What was your last experience like shopping for a car? Some people upgrade their vehicles every few years; others hang onto their cars for as long as they can and ride them into the ground before they have to pay out for a replacement. But, sooner or later, we’ve all got to do it. Sooner or later, we’ve all got to get a new car—and buying a car means interacting with a salesperson…
Now, I’m sure there are a great deal of salespeople in the car business who are good, honest people just trying to make a living. But, as I’m sure you are aware, the reputation the industry often has is not exactly one of putting the customers’ interests first. Why is this the case? Well, customers tend to go shopping for a car based on what would meet their needs and their preferences. If they have a lot of kids, they may need a minivan. If they do a lot of outdoor work, they may need a pick-up truck. If they like showing off to other drivers, they may be in the market for a convertible. These kinds of preferences have to do with what the customer wants.
The problem is that what the customer wants does not always align with what the salesperson has. The salesperson isn’t in the business of giving the customer advice; the salesperson is in the business of moving product—of unloading inventory. The customer bases decisions on his or her preferences; however, the salesperson offers advice based on his or her availability. If there is no convertible available, for example, the salesperson may still find himself trying to convince the customer shopping for one that she really wants a truck—because that just happens to be what the salesperson has on the lot. Due to this conflict of goals, it can be very difficult for the salesperson to truly act in the customer’s best interest.
When you enter the world of investing, it’s a little like shopping for a car. Sure, you could go straight to the salesperson and ask for advice, but the salesperson’s advice is almost always going to be biased in his own favor. Brokers are the salespeople of investing. They get paid commissions for selling products. Of course, they may try to convince you that they have your best interests in mind, because they want to gain your trust. But, due to the nature of their work, it’s almost impossible for them to put your goals above theirs.
However, there are places besides dealerships you could go to find information about a car you might be interested in. For example, you could look at neutral automotive websites or read buyer’s guides. Using a coach is like using these resources when you’re going to buy a car. They get paid, not based on what particular product you buy, but rather based on the quality of the information they provide to you in making your own decision.
That’s why you need a coach for your investing, and not a broker. You need someone who is really in the right position to have your best interests in mind. If you are thinking about hiring a coach, feel free to reach out to us for a complimentary consultation. We want to help you find the portfolio that’s going to meet your needs and preferences, because that’s exactly what we’re in the business to do.