By Anonymous*

Editor's Note: Apparently, the author is not alone in his dissatisfaction with advisors. In a recent survey, Prince & Associates found that 86% of high net worth investors would recommend avoiding their advisors' firms and 81% would "take money away" from their advisors. More than half have considered firing their advisors. While these numbers might sound more like an exaggerated reaction to the current chaos in the financial markets, WME believes it does point to an emerging trend. Investors are upset at how their accounts and relationships are being handled.

I'm angry. I'm angry at my financial advisors and I'm angry at myself.

Last November, I called my lead advisor to reduce my exposure to the stock market. It didn't make sense that the market was hitting record highs while the economy was softening and potentially heading into a recession. Even friends that were business owners were seeing signs of weakness.

My advisor talked me out of making a move. He reminded me that I'm in the market for the long term and not a market timer. He also explained that his firm's team of economists didn't think the US would enter a recession - that the strength of exports was more than making up for softness in housing. Stay the course, he insisted, and I listened.

So here I am 11 months later and my equity investment accounts are down over 35%.

When confronted about his poor performance, my advisor tried deflecting accountability. "These were unforeseen circumstances that nobody anticipated," he explained. He blamed the government, greedy bank CEOs--even his firm's own sub advisors ("they disappointed us both"). Never once did he accept accountability.

When the market went up, he took full credit for his acumen. Now he's passing the blame.

"Heads He Wins, Tails I lose"

What really ticked me off was to open an account statement the other day to see the regular quarterly management fee charged to my account. This advisor has made hundreds of thousands of dollars over the past 10 years based primarily on market exposure. Now that it's down, he'll only reap his "normal" fees without the performance kicker. And I'm out millions of hard-earned dollars.

Had he been proactive and taken some accountability, or better yet, reduced his fees as a gesture that he is willing to share some of my pain, I might have stayed, but it has become all too clear to me that this relationship is fundamentally flawed. The old model where "heads he wins, tails I lose" just won't work anymore. I've finally woken up. Hopefully you have too.

*The author, an affluent investor, wished to remain anonymous to avoid being deluged by advisor proposals.