Home >  The Paladin Principles >Quick Facts
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Have a question? Quick Facts may have the answer. if you don't find an answer to your question.
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| Q: What is the primary message in Paladin's book Who's Watching Your Money? |
| Investors biggest risk is not investing in the stock market, its advisors who provide bad advice. Bad advice in down markets can be devastating. For example, the trillions of dollars that were lost by investors during 2000-2002. |
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| Q: Who is the author of Who's Watching Your Money? |
| Jack Waymire is the founder of the Paladin Registry and the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor. |
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| Q: Why does the author believe bad advice is so prevalent? |
| There are 650,000 advisors and at least 80% of them sell financial and insurance products for commissions. They are part of a massive, cheap distribution system that Wall Street companies have put in place to sell thousands of investment products. |
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| Q: Why don't advisors disclose credentials? |
| Bad advisors and the companies that employ or license them have a lot to hide. Consequently, the industry spends hundreds of millions of dollars a year on lobbyists who fight any form of regulation that would require full disclosure. They have been very effective, so advisors don't have to disclose credentials, compliance records, or business practices. It's up to investors to protect their own interests. |
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| Q: Why does Wall Street field so many bad advisors? |
| To maximize profits. Wall Street needs a massive, low cost distribution system that can sell the thousands of investment products it has produced. The industry also has an exceptionally high turnover rate so a lot of advisors are new to the business. A significant percentage of advisors are inexperienced and poorly trained because they don't have to know much to sell most investment products. |
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| Q: What's the difference between a sales rep and a quality advisor? |
| The role of the sale representative is to sell investment products for companies that employ or license them. The role of the advisor is to help investors achieve their financial goals. |
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| Q: Who is going to protect investors from bad advisors? |
| Financial service companies and advisors have too much to gain protecting the status quo. Regulators are ineffective. Investors must learn to protect their financial interests from bad advisors. |
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| Q: Why did the author write this book? |
| He read about numerous Wall Street conflicts of interest that cost investors trillions during 2000-2002. He knew bad advisors had sold those bad products to trusting investors. He also knew the devastating impact bad advice, bad investment products, and down markets. His book was published in December, 2003. |
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| Q: How is Who's Watching Your Money? connected to the Paladin Registry? |
| The Principles described in Who's Watching Your Money? are the foundation of rules that drive the Paladin Registry. |
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| Q: What has the press said about the book? |
| Paul Farrell, JD, PhD, a CBSMarketwatch columnist called it the perfect answer for investors who were looking for a new advisor. |
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