Do you know there are financial advisors who earn well in excess of $1 million per year with nothing more than a high school education? It’s because they are in sales. Sales has little to do with book smarts.

One of the first warning signs that an advisor is not being completely forthright with you is how he or she reacts when you ask them how much they make. Just ask them what their income before taxes was last year and then sit back and watch. Normal people will answer that question with a number. A financial advisor will usually launch into a story. This is a warning sign.

One of the reasons they may not be upfront with you is that they are ashamed of making so much money for doing so little. This isn’t true of all advisors, but probably 90%.

Considering you have to give them all your financial details, you should feel free to ask them theirs. It’s a two way relationship after all… isn’t it?

Tags: book smarts, financial advisors, money, squirm