Advisors' misguided beliefs drive poor client outcomes
The host discussed the concept that financial advisors often give poor advice not out of malice, but because they hold the same misguided financial beliefs as their clients.
The argument
The host cited a 2021 Journal of Finance study showing that advisors make the same investment mistakes in their personal accounts - such as chasing returns, over-trading, and preferring expensive active funds - as they do in client accounts, even after leaving the industry.
Hear it yourself
"His 2021 paper, he's a co author of the misguided beliefs financial advisors in the journal of finance. They find in a Canadian sample actually, they don't specify what firm or whether it was a bank or not."
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