Financial experts are a key element in the mutual fund industry. If they’re expert and unbiased, they’re worth every penny they earn. Unfortunately, the mutual fund industry works against finding such a person. Here’s what to do.

Conventional wisdom says that your broker should have your best interest first in mind and should know more than you do. But when a financial advisor or broker’s compensation is connected to which funds pay the most fees, how could they be completely objective? They can no longer be unbiased. They no longer put the client’s interests first. This is systemic. This hurts you as an investor.

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It doesn’t help that investors often hurt themselves by having this childlike naiveté about how they work with financial people. The investor can have the trust of a child. I mean, the amount of trust they have with this stranger called a financial advisor is mind boggling.

And the financial advisor has to talk good, look good, look successful, be successful, form relationships easily, act like they have the client’s best interest at heart. For the most part, that’s what an investment advisor truly believes. It’s part of what creates the bad performance.

It doesn’t get any better when the financial advisor is embedded in the community. In fact, it’s worse. The advisor is a friend to many people, but the things that lead to investment failure are still at work. We may like and trust this financial advisor, but they are still what they are: mostly biased and not objective.

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