Lies, Damned Lies, and Advisor Payouts

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“There are three kinds of lies: lies, damned lies, and statistics.”

This quotation is often attributed to Mark Twain, who allegedly attributed it to former British Prime Minister Benjamin Disraeli, who historians claim never said it.

Regardless of the origin of the phrase, it says that statistics mislead.

I could rewrite the quote: “There are three kinds of lies: lies, damned lies, and advisor payouts.”

I am not implying that brokerage firms that pay their advisors via a “payout” are lying, but there is no shortage of misleading when it comes to payouts.