shipwreck: Some are they will sell you stuff to get commissions like annuities or loaded mutual funds. People who use them often blindly do what they tell them to do and don't even know they were robbed.
My dad and I each dealt with one person who gave bad advice but I learned my lesson and refuse to speak to them again most of the time. I met with my broker when I retired to help me roll my 401K to IRA but told him I don't take advice I will listen but not take advice. I have been working without talking to them and doing fine without them so when I lose money it is on me so I am not angry.
My brother and his wife use an adviser and he keeps asking me what it cost me and I tell him nothing but I don't think he believes me. He told me he pays 3% then his wife said they don't pay 3% but I know he is giving away his money to get bad advice, they sold him annuity once but he said I was right it was bad so he cashed it, that is expensive, he is smart enough to make his own choices not be sold stuff.
You have NO obligation to use a Financial Adviser should you choose not to…..just use a discount Broker…..
Your question is a lot like asking "Aren't plumbers just leeches trying to personally profit by inserting themselves between you and your clogged toilets?"…
What is your problem with people charging for services they provide?
If your premise is true then any advice/service that you pay for in your life is a leech. Like Amon said, the plumber. Or maybe a tutor, or your physician, or your auto mechanic, whatever? If you can do the job then you don't need the advice/servicer.
It is like any profession, the work is done my people, and people or more or less honest to different degrees.
In any profession, there are ambiguous situations that yield differences of opinion. But then there are also unscrupulous people who care more for themselves and not for others.
The best way to protect yourself is to work with someone who works with people you trust, and to educate yourself about the things your are talking about. The internet is good for that.
Like every profession, some are better than others.
Left to their own devices, many investors do a terrible job of investing.
I`m inclined to think so but I`m also a 9/11 truther.
It depends on how well versed you are with the markets. If you have no clue how to distribute your investments to reach your goals, then you should hire one. If you are willing to put in hours of research EVERY week, then it is a waste of money.
Basically you are 100% correct. "Financial Advisors" of course will tell you otherwise.
In theory – their knowledge will enable you to earn higher returns – even enough to offset their fees.
Only if you so allow it.