Here's the Most Unethical Thing Advisors Do

Dec 21, 2025

Exploring the darker side of financial advising, the discussion reveals how seemingly sound advice often prioritizes fees over clients' true goals. A case study illustrates how tax strategies can mislead by focusing on numbers rather than quality of life. Listeners learn the importance of aligning financial plans with personal values and desires, rather than getting lost in spreadsheets. Ultimately, good advice should support life’s objectives, ensuring that retirement is not just about saving money, but about enhancing freedom and experiences.

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INSIGHT

Spreadsheet Value Can Mislead

Advisors can use tax projections and software to make their fee look justified by showing large lifetime savings.
That math can be correct yet still miss whether the plan supports the client's real life goals.

ADVICE

Begin With Life Goals, Then Optimize

Start financial planning by defining the life you want, not by optimizing taxes first.
Connect spending, travel, generosity, and timing of retirement to the financial plan before running tax strategies.

INSIGHT

Life Changes Shrink Tax Headlines

Changing the client's spending or retirement age can materially reduce the headline tax savings an advisor shows.
The tax strategy didn't change; the life did, which made the strategy look less appealing.

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Some of the most damaging financial advice doesn’t look shady at all. It looks responsible. It looks optimized. And it looks great on a spreadsheet. This episode breaks down one of the most unethical practices James sees in financial planning, not selling high-fee products, but using projections and tax strategies to justify an advisor’s fee while ignoring the life those numbers are supposed to support.

The problem starts when advisors lead with “value creation” instead of purpose. Tax savings, Roth strategies, and optimized projections can be manipulated to look impressive, especially when spending is kept artificially low and retirement is delayed by default. The math may be correct, but the outcome can quietly cost years of freedom, experiences, and time.

Using a real case study, James shows how the same tax strategy looks wildly different once spending actually reflects the life someone wants to live. When travel, generosity, and earlier retirement enter the plan, the projected tax “value” shrinks, not because the strategy is bad, but because the goal changed. That’s the point most people miss.

This episode reframes what good advice should look like. Financial planning should start with how you want to spend your time, who you want to be with, and what matters most in your life. The tax strategy, investment strategy, and cash-flow plan exist to support that, not replace it.

Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.

The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.

Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements

Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.

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