Bad Advice From Professional Advisors

There are advisors for everything: fashion, investment, career, relationship, nutrition and spirituality, all with best intentions. And professional advisors commit an unintended mistake of being too cautious with their clients choices, and are significantly more risk-averse due to many factors.

To off-set accountability, or because of not being in the best interests of the client (due to factors such as envy), many advisors give more weightage to the negative aspects, rather than focusing on the potential benefits.

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Problem Solving

  • If a professional advisor is too risk-averse, due to being liable for potential loss, the advisee suffers from a lack of good advice.
  • If the advisor is too close to the advisee, things get personal and both parties try to compromise on the risky decisions so that the social bond is not strained or broken, leading to long-term opportunity costs.

These psychological factors contribute to conflicted and substandard advice from the professional advisors.

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