Healthcare has changed considerably over the past twenty years. Doctors were taken off the pedestal, shown to be human and capable of making mistakes. It became acceptable and even encouraged to ask for second opinions, and the volume of medical information available on the web made it easier and easier to participate in major decisions that affect our health.
- Our doctors go to school for up to 9 years. Financial Advisors only need nominal certification.
- Our doctors have a fiduciary responsibility to prove they act in our best interests. Financial Advisors do not.
- Our doctors are paid for by the medical system, not the drug companies. Most Financial Advisors are paid for by the makers of the financial products they sell you.
- Drugs undergo strict clinical trials to prove that the benefits of taking them outweigh the side effects they may incur. Financial products do not.
Why is the financial industry still shrouded in mystique and why do people blindly follow the advice of the Financial Industry?
Primarily it’s fear and greed, the two twin pillars of Finance.
- Fear of us asking questions and looking stupid;
- Greed of the Financial Industry who make more money without the costs and overheads of effective regulation;
- Fear of our ability to learn seemingly complex new things;
- Greed of the Financial Industry who exist solely to make money from our wealth and our lack of knowledge;
- Fear of inaction and missing out on huge returns for little risk,
Effective regulations will likely never come so it’s time to take the Financial Industry off it’s self appointed pedestal and take joint responsibility in shaping our financial future. To do that we can learn a lot from the healthcare industry.