Don’t Let the Kentucky Derby Pick Your Advisor
Horse racing can be a lucrative business. This year’s Kentucky Derby winner will bring home $1.86 million. The first Saturday in May is the only time America (outside of Kentucky) pays attention to horse racing. This might be stretched out to several weeks if the same horse wins the Preakness Stakes, setting the table for a possible Triple Crown at the Belmont Stakes. “The most exciting two minutes in sports” garners intense buzz, but is quickly forgotten. Too many investors adopt the same strategy for choosing financial advisors. The Horse Race The investor allocates a little money across three or four potential advisors. Whoever has the highest returns at the end of 6 months or a year gets to manage all of the investor’s assets. In the biz, we call this a horse race. The investor thinks they are choosing a financial advisor, but is this really the way to…
