Investment Management – Red Carpet Retirement™

Don’t Be Fooled By This Dirty Little Secret (Ep. 15)

By Red-Carpet-Retirement | October 17, 2023

When it comes to financial advisory, finding the right balance between innovation and caution is crucial.

With the rise of data and technology, risk analysis software has become a popular tool for guiding investment strategies.

But should we rely on this software? What are the risks of doing so?

In this episode, Adam Scott explores the world of risk analysis software in the financial advisory industry. He uncovers the misuse of the software by some advisors who manipulate them to present past performance and cherry-pick investments, emphasizing the importance of combining it with wisdom and knowledge.

Adam discusses:

The frustrations and limitations of risk analysis software used in investment strategies
How advisors can cherry-pick investments using risk analysis software to show better returns and lower risk to potential clients
A clear example of how the risk analysis software can provide misleading information, missing important market events
How stress tests can be used to compare portfolio performance during the financial crisis and other events
The story of Long-Term Capital, a hedge fund that relied on mathematical models and efficient market theory but ultimately failed
And more!

Connect with Adam Scott:

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

10 Important Questions To Ask Your Financial Advisor (Ep. 7)

By Red-Carpet-Retirement | February 14, 2023

Finding a financial advisor can be difficult. Just because they are likable doesn’t mean they will be excellent at taking care of you. How can you tell the difference?

In this episode, Adam shares 10 of the most important questions everyone should ask their financial advisor, especially if they are in the interview process, to find out if the financial advisor will actually help them, how they’ll help, or if the advisor will put their own interests first.

Adam discusses:

Why it’s important to ask if the advisor has any customer complaints or abuses on their record, and how to find the answer before asking them
The different fee structures and how they can determine if an advisor will put your needs first
Why outsourcing investment management matters
Why your advisor should specialize in your niche
And more

Resources: