Investing Blog Roundup: Northwestern Mutual Recruits Sold a “Dream Job.” Reality Was Very Different.

On financial blogs, forums, reddit and so on, a common discussion topic is the problematic nature of financial advisory professionals being paid a commission. It creates a tremendous conflict of interest.

Less frequently discussed is the fact that many such firms are taking advantage of the advisors themselves. A significant portion of the people in that position are very recent college grads. The firm tells the potential recruit that they’ll be a respected professional, caring for their clients, and likely earning a very good income. All three promises are likely untrue, but the recruits are simply too young and too inexperienced to know any better. (I didn’t know any better. At age 21 I fell for the same pitch from Edward Jones, though quickly came to realize all was not as they’d indicated.)

Last week The Guardian published an excellent article by Niamh Rowe discussing the way young people are taken advantage of by Northwestern Mutual. I think it’s important to talk about this side of things as well. If more young people knew the realities of these jobs, fewer young people would have such inauspicious starts to their careers, and fewer people would get sold whole life policies and annuities that are entirely inappropriate for them.