On financial blogs, forums, reddit and so on, a common discussion topic is the problematic nature of financial advisory professionals being paid a commission. It creates a tremendous conflict of interest.
Less frequently discussed is the fact that many such firms are taking advantage of the advisors themselves. A significant portion of the people in that position are very recent college grads. The firm tells the potential recruit that they’ll be a respected professional, caring for their clients, and likely earning a very good income. All three promises are likely untrue, but the recruits are simply too young and too inexperienced to know any better. (I didn’t know any better. At age 21 I fell for the same pitch from Edward Jones, though quickly came to realize all was not as they’d indicated.)
Last week The Guardian published an excellent article by Niamh Rowe discussing the way young people are taken advantage of by Northwestern Mutual. I think it’s important to talk about this side of things as well. If more young people knew the realities of these jobs, fewer young people would have such inauspicious starts to their careers, and fewer people would get sold whole life policies and annuities that are entirely inappropriate for them.
- ‘Friends end up blocking you’: Northwestern Mutual sold college grads a dream job. They left in ruin and debt from Niamh Rowe
Other Recommended Reading
- When IRS Guidance Goes Wrong: How to Avoid Costly IRA Mistakes from Denise Appleby
- Are Stocks a Better Bet Than Social Security? from Jason Zweig (WSJ)
- Ben Graham and Bull Market Brains from Ben Carlson
- Financial Decision Frameworks from Adam Grossman
- A Q4 Checklist for Retirement Savers from Christine Benz
- The Astonishing Bull Market Will End One Day. Are You Ready? from Jeff Sommer (NYT)
- Protect Your Investment Portfolio from the AI Bubble from Meg Bartelt
- AI Video Slop is Everywhere, Take Our Quiz to Try and Spot It from Geoff Brumfiel and Sanidhya Sharma
Thanks for reading!
What is the Best Age to Claim Social Security?
Read the answers to this question and several other Social Security questions in my latest book:
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Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less |
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