Not all Advisors are Equal

WealthFactor offers this interview conducted by evidence based investing journalist Robin Powell. Robin spends time with George Kinder as he outlines the major issues in the industry.
 
Transcript:
SUMMARY KEYWORDS
advisor, client, products, profit, financial, relationship, important, most influential people, investment advice, global financial, life, financial advice, devises, financial advisor, adviser, finance, package, advice, listen, digital wealth management
 
00:04
George Kinder is one of the most influential people in the global financial advice profession. It was while working many years ago as a money manager that he realized financial advice was ripe for disruption. Even today, he says most clients still aren't receiving the service they deserve.
 
00:25
It's very, it's very clear all the power and all the money in the industry is in the product companies. So and and what we think of as service providers so that the that that money is geared toward profit, clients in general don't trust people don't trust financial advisors. So they think that any attempted a genuine relationship between themselves and an advisor is likely to be manipulative is likely to be aimed at the profit of the advisor.
 
00:58
George is best known as the founder of what's called the life planning movement. Life planners or financial life planners take a very different approach.
 
01:09
It's a movement that brings focus of fiduciary focus to the consumer to the client, so that it's very clear that the client comes first, not the products, not the profits. It's a transparent relationship. And what I've done is I've trained advisors, to have fabulous relationships with the clients and then to, to build a relationship that's so trustworthy that the client reveals what it is they really want out of life. And often that's a surprise to the client as much as it is to the advisor, and then the adviser devises the financial program to make sure that it happens
 
01:55
when choosing an advisor George Kinder says you should ensure they have your best interests at heart and that they are good at listening. advisors who focus on products should be avoided. Well,
 
02:09
I think that most people when they think about a financial advisor just having to do with financial matters, they're actually the ripest candidates for being taken advantage of because the people that just pay attention to finance and don't really care about you don't really listen to you aren't concerned about your issues are going to be salespeople, they're going to be selling you on products or services. Their main aim is making a profit for their own business. They don't have a passionate concern about delivering you into freedom. So if that's what you want, then you're pretty much asking for the potential of trouble down the line. Of course,
 
02:49
good investment advice is important, but it's part of a much bigger package you should expect from your financial planner.

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