Informative article written by Peter Finch of The Wall Street Journal.
The financial adviser’s pitch, delivered over lunch, included a discussion of asset allocation and “lots of different investment vehicles.” Hart Merriam came away thinking this talkative fellow could help him take his portfolio to the next level.
“It made sense to me,” says Mr. Merriam, a 57-year-old General Electric sales manager who lives in Raleigh, N.C.
But a few months into their relationship, the adviser started pitching him things he wanted nothing to do with, including commission-heavy whole-life insurance policies and annuities. Once Mr. Merriam made it clear he wasn’t interested, he says, his adviser all but ignored him.
“It was frustrating, because I wanted good advice,” he says. “What I got seemed more in his interest than in mine.”
Mr. Merriam recently enlisted a new adviser who charges a flat annual fee.