3 Flaws of Salespeople That Will Hurt You

April 7th, 2020
April 7, 2020
Joseph Vecchio

THREE Character Flaws That WILL HURT YOU – Ignorance, Incompetence or Incentives.
1. Ignorance- It is possible that they just didn’t know how to analyze your situation holistically/comprehensively.
2. Incompetence – It is also possible that they did not have the right resources or if they did how to apply those resources the right way.
3. INCENTIVES (a.k.a.= Commissions & Kickbacks) It is also possible that the incentive structure will trump everything and motivates them.


Working with the right advisor not only can give you the answers to some of the big financial decisions you have, but also provide additional benefits in the totality of an ongoing relationship.

Research from Vanguard attempts to quantify the additional value one can receive when working the right advisor. The benefits they highlight are as follows:

Service Provided By The Right Advisor = What It Could Mean For You
Lowering Expense Ratios = Up to .45% back in your pocket
Rebalancing Portfolio = Up to .35% of increased performance
Asset Allocation = Up to .75% of increased performance
Withdrawing the right investments in retirement = Up to .70% in savings
Behavioral Coaching (Your Personal Financial Therapist!) = Up to 1.50%
Grand Total = Up to 3.75% of added value

Think about what an extra 3.75% could do for your wealth over time. If you take $100,000 and earn 3.75% you get a future value of $208,815. That’s an extra $108,815 for every $100,000 invested! Having the right advisor matters. Sadly, a lot people are not in a situation where they can actualize this additional savings because they are dealing with various levels and combinations of ignorance, incompetence or incentives.

So how can you increase the odds that you will achieve some of the benefits mentioned above? Take these steps:
1. Ensure you are working with a fiduciary. Work with someone that is a fiduciary who is legally required to put your best interest first. If they are a broker or dually registered as a broker and fiduciary, thank them for the free coffee and move on.
2. Ask the right questions. Inquire about their level of knowledge, experience and incentives.
3. Consider their approach. Watch for solution language before understanding the context. What is the approach taken to identify the needs of an individual?
4. Incorporate a litmus test. All products and most solutions have pros and cons to them. If all you hear are the advantages of something that should at least kick in some healthy skepticism. Inquire about the pros and cons of doing something other than what is being recommended. If they can’t provide what the other side looks like it could be due to ignorance, incompetence or incentives.

You wouldn’t go to a doctor and expect him to provide a solution with the mention of a few symptoms would you?
You would expect him to go through the paces to fully understand what is happening internally to then prescribe the right course of action.
Diagnosis without proper diagnostic can lead to deficiency, danger, or death when it comes to medical issues.

Don’t subject yourself to this same approach when it relates to your finances.
Seek out someone that isn’t subject to theses three Character Flaws

Financial Checkup with stethoscope wrapped around pink piggy bank

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