By law your financial advisor must ask you the survey question "on a scale from one to five how would you rate your risk aversion?". Based on your answer to this question the financial advisor is legally bound to discuss with you only specific investments that are deemed appropriate for your risk tolerance.
If this is the only question your advisor is discussing with you they are doing as little as they possibly may to keep you as a client.
When people design the way they do business to barely meet the legal standards for transparency and communication this is not a sign of low effort, it is the essence of low effort advice.
If an advisor recommends a specific investment and can not answer the question "why will this investment beat all other investments during the time I wish to invest?" to the point that you are table pounding certain about the answer.
The advisor has not provided advice. The advisor has provided tips.
Tips are for service. Tips are not a service to anyone.
Do your due diligence. Drill for the hard to know stuff. Don't take anyones word for the truth. Observe how words and actions match.
The investments companies make would be the actions to compare to those words. When they don't match. Why?
When they do match. Is there more to come?
These are questions we must hold near to defend our wealth.
Arm yourself. Information is -
-David Caro-Greene
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