there is no moon to deliver - and the best planner, those with realistic, long time plans and sustainable returns, are seen as under-performers.

The ONLY consequence is how much money you make now. By the time anything goes wrong most planners have moved on anyway.

It is one of my proudest achievements that on average my clients lost 8% of portfolios that had, for past years, been performing around 18%, when the Internet Bubble came along. Not one cent of invested capital was lost by any of my clients. But how could I compete with 30-40% returns and promises of more at the height of this insanity?

Of course those who went for the high rates ended up spending years just to get back to point zero after everything melted down. As for the clients who stayed with me, most were retired long before the current collapse, with resilient, conservative investments that may have suffered a bit but not too, too badly.

The IS no free lunch. Potential returns are ALWAYS, ALWAYS commensurate with risk. And, now and ever, an advisor who promises you anything at all is not your friend.

Investment is a number game, where both greed and panic are your worst enemies. You can believe that if there was a silver bullet to become rich on stocks and bonds, the planner or advisor would use it for his or her own profit, and would not be plodding in a door-to-door, cold calling business for commissions and trailer fees.

So how do you pick an advisor? Look for a hard working individual that seem to share the same values as you in general. Knowledge of market means little since most use the same few software solutions to datamine - this is where that slick looking presentation comes from. Look to someone who will listen to you and your goal, and explain how to get there, and tell you straight up if it's a fantasy or a realistic achievable objective.

@nataku83: Ah yes, Social Security - The biggest Ponzi scheme of them all!

Why does this field even exist?When I got my first severely overpriced car repair bill,guess what I did?I bought the service manual and learned about what's what myself.
One should take time to learn how to manage money yourself,at least so that you can tell the liars from the honest.

As a former "financial planner", I completely agree with this article. Although I don't believe it is the fault of the planners but rather the organizations they work for. I know I took the position thinking I would become a financial analyst, only to discover that the only training I would get in that regard was how to regurgitate a sales script that made me sound like I knew what I was talking about to the absolutely clueless. When I was admonished for spending too much time working on a plan and not enough time on the phone cold-calling people, I knew what a joke it was. That is why there is such huge turnover in the industry.

But I think that only applies to the big, national planning companies. If you can find a local, independent adviser chances are you will actually get value from the relationship (but there are always charlatans in every industry).

@wvFrugan:

What a stupid reply. vangogh is trying to bring higher standards to the profession and you think he is being narcissistic? I agree with him 100%.

The reason this Consumerist post exists is because anyone can call themselves a financial planner. I wish only CFP's could call themselves financial planners.

@HomersBrain:

Hehe that would be probably 50% of financial planners out there

@Gene L: Oh, I thought you were adding "Irresponsible" to what you thought should have been on the top 10 list...

@Silversmok3: Do you have all the tools to repair every car? Your car may be straightforward but it doesn't mean that others have the same requirements.

The same goes for Financial planning. If all you are seeking is info on what is the best investment then fine, but most of my clients have much more complicated issues, divorce, remarriage, older parents, savings for children's education.

I can't do everything for my clients, but I sure know who I can refer my clients to to take care of their needs such as wills, Power of Attorneys, health directives, tax issues. Do you think that someone who is running a 5 million dollar family business has the same needs as a salaried employee? I know the answer and that is why I am valued by my clients.

@mac-phisto: Dude, this is the internet. Everyone is an expert at everything. There's no need for "professionals"...

Like asking a used car dealer which deal is right for you. I was with my financial planner for 8 years, and today my investments are at -0- gain. Could have done much better with CD's even. I don't want to calculate how much I paid him during that time, but he has a big home, a pool, 3 cars. They say you are responsible for your own investment decisions-then why do I need this "financial expert"?

When I first glanced at this picture, I thought the bearded fellow was about to deck the older "financial-planner-esque" fellow.

And yet, given the context of the post title, I did not think it strange.

I agree with vangogh71 - this article appears to lumping in everyone who sells financial products as a "financial planner". As a fee-only financial planner, I also encourage the growing professionalism of this field, with developing standards and requirements of who can call themselves a "planner".

The article ought to be called "10 Things Financial Advisers Won't Tell You". You can be a financial adviser by just getting licensed to sell something, but you shouldn't be a financial planner without a designation and actual experience.

@Gene L:
i agree with this comment, the summary comes off as totally banal and immature - which i'm sure is the only part many people read...

just because everyone can grow their own food and cook their own meals doesn't mean they want to. Financial Planners/Advisors/ect exist because people find value in their profession. there are always going to be some bad apples in a batch, but that is inherent of every profession. this article only has weight because of the recent financial turmoil.

@Powerlurker: mutual fund managers rarely beat the "market"? how do you define the market of your investments? while passively managed index funds are lower cost, they are still actively managed... just relatively less than the traditional mutual fund manager. Most indices (S&P, Russells, etc) are re-balanced once or twice a year. the more active funds cost more b/c they are trading more often. the benefits are obviously an ability to adjust to a changing environment.

both active and passive funds have a place. the more important aspect is a well devised asset allocation plan based on your investment policy. how much do you need on monthly/annual basis? how do you translate that into a target rate of return? what mix of assets will help you achieve said target rate of return? it's a bit more complicated than going with the cheapest product available.

you get what you pay for.

Let's make some meaningless generalization and pretend it's journalism. After all, if you say anything at all there's probably SOME nugget of truth in there somewhere.