The Misguided Beliefs of Financial Advisors

Recorded March 13, 2018 | Time:  34:53

Juhani Linnainmaa, PhD

An examination of the common belief that conflicts of interest contribute to the high cost of financial advice reveals most advisors invest personally just as they advise their clients, engaging in frequent trading, returns chasing, selecting expensive actively managed funds, and under diversifying. Advisors’ net returns of −3% a year are similar to their clients’ net returns.