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This is no different than letting a newly graduated medical student with a fresh MD behind his name perform heart surgery. Or, hiring a new MBA grad to Chief Financial Officer of a Fortune 500 company. Yet
financial services industry allows someone to get a license (after a fairly short course) and to immediately start making incredibly important and far reaching financial decisions for anyone he or she can sell their service to.
This is a worrisome trend in this industry. A CPA friend confirmed that he has been approached many times by firms wanting him to offer investment services.
Why? It’s easy money! Accountants and tax professionals have a great business base. They are in a unique position of trust, because of information their clients disclose to them. Whether they are employed by a company or they maintain an individual practice, there is probably no other person (other than your spouse) who knows as many intimate details of your financial life as your accountant ax preparer.
To abuse this trust for personal gain—no matter how noble motive may appear—is a total conflict of interest and a huge betrayal.
The bear market of 2000 has shown that investing must be a disciplined endeavor. Even most professionals have failed to recognize this. What busy accountant, in middle of tax season, can put necessary time and attention to a volatile investment market that may require action at a moment's notice?
As for Bob, he’s still with his accountant, and in same investments that brought his portfolio down. He’s hoping for a miracle recovery. As of this writing, stock market is engaged in something of an upswing and Bob, I'm sure, is getting his hopes up that he will recover some of his losses. However, I shudder to think that this rally may come to an end and bear market resumes. Where will Bob be then?
At 58 years old Bob is still playing Russian roulette with his retirement. He's apparently unable to make a decision to move to someone who has ability to make sense of market trends and discipline to follow signals they communicate. This is a decision that will have a profound affect on his financial future—and will determine whether his story has a happy or sad ending.
Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped countless people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: www.successful-investment.com.
