What you should NOT hear from a financial advisor

In an increasingly complex financial environment, many are turning to a personal financial advisor with the expectation of receiving objective advice, strategic planning and protection of their capital. But not everyone who presents themselves as an expert is acting in the client’s best interests. That’s why the ability to recognize warning signs in an advisor’s behavior and statements is key to building trust and avoiding poor financial decisions.

We present five statements you should never hear from a personal financial advisor – not because they sound bad, but because they hide deep problems.

1. “I guarantee you high returns without any risk.”

This statement contradicts the very essence of investment theory. In the financial world, there is no high return without corresponding risk. Market returns are directly related to risk tolerance, time horizon and portfolio structure.

Why it’s a problem:

Such a statement is either an expression of incompetence or deliberate manipulation. It may be an indicator of a Ponzi scheme or the sale of structured products with hidden fees and terms.

2. “Invest now – this is a unique opportunity that is expiring today.”

The use of an artificially created sense of urgency is a classic technique in aggressive selling. It aims to bypass rational consideration and critical thinking.

Why it’s a problem:

Financial decisions should be the result of well-thought-out analyses, not emotional reactions. A serious advisor will never pressure his or her client into immediate action without sufficient information and time for reflection.

3. “This is the best solution – all my clients do it.”

Financial solutions are not “one size fits all”. What works for one person may be completely inappropriate for another, even at similar incomes or ages.

Why it’s a problem:

This approach betrays a lack of personalized service. It is often an indicator of a mass sale of the same product for which the consultant receives high commissions. And the true role of the financial advisor is to analyze the client’s needs, goals and risk profile – not to sell the same thing to everyone.

4. “Commissions are not your concern.”

On the contrary, commissions are absolutely your concern. The way the consultant is compensated has a significant impact on the recommendations you will receive.

Why it’s a problem:

If you don’t know how your consultant is paid and by whom, you can’t assess whether their recommendations are independent or motivated by personal gain. Financial advice needs to be transparent – both about fees and potential conflicts of interest.

5. “This is an entirely passive investment.”

This statement creates a misleading sense of security and lack of commitment. In reality, almost any investment requires at least a basic understanding, informed choices, and periodic monitoring. Even low-risk instruments carry the potential for loss or are tied to conditions that the client must understand.

Why it’s a problem:

The claim is often used to reduce critical thinking and make it easier to sell complex products, expensive funds or long-term insurance with an investment component. It creates the illusion of ‘automatic income’ without the need for understanding, but this leaves the client vulnerable to inappropriate solutions, high fees and limited liquidity. Any investment, ‘passive’ or not, must be fully transparent as to the risk, return and control the client retains.

A personal financial advisor is not just an intermediary – they are a strategic ally in managing your long-term financial journey. Trust should be built on a foundation of transparency, professionalism and commitment to your best interests.

TPA Bulgaria

+359 2 981 66 45/46/47

office@tpa-group.bg

128, G.S. Rakovski str, floor 2

1000 Sofia