In the comments of my previous post I mentioned financial advisors can charge more if their clients are uninformed. Well, this article on Warren Buffet hypocrisy (but profits) echo the same wealth transfer associated with being uninformed:
Customers said in interviews that dealers misled them to take on unaffordable loans, with tactics including broken promises, last-minute changes to loan terms and unexplained fees that inflate loan balances. Such loans are, by definition, predatory.
“They’re going to assume the client is unsophisticated, and they’re right,” said Felix Harris, a housing counselor with the non-profit Knoxville Area Urban League.
Even if you think you are more sophisticated than the clients referenced in the article, please recognize that those trying to extract wealth from you devise increasingly sophisticated schemes. You must be aware. You must be mindful. A friend of mine once said: “proceed as if everyone is trying to f*** you.” That may be a little harsh, but the reality is real estate agents, mortgage brokers, insurance salespeople, financial advisors, car sealsepeole, etc. are all trying to make money off of you, your money, and your family’s land.
Stay sharp my friends…