Nobel laureate: Everyone should have a financial adviser – InvestmentNews 12-05-13

Salient to Investors:

Nobel Laureate Robert Shiller said:

  • People make better decisions with financial advisers.
  • A lack of good financial advice was one of the problems that led to the financial crisis. Many Americans went into unsupportable debt to buy homes, which a good financial adviser would not have let them do.
  • Financial advice is particularly critical for low to moderate income families, on a par with medical advice, and should be made available to those without the resources to pay for it.
  • The government should compensate advisers who help lower-income people with financial problems.
  • Tax deduction for some investment costs subsidizes the wealthy because low-income Americans do not itemize deductions.
  • Investor overconfidence can put advisers in a tough spot because people do not like to be told they are wrong.
  • Financial advisers should pursue a second degree in psychology to better manage behavioral tendencies that lead some clients to make poor financial and investing decisions.

Read the full article at http://www.investmentnews.com/article/20131205/FREE/131209947

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Nobel Laureate Robert Shiller said:

People make better decisions with financial advisers.

A lack of good financial advice was one of the problems that led to the financial crisis. Many Americans went into unsupportable debt to buy homes, which a good financial adviser would not have let them do.

Financial advice is particularly critical for low to moderate income families, on a par with medical advice, and should be made available to those without the resources to pay for it.

The government should compensate advisers who help lower-income people with financial problems.

Tax deduction for some investment costs subsidizes the wealthy because low-income Americans do not itemize deductions.

Investor overconfidence can put advisers in a tough spot because people do not like to be told they are wrong.

Financial advisers should pursue a second degree in psychology to better manage behavioral tendencies that lead some clients to make poor financial and investing decisions.