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Submitted by: Puthan(VJ) Vijayan
Puthan(VJ) Vijayan is the Principal member of PMV Investment Advisors, LLC. The firm is a Registered Investment Advisor. VJ is a Certified Estate Planner and Registered Financial Consultant, with over 15 years of planning and investment experience.
Sacramento, Calif., April 9,2007 - Recent Paladin Registry research has produced new data that describes several key facts that financial advisors deliberately withhold from consumers who rely on their knowledge and services to achieve their financial goals.
Having access to this information is critical for consumers because advisors influence or control financial decisions that impact their quality of life,especially during retirement years. Selecting a competent, ethical professional is tough enough, but it can be a near impossible task if consumers don't have accurate, complete data they can use to make informed decisions.
For example, all advisors tell consumers they are financial experts who put consumers' interest first. The problem is they aren't telling the truth at least 85% of the time. What consumers are hearing is a refined sales pitch that is designed to win their trust and assets. The information they really need to hear is deliberately left out because they might not buy what the advisors are selling. Following are a few examples of information that is frequently misrepresented, omitted, or hidden by financial advisors.
SALES REPRESENTATIVES
Advisors don't want consumers to know their role is to sell them investment and insurance products.So their business cards say they are planners,advisors,and consultants,because sounding more professional makes it easier to their products. They know consumers would be very uncomfortable if their "financial Advisors" or "financial planners" were really sales representatives who had no vested interest in helping them achieve their long-term fiancial goals.
ADVISOR COMPETENCE
Advisors who are new to the financial services industry do not want consumers to know
they have little or no investment experience.There are four reasons why inexperienced
advisors can sell investment products and advice.First, the financial services industry
has no education or experience requirements.Second, companies hire representatives
who are older so they appear to have experience.Third,advisors use their personalities
to get consumers to like them because they know people trust people they like so they don't question advisor competence.And fourth,most consumers don't know the right questions to ask to determine advisor competence.They would probably be very surprised to learn their nice,40 year old advisors were selling pharmaceutical products three months ago.
PREFERRED PRODUCTS
Advisors don't want consumers to know they have quotas that require them to sell company or preferred products even if the investments are inferior to alternative product. In the past,advisors received extra compensation for selling proprietory or preferred products,but that practice has been banned. Now, companies threaten them with the loss of their health and disability insurance and even their pension benefits if they fail to sell the mix of products that maximize company profits.
TOTAL COMPENSATION
Advisors who work for commissions don't want consumers to know how much money
they make from their investment recommendations.Since the payments come from
third parties such as broker/dealers and product companies,consumers don't see this
information unless they ask for it.And then the advisor may or may not tell them the truth.
Why hide the amount of money they make?An advisor may spend two or three hours
with a consumer and make thousands of dollars of commission compensation.
Consumers would question the services they received to justify the payments of such
large sums of money.
VERBAL SALES PRESENTATION
Advisors don't want consumers to know how important written documentation is for
protecting their financial interests.They want consumers to hire them based on flowery
sales literature,their rapport-building personalities,and verbal presentations.The pitches
tell consumers what they want to hear,for example high investment returns and low risk,
and give reasons for buying whatever the advisors are selling.Verbal information
benefit advisors because there is no written record of what is said to win consumer
trust and assets.That makes sales pitches dangerous because they are easy to deny
later when it's the consumer's word against the advisors.
CROSS-SELLING
Consumers' banks,credit unions,and car insurance agents want to sell them investment
products. Their goal is to leverage their relationship with consumers by selling additional products. The more revenue streams they generate, the more profitable their relationship is with them. What they don't want consumers to know is they treat financial services like any another bank or insurance product. However, providing checking account services is not the same as recommending investment for consumers IRAs-assets they will depend on for 20 or 30 years of retirement.
ABOUT PALADIN REGISTRY INC.
Founded in 2003, the Paladin Registry provides three public services that are free to
consumers.Awareness and Education programs,Advisor Search Services,and Advisor
Documentation Services.Paladin is an information services company,not a financial
services company,and is 100% owned by key employees who are active in the company.
For more information,visit Paladin Registry at http://www.paladinregistry.com
CONTACT
Jack Waymire
Paladin Registry Inc.,
916 253 3334
jack@paladinregistry.com
ABOUT PMV INVESTMENT ADVISORS,LLC
Founded in 2002,PMV Investment Advisors,LLC provides wealth management services that help the client fulfill their financial and non financial objectives, which help them live the lifestyle they have been accustomed to and expect. In the process maximize their income and capital gains with minimum income,capital gain and estate tax consequences. Puthan(VJ) Vijayan is the Principal in the firm,with over fifteen years delivering financial planning and advising services. VJ's credentials include Certified Estate Planner, Registered Financial Consultant, Master in Business Administration. Registered as a Registered Investment Advisor with the State of Wisconsin, PMV Investment Advisors LLC, is awarded the FIVE STAR rating as a memeber of the Paladin Registry.
PMV Investment Advisors,LLC delivers CASH MANAGEMENT,RISK MANAGEMENT,
INVESTMENT MANAGEMENT,RETIREMENT MANAGEMENT AND DISTRIBUTION
MANAGEMENT, AND ESTATE PLAN MANAGEMENT AND IN THE TRANSFER OF WEALTH.
We are a FIDUCIARY company,that is we put our clients first before our interest, and our compensation/fees can be structured with retainer, hourly fees, fixed fee, percentage of assets under management. We have been in the greater Milwaukee area for the last five years, and prior, VJ has been with various companies in the area,varying from insurance/regional and national broker dealers companies to regional banks to CPA firms.
CONTACT
Puthan(VJ) Vijayan CEP RFC MBA
PMV INVESTMENT ADVISORS,LLC
262 754 1672
vjvijayan@gmail.com
www.pmvinvestmentadvisors.com
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