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3 Reason To Tell Your Financial Advisor To Take A Hike!

|Includes: Randgold Resources Limited (GOLD)

As you may have guessed by now, Iʼm not a fan of the commercial investment industry as a whole. Yes, there are a few, and I mean very few diamonds in the rough. But, 99.9% of all investment advisors have absolutely no business managing your money and they amount to a glorified salesman masquerading as a financial investing expert. YOU, and you alone have the best interests of your financial future in mind. When you really break down the relationship of a financial advisor and the client, the harsh reality shows that often a financial consultantʼs job is to make their firm and themselves wealthy. And, believe it or not, the objective of your financial goals, and their financial goals donʼt always align. With the investment opportunities and trade record of the Midas Touch premium newsletter, Iʼm extremely confident you will be armed with the tools and resources to manage your own money. In light of my insistence that you take control of your financial future, here are a few signs to watch out for when evaluating your current financial advisor or one that you have considered.

1. The Investment Advisor Doesnʼt Focus Specifically On Investing Advice

An investment advisor that promises to be a jack-of-all trades with investment advice, tax planning, insurance, and a car wash when you leave is the first red flag of a financial advisor that has absolutely no clue how to achieve substantial investment returns. Financial advisors that claim to be a one-stop-shop usually do this to make up for their lack of expertise and knowledge of any one subject. Their inch wide and a mile deep approach works great for generating fees, but not so well for your wealth building and preservation. Iʼm not saying donʼt be friends with these individuals, as Iʼm sure many of them are great people. But, avoid these investment “advisors” at all costs. If this sounds at all like your investment advisor, I suggest you politely kick them to the curb… “C-Ya!”

2. The Investment Advisor Puts Emphasis On “Service”

Your investment advisor is not a car dealership. You donʼt take your money in for a quick wash and tune-up. This type of financial advisor will attempt to emphasize their “superior client service” and a lot of other mumbo-jumbo. Most often, these advisors try to cover up their sub-par understanding of investing by discussing service and will mostly like put you into traditional blue-chip S&P stocks, bonds, mutual funds, let it ride in the open market, and move onto the next client to engage in more asset gathering.

On a similar note, Iʼve often found that when meeting or discussing their investment strategies with investment advisors of this sort, they are hesitant to discuss the portfolio returns versus common benchmarks like the S&P 500. If youʼre investment advisor is not boldly displaying or discussing their returns over the S&P then I suggest you think about an alternative to your investment advice.

3. The investment advisor mentions the words “diversified” or “mutual fund”

Both of these words hint at the traditional investment paradigm of diversification. The concept of diversification (in the traditional sense) was born out of ignorance of financial consultants, but more importantly, affords them the time to pursue the main objective of gathering assets to maximize fee-collection. Spread your assets around multiple asset classes and multiple companies (whether in a bear or bull market) creates a wash on any substantial returns youʼre able to achieve. What the Midas investment strategy focuses upon is finding asset classes that are in a substantial bull run, and then selecting only the top performers after careful scrutiny of each individual company and their individual situations.

To Sound Investing,

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.