Let’s Be Clear

I was watching YouTube the other day when an ad popped up for a financial advisory firm. Normally I skip ads, but this one caught my attention. The advisor opened by saying something that sounded reassuring:

“We only get paid if your portfolio increases in value.”

At first glance, that sounds fair—even noble. But let’s slow down and be clear about what’s really being said.

First, the market usually goes up

Historically, the stock market has been up about 7 out of every 10 years. That means most of the time, any diversified portfolio invested in the market will increase in value—regardless of who is managing it.

So when an advisor says they only get paid when your portfolio goes up, that’s not nearly as impressive as it sounds. In most years, the market does the heavy lifting for them. Collecting an ongoing assets-under-management (AUM) fee during those up years is relatively easy to justify, even if the advisor adds little value.

Second, it’s not the advisor increasing your portfolio—it’s the market

Later in the ad, the advisor said something along the lines of:

“We will guarantee that we help your portfolio increase in value.”

This is where the language becomes especially misleading.

Advisors do not control market returns. They don’t create growth. The market increases portfolio values over time—not the advisor. An advisor can choose funds, rebalance, and provide behavioral coaching, but they cannot guarantee growth without taking on risk—and no one can eliminate that risk.

When advisors imply that they are responsible for your portfolio’s growth, they’re quietly taking credit for something they don’t control.

Why this matters

Statements like these sound promising on the surface, especially to someone who is anxious about money or nearing retirement. But once you think critically, the claims fall apart.

• Most portfolios grow because markets grow.
• Most advisors get paid during those growth periods
• Guarantees are often marketing language, not reality

None of this means all advisors are bad or unnecessary. But it does mean that investors should be skeptical of polished promises that blur the line between market returns and advisor value.

The takeaway

When you hear phrases like “we only get paid when you make money” or “we’ll help guarantee growth,” don’t stop at how it sounds. Ask yourself:

1. Compared to what?
2. Who is really responsible for the return?
3. What happens in the 3 out of 10 years when markets are down?

Clear thinking—not clever marketing—is what protects your financial future. Share your thoughts below. Have you heard similar comments? Have you been mislead?