An Interview with a Reformed Broker

Photo by Amy Hirschi on Unsplash

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According to FINRA, there are more than 629,000 registered representatives in the U.S. Many are affiliated with large brokerage firms. These firms have massive marketing muscle that dwarfs most independent RIAs.

A meaningful number of these representatives will not turn their back on stock picking, market timing or trying to select outperforming, actively managed, mutual funds. They are just as unlikely to focus on asset allocation and limit their recommendations to low management fee index funds, ETFs and passively managed funds.

But what if they did?

What follows is an interview I conducted with an experienced financial advisor at a major brokerage firm. His firm wishes him to remain anonymous.

I met him about a year ago when he approached my coaching firm to inquire about our services. At that time, I explained I couldn’t help him because I limited my practice to “evidence-based” advisors. Not to be deterred, he started a dialogue with me, which he recounted in the following interview. Our interview was conducted through written questions and answers. I shortened some of his responses for clarity, but didn’t otherwise edit them.