If fianancial advisors are so good at investing money and making you rich why don't they retire?

Question

If fianancial advisors are so good at investing money and making you rich why don't they retire?

Answer 1

Because they love their jobs just like Madonna or Clint Eastwood.

I love my job too. (I am a Portfolio Manager)

Answer 2

Why doesn't every millionaire retire?  Movie star?  Basketball player?  Football player?  Oprah?

Answer 3

To make money to retire they have to make money for others--it is how financial advisors make money

The $ucce$$ful plain enjoy the chase

The $ucce$$ful ones could

Think like this: if you need a brain surgeon, wouldn't you want the best?  Why doesn't s/he retire having become the best?

Answer 4

Silly question.   Maybe they arent rich?  Maybe they like what they are doing?  Maybe they have made bad decisions in their advice?  

In short, they have a job just like anyone else.  I know people who made a lot of money selling businesses.  They still work.  Why sit on your butt all day when you are capable and willing to work?

Answer 5

It's called residual income.  For the investments that are placed within mutual funds, the financial advisor gets what is called a "trail".  Meaning, they receive some of the management fees for compensation each and every month.  Dependant on the balance of the mutual fund book, this could lead to tens of thousands, with old money.  Therefore, the pressure to obtain new money is non-existant.

If you ask me, I don't believe a financial advisor is the way to go.  I think that people should be like Suze Ormann.  Throw out blanket statements, half-truths and then back it up with $600.00 dvds, tapes and books.  The sweetest thing about there position is that get this "there is no fiduciary responsibility.  So they could be totally "wrong", and the reader or believer could lose everything.  And there is nothing legally they can do to Suze.

I would like to see the faces of the people she told to payoff there mortgages as quickly as possible.  Then the person gets laid off, or comes across a huge financial liability, and doesn't have the liquid cash to keep there heads above water.  Best of all.  They paid off the mortgage on a $500,000 home, that is now worth half that.

It would have been more beneficial for these people to "pee in a fan", then listen to someone that spouts off a 4 minute solution, to a delicate financial concern.

Just my thought.

Oh and for the record.  You never want to pay your home off as quickly as possible because of the tax benefit you receive from it.  With the deduction that having a mortgage provides, and having dependants.  95% of america is in the lowest tax bracket they will ever, yes I mean ever been there lives.  That is unless your happy being retired, and making SSN throughout.

It's not only the growth of the monies, but the short-term and long-term tax implications that you should be concerned about.

I could go on for days.

Answer 6

They are just sales people, so they are poor.

Answer 7

The company  we use , the head honcho can afford to retire.  he was home one month and his wife threatened to lock him in the basement if he didn't go back to work,  just a workaholic.

Answer 8

Some do retire. But here's a nasty little secret. Firms hire kids with no experience in balancing a checkbook let alone handling investments. This is done to get at the 'natural market'...the kid's friends and family.

95% of 'financial advisors' hurt their clients.

http://www.saveyournestegg.com/scam.html

Answer 9

Some do.  You need to have money to invest it.

Some Financial Investors have gone through a training program that teaches them how to help you, but it is still a job based on commission.