I Was Misled By My Financial Advisor

Summary

The Ramsey Show Highlights: "I Was Misled By My Financial Advisor"

Release Date: August 8, 2025
Host: Ramsey Network
Experts Featured: Dave Ramsey, Christy Wright

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Introduction

In this episode of The Ramsey Show Highlights, the focus is on the pitfalls of misleading financial advising, particularly targeting military personnel. A concerned caller shares his experience of being misled by a financial advising group, leading to significant financial losses. Hosts Dave Ramsey and Christy Wright delve deep into the issue, offering insights, advice, and actionable steps to prevent others from falling into similar traps.

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Caller’s Experience: Misleading Financial Advice

The episode opens with a caller expressing frustration over being deceived by what he believed were financial advisors. Instead, he identifies them as insurance agents who sold him a detrimental whole life insurance policy. This misadvice cost him between $15,000 to $20,000, impacting his financial stability and retirement planning.

• Caller: "I believe I was misled and taken advantage of by a financial advising group. I'm only out 15 to 20k because of their quote unquote advice. [...] It ended up being terrible."
  (00:12)

The caller emphasizes that his military background made him a target, as he feels the advisors took advantage of his service-oriented mindset.

• Caller: "I'm in the military and you know, I think they're taking advantage of military individuals."
  (00:12)

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Expert Analysis: Differentiating Financial Advisors from Insurance Agents

Dave Ramsey and Christy Wright address the caller's situation by clarifying the distinction between genuine financial advisors and insurance agents masquerading as financial experts.

• Dave Ramsey: "These are not financial advisors. These are insurance agents."
  (02:02)

They highlight that true financial advisors undergo rigorous training and licensing, unlike insurance agents who primarily sell life insurance products.

• Dave Ramsey: "When they say they're an investment advisor and they don't sell anything but life insurance products, they're lying. They're a life insurance agent."
  (08:18)

Christy Wright adds that high fees and commissions are common red flags indicating that an agent may not have the client's best interests at heart.

• Christy Wright: "High fees, high commissions, it takes a decade before that's worth anything."
  (06:35)

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Steps to Address the Issue: Taking Action Against Misleading Advisors

The hosts offer actionable advice for the caller and others in similar situations. They underscore the importance of reporting unethical practices to relevant authorities and leveraging military resources for support.

• Dave Ramsey: "The thing I would do [...] if you can raise enough cane with JAG, you can do some damage for their permission to be there, and at least you get some satisfaction with that."
  (04:08)

Dave emphasizes the role of the Judge Advocate General (JAG) in handling complaints against financial advisors on military bases, suggesting that formal complaints can lead to the removal of unethical advisors.

• Dave Ramsey: "Even if you don't do a lawsuit, I'm going to ask what the formal complaint process is [...] They have permission to be there."
  (05:05)

Furthermore, they encourage the caller to become proactive in rectifying the situation by lodging complaints and raising awareness.

• Dave Ramsey: "I'm gonna become like your worst. I'm gonna become like an activist. I'm a problem for you. I'm gonna make a hobby out of you people and just go ahead and mess with them."
  (06:35)

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Preventative Measures: Identifying and Avoiding Dishonest Advisors

To prevent falling victim to similar scams, Ramsey and Wright outline key red flags and offer advice on choosing trustworthy financial advisors.

• Dave Ramsey: "They have a license to sell insurance. [...] Don't get the two confused."
  (08:18)

• Christy Wright: "A lesson learned. Never mix your insurance and investing."
  (09:52)

They stress the importance of distinguishing between insurance products and genuine investment opportunities. True financial advisors should be transparent about their qualifications and the products they offer.

• Dave Ramsey: "If you're going to get a series 6, series 7, series 63 to be able to sell mutual funds, you're taking something akin to a CPA exam or sitting for the bar."
  (08:55)

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Key Takeaways and Conclusion

The episode concludes with empowering advice for listeners to take control of their financial futures by educating themselves and choosing trustworthy advisors.

• Dave Ramsey: "From this point forward, you can be smart with your investing. You can understand what you put your money into, where it's going and not get screwed over anymore."
  (06:47)

Listeners are encouraged to create a free EveryDollar budget, as emphasized by Dave Ramsey, to manage their finances effectively.

• Dave Ramsey: "Create your free EveryDollar budget today. The simplest way to budget for your life."
  (10:00)

Ultimately, the episode serves as a cautionary tale about the importance of due diligence in financial matters, especially for vulnerable groups like military personnel.

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Notable Quotes:

• "They're not financial advisors. These are insurance agents." — Dave Ramsey (02:02)
• "High fees, high commissions, it takes a decade before that's worth anything." — Christy Wright (06:35)
• "Never mix your insurance and investing." — Christy Wright (09:52)
• "From this point forward, you can be smart with your investing." — Dave Ramsey (06:47)

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By dissecting the caller's experience and providing clear, actionable advice, The Ramsey Show Highlights equips listeners with the knowledge to avoid financial pitfalls and secure their financial well-being.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Caller]

Hey, gentlemen. How are you all doing today?

[Dave Ramsey]

Better than we deserve. What's up?

[Caller]

Well, I can't complain too much, even though I'm going to complain a little bit here. Ultimately, I believe I was misled and taken advantage of by a financial advising group. I'm only out 15 to 20k because of their quote unquote advice. I can go into as little or as much details as you like, but I was actually listening to your show about how terrible whole life insurance policies are and made me think about the one that my financial advisors got me in. It ended up being terrible. But anyways, target audiences. Military. I'm in the military and you know, I think they're taking advantage of military individuals. But big two questions are, am I slightly overreacting? And how would you help, you know, or pursue helping?

[Dave Ramsey]

You're still active duty.

[Caller]

I am.

[Dave Ramsey]

Good. Thank you for your service. Take it to jag.

[Caller]

So I did do that. And ultimately they said, you know, yeah, they broke fiduciary responsibility, but it's not worth enough to take it to the court or anything like that.

[Christy Wright]

But you said a lot of other people too, right?

[Caller]

What's that?

[Christy Wright]

They've done this to a lot of other people.

[Caller]

Well, so here's the thing. I don't necessarily think people are realizing that they're being taken advantage of because, you know, when I first got with them, I was. I was young. I mean, I guess I still am young, but, you know, financial advisors are supposed to provide you with the best course of action.

[Dave Ramsey]

Okay, these are not. These are not financial advisors. These are insurance agents. Meet everydollar budgeters. Christy and Steve. They used to fight about money. I'm the spender.

[Caller]

I'm definitely the saver.

[Dave Ramsey]

Now that they budget with every dollar, they're on the same page. Money is definitely one thing we do.

[Caller]

Not ever fight about.

[Dave Ramsey]

Having the budget gave me the permission to spend. Knowing that the money is in each.

[Caller]

Category, it just allowed us to work together better.

[Dave Ramsey]

Now that's what we call a win win. Now we just have to pick paint colors. We can't help you with that. Every dollar, create your free account today. Okay, These are not. These are not financial advisors. These are insurance agents.

[Caller]

Ultimately, sure. Yeah. And that's not.

[Dave Ramsey]

Not ultimately. That's really all they are. They just tell people they're financial advisors.

[Christy Wright]

But really all they have a license to sell insurance.

[Dave Ramsey]

All they sell is life insurance products. That's all. They're not licensed to Sell anything else. And so.

[Christy Wright]

So the way they get around it is they can. They can get you investing, quote, unquote.

[Dave Ramsey]

Through the insurance policy, but you. You got a. You got a bad whole life policy and got ripped off with a bunch of fees, and when you cash it out, you got nothing. Is that what you're saying?

[Caller]

Yeah, and it's. I'm still struggling to cash it out because, you know, it's a terrible thing. It's made me feel like I've gotten behind, you know, setting myself up for retirement in the long run.

[Dave Ramsey]

Well, you have about 15 grand, but it's not the end of the world. You're okay. A lot of people have done a lot dumber things than you've done, and they recovered and become multimillionaires. So I'm not worried about you there. It's not a devastating blow that cannot be recovered from. It's a mere aggravation. And it pisses you off because you got lied to. And that part's fair. But it's not. It's not. Don't take it to the ultimate drama and go, oh, this is a. This is a death blow. It's not. It's not at all. It's a. It's a. It's a deep scratch. That's it. And as far as the actual math goes, that's what it is, emotionally. Yeah. Yeah. You'll be pissed on probably the rest of your life. I kind of am. So, you know, I'll go with that. Which company was.

[Caller]

Was First Command Financial advising?

[Dave Ramsey]

Yeah. Okay. The thing I would do, because we were teaching Financial Peace University for a long time in the military, and so we got to know the guys in the JAG and the guys in the. In the chaplaincy as well. We worked with both of them a lot. And JAG approves or denies or as influences the approval or denial of anyone that sells financial products to active duty actively on the base. Okay. I mean, anybody can mail anybody anything. I'm not saying that, but these guys are. They've set up shop there as if they're endorsed by the military, and they're really not. But the military just allowed them to be there. They have permission to be there. And I think if you can raise enough cane with jag, you can do some damage for their permission to be there, and at least you get some satisfaction with that.

[Caller]

That's. That's a great start.

[Dave Ramsey]

Yeah. Because somebody. I mean, there have been companies, other companies that we. That were there back in the day when we started this stuff. 20, 30 years ago that were selling crappy products on the, on the basis. And they've been thrown off, they've been thrown out. And a lot of it started with complaints to jag. So even if you don't do a lawsuit, I'm going to ask what the formal complaint process is for, for them to be removed from the base because they come in there with a military sounding name and they have a presence there where other companies don't, other companies aren't there and mutual fund companies aren't on the base. They won't let them on there and they would actually be a much better product, but they won't even let them on. And so instead we've got this company that comes in with a little bit of camo on their dadgum artwork and it looks like somehow they're approved or something or they've been endorsed by. It's a tacit endorsement. And can you tell I'm really not a fan.

[Christy Wright]

And a quick Google search, I mean, every thread and every forum just says, run away, run away, run away, run away.

[Dave Ramsey]

Yeah, if you pick it up, anything on Reddit, anything about first command is get away from them. And so I'm not telling you anything you didn't know. But yeah, I think I'm going to at least let JAG light them up, you know, just for the fun of it. But. But I think you probably just lost your money. I think you just got sold a bad product.

[Christy Wright]

High fees, high commissions, it takes a decade before that's worth anything. And so getting out like you did, it cost you, and they like it.

[Dave Ramsey]

That way, what happens is it didn't cost you as much as if you had stayed in.

[Christy Wright]

Exactly.

[Dave Ramsey]

The good news is it's in your rearview mirror. And from this point forward, you can be smart with your investing. You can understand what you put your money into, where it's going and not get screwed over anymore. But I doubt you have a case against them legally. I think Jake probably gave you good advice on that. But I would, I would just go ahead and light them up and let them know if you guys don't refund this, I'm going to, I'm just going to become like your worst. I'm going to become like an activist. I'm a problem for you. I'm gonna make a hobby out of you people and just go ahead and mess with them multiple ways and make sure you cost them at least as much as they cost you before you. Before you're through with them. That's how I would Go at it if I were in your shoes. But I don't think you got a legal case. And there's no if a mutual fund broker misbehaves, you can go the securities and Exchange Commission if they violate fiduciary. But these guys are not regulated by the SEC because they're not licensed to sell investments. They're only licensed to sell insurance.

[Christy Wright]

That should be your first and final red flag.

[Dave Ramsey]

And insurance licensing is a state level license. So if you're going to sell life insurance or whole life crap in Tennessee, you have to get a Tennessee life insurance license, then you have to go get another one in another state unless they have reciprocal with that other state. But that's not the way it works if you're going to get a. So let me tell you, I've taken all these tests just to give you guys bring it all the way full circle, okay? So when I took the life insurance exam, which I later dropped my license because I talk so much about this that I don't want to be regulated. I want to just tell people like it is. Okay? So I don't have a life insurance license now, but when I took the life insurance license in the state of Tennessee, it took me 28 minutes to take the test and I studied for it for about three or four hours. Okay? When I took the securities exam to sell securities, I went to two weekend long courses, studied for about 40 hours, and it took me five hours to take the test. It's like taking a CPA, okay? The other one's like doing a bad book report and your senior in high school. That's the difference between a life insurance exam and a securities exam. It's dramatically different. Okay? If you're going to get a series 6, series 7, series 63 to be able to sell mutual funds, you're taking something akin to a CPA exam or sitting for the bar. You've got to get your crap together. You've got to take some classes on how to take the test. You've got to study, study, study. They're going to anticipate the questions. You're going to. You really got to get ready life insurance for that matter, real estate license, freaking joke in comparison. So don't get the two confused. When they say they're an investment advisor and they don't sell anything but life insurance products, they're lying. They're a life insurance agent. And they're almost always a cash value life insurance agent in that case. Because if they sell term life, they'll just say, oh, I'LL sell term life. They don't think anything about it. They don't have to go, oh, I'm a financial advisor, which is a load of horse manure.

[Christy Wright]

A lesson learned. Never mix your insurance and investing.

[Dave Ramsey]

Hate it.

[Christy Wright]

Your first red flag. Run away. If they're trying to mix the two together.

[Dave Ramsey]

Yeah. The first command of first command is run. Create your free every dollar budget today. The simplest way to budget for your life.