Why Your Advisor Hates Certain Investments

Have you ever wondered why maybe your advisor or some advisor out there you’ve seen hates a particular investment? They’re just so adamant against that one group of investments and they just won’t even use it, or they’ll make comments negatively all about it. It’s interesting whether you’re scrolling social media and you’re seeing ads against something, or it’s your advisor just adamantly not wanting to talk about, they’re saying that you should never do that.

So we want to spend a little bit of time with this, segment of this show here and Jon and I talking about maybe what is behind that, and why would an advisor hate a particular group of investments? Yeah. Great point Art. I mean, yeah, different advisors may have their, their biases towards, or against certain types of accounts.

First, you’d want to look at what is the firm that they work for. Sometimes different companies will only allow their advisors to work with certain types of accounts. So that’s number one. Along with that then, two, you have to look at the the licensing of that individual. So certain individuals again, and in our industry there’s different licenses that you can get to offer different types of investments or different types of accounts.

And so you have to see what, what their credentials are and what they’re able to work with. Some some individuals or companies are going to be compensated differently based on what investment or accounts you use. And so with that there again might be different biases, whether that individual’s looking out for the best interest of you or for their own pocket.

And some may just simply not like certain types of accounts because they maybe don’t fully understand what those different investments are. And so again, it’s one where you have to be looking at multiple levels here to best understand sort of why is there a bias for against certain types of accounts? You know, as we think about this, Jon and I and the whole team here at Centennial Wealth Advisory across all of our offices in Northern Michigan, we got a little bit of a problem with this.

When people come in and just they have this adamant thing because because guess what? One size doesn’t fit all. You know, everyone’s plan is, is uniquely different when you’re with all the different families that we help across northern Michigan and beyond, all across the United States. It is interesting how there are no two people that are alike and how they’re so different.

Because let’s talk about this for a minute. What if you’re income focused in your retirement where you really want to, you’re trying to maximize the amount of income and that’s your top priority? Well, that might be vastly different than the person who’s trying to grow their legacy or something like that. So it’s likely going to need to talk about different investment tools.

You know what? If you’re very anxious about the market, you’re worried about the market risk and you don’t want that, well, guess what? Likely going to be looking at something different than the person that loves, you know, cryptocurrencies in the tech world. Right. So there’s we have to start looking at things like that. What if you’re very tax sensitive.

What if you’re really worried about making your portfolio as tax efficient as possible? Well guess what. There’s likely different groups of things to talk about there. And finally, what if your biggest concern is health related stuff, long term care, health insurance driven, that sort of stuff that may pop up later in life? Well, there’s tools for that out there too.

But if we were just adamant that something isn’t going to work, we could be looking at all those different tools out there to make sure that they’re meeting your needs the best way possible. That’s a really good point, Art, about different tools serve different objectives. So last point here is is getting into asking better questions. So if you’re sitting down with your advisor then walk through, why don’t you recommend this and whatever whatever product that might be and and just listen to what their feedback is.

What are the different pros and cons of different types of accounts? Again, that’s something that should be important. And they should be able to clearly articulate what the advantages or disadvantages might be and why it may or may not fit your situation. Are there different investments or accounts that your firm doesn’t offer and and better understand what that looks like and lastly, how are you compensated?

We believe at Centennial Wealth, it’s something to be transparent about. Here’s how we’re compensated on this versus this. Just so that way, you know, right down to the to the penny, pretty much how that’s going to work. And then you can make a decision based on what best fits your needs. Absolutely. So had challenge for you out there is is, you know, if your advisor or the team you’re working with can objectively talk about both sides of the story, if you will, with a different tool.

Are you actually getting advice or are you getting a sales pitch? So yeah, I believe in and all of the experiences we’ve had across our team, we’ve yet to find the perfect investment yet that just meets all these needs. So and I’m guessing that another individuals haven’t found that yet. So we need to be looking at all these options.

We’d love to sit down, walk through this with you and look at the portfolio you have. Get a free analysis of what you have, and maybe look at some of the alternatives out there. They’re available for you here so you can plan to retire well.