No index fund salesman will ever arrive at your door to pitch you

The man picture above will not arrive at your door to sell you an index fund......

I was meeting with a client at their home and the doorbell rang. It was a financial adviser. They were going door to door in search of new clients. The moment I learned that he was an adviser, I knew his firm would not utilize index funds. I ended up being right.

How could I be so sure he was peddling high priced products??? His firm was well known and his title was financial 'adviser'. Surely that should qualify him as objective. I wish.......

There is not a lot of money in peddling low cost index funds. Index funds are most often used by advisers who wish to be compensated for their advice, not by the sale of the product. When I recommend someone buys an index fund from Vanguard, I make nothing from Vanguard or any other provider for that matter. The product provider doesn't even know I exist as the client makes the purchase direct.

Low cost, objective financial advisers will not advertise at the upcoming Superbowl, nor will they have an ad on your favorite tv show. You will probably have to find them on your own. Sadly, many people's financial education is informed by the commercials they watch on TV. Oak trees, large whales and strong looking rocks ultimately dictate which route to go. This is not good.

So how is someone going to find an objective, affordable financial adviser? Look in the mirror tomorrow and hire yourself. Start your financial education journey and hire a guide like Robert Hunt to ensure you don't get hurt along the way.