Why You Need To Fire Your Financial Advisor
ฝัง
- เผยแพร่เมื่อ 19 มิ.ย. 2024
- ► Download Your Free Copy Of The "10-Step Guide to Securing Your Family’s Financial Future.” - www.financialtortoise.com/new...
Timecodes:
0:00 - Intro
0:29 - Many Are Salespeople In Disguise
1:43 - Many Overuse Fear
2:54 - They Overcomplicate Money
3:56 - Newsletter
4:22 - They Overengineer Complex Solutions
5:28 - They Are Expensive
6:26 - Most Can't Beat the Market
7:45 - Incentives Are Misaligned
9:14 - Index Funds Take Actively Managed Funds To The Cleaners
10:55 - No One Cares More About Your Money Than You
12:18 - You Can Manage Your Own Money
------------
FAVORITE TOOLS:
► Mint Mobile - Check Out My Partner Mint Mobile, Affordable Phone Service - trymintmobile.com/financialto...
► SoFi - Checking & High-Yield Savings Account (Terms Apply) - sofi.com/tae (Affiliate Link)
► Shortform - More Than Book Summaries - shortform.com/taekim
LINKS:
► Get My Weekly Newsletters: www.financialtortoise.com/new...
► Favorite Books: www.financialtortoise.com/bes...
DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.
► Download Your Free Copy Of The "10-Step Guide to Securing Your Family’s Financial Future.” - www.financialtortoise.com/newsletter
The one time I spoke with a "Financial Advisor" he just spent an hour trying to get me to buy life insurance
life insurance makes financial advisors a ton of commission, if a financial advisor brings up life insurance just walk away. Good on you to have walked away...
A financial advisor shouldn't be an investment advisor alone. A lot of what a financial advisor does is tax planning and that alone can cover the cost of fees. Many of these concerns are also mitigated by ensuring the financial advisor is a fiduciary.
This is beyond amazing. Success has no shortcuts, there’re ways to attain it.
Most successful people always seek the knowledge and ldeas of finance professionaIs to help them create wealth and claim to attain their success without any help
To create wealth, proficiency is needed. I indulge in special packages with the Ideas of my finance professionaI and so far I’ve attain so much returns (amount is confidentiaI)
Rebecca Martin Watson is my professionaI, I found her on Bloomberg where she was featured, I looked up her name on the internet. FortunateIy I came across her and reached out to her, you can verify her yourself.
I’m amazed by this opportunity, It has rekindled the fire to my goal
that’s true, that’s why I’m giving this a shot.
There’s no limit to what you can achieve if you put your mind towards it.
Our financial advisor ignores many of my questions and instead focuses on my husband (even through I’m a high earner and investor too) He excuses this, saying that most couples he works with, the woman doesn’t work. I can’t wait to fire him.
Invest on your own
Well, the fact that you hire him in the first place tend to demonstrate that he is not far off...
@@evalangley3985 I didn’t hire him. He doesn’t manage our investments, but does planning and advisory services only. Looks like you’d get along with him well.
Have a hard time beliving that this is actually real
@@HN-db5cnit's better to just invest in an automated target date index fund. No hands on crap. Rarely do people beat that
The assets under management model is wild to me. I wonder if any advisors out there are willing to have skin in the game on your losses as well. That'd be an interesting model!
Financial advisors were more necessary in the past before all the information in the world became accessible on the Internet.
We lived this recently. Happy to report we have our 1.5% fin advisor behind us, now and moving forward. Also, for perspective, if less than 10% of managed portfolios out perform the market average (index), and then you add the fees as losses.... you have an even bigger window of "room for improvement" in your returns by doing it yourself. Agree with Tae, you can do this! Thanks Tae!
@Tae Kim - Thank you for so much for doing this video! You have laid out all of the reasons I have grown to distrust financial advisors over the last 20 years. Fee-only financial advisors seem to have become extinct in my town and all that that is left are financial product salesmen. I now invest on my own because the last time I spoke with a financial advisor about 10 years ago I wasted an hour trying to get him to show me if I was financially ready for retirement and he spent an hour trying to sell me on his services, financial products and portfolio management for the low, low annual fee of "only" 2% of my $1 million portfolio. These guys are like the financial industry version of used car salesmen.
Thank you for another great video
This video is so great! Sharing it with my email subscribers on my newsletter this week!
Great video as always Tae! Maybe you can make a video discussing the differences between a financial advisor and a custodian for a self-directed IRA?
Thank you for this video. My daughter had an internship at JP Morgan, and told me a successful doctor lost 1 million with JP Morgan and said if I went with my instinct and didn't listen to y'all I would not lost 1 million, but this fool still invest with them. Educated doesn't mean wisdom. You wouldn't believe how many wealthy people use these type of services with JP Morgan. How they find potential customers are looking into wealthy neighborhoods look up names and solicit them that's just one method. This internship was also the most miserable time of her life. She comes back home crying. We warn her about the corporate world. Yes I know young and dumb. They never listen. Yet another lesson learned in life. I told her these corporation job seems glamorous, but you are selling your soul and you will be miserable. Long story short a new career path.
Well said!
Great info 👍 👌
I agree 100%! But I think people watching videos like this already have a handle on their money somewhat. I know I watch these to tweak my knowledge further. Different TH-cam video people talk about different topics every week and sometimes a great concept comes around.
Low cost passively managed mutual funds and ETFs are a great way to make money and reduce risk.
Great informative video
Thanks, Tae. You provide common sense.
Good video. We invest without an advisor (index funds and real estate). Is there a chance we’d get getter returns with an advisor? Maybe. But I suspect that the probability of finding one who can consistently outperform the market is (a) low and (b) not worth the effort.
I couldn't agree with this sentiment more. I know the absurd amounts of money that gets passed along within the financial advising system, and it makes me frustrated and sad. I wish the sales-oriented tasks would actually be transitioned to doing something productive for society.
I'm in the process of switching back to a self managed portfolio after getting talked into using an advisor for a few years.
I ran an MER calculator to compare the 0.07 to 2.09% fees. Over 20 years, I pay 33,000 in fees with the low self managed one. $851,000 lost if I stay with the fees... It blew my mind to see the difference. They are parasites.
right and to make it worse when you retire they will still be taking that 1% and you will be drawing most likely around 4%. So basically you are giving them 25% of your income. complete total scam.
really wonder im general do financial advisors make more money than their clients, or is it the other way around.
I got fed up with our financial advisor, he never really addressed our concerns nor really answered questions. He did try to sell us useless products and put our funds into multiple funds that we did not want. Doing much better on our own using Vanguard without paying those outrageous fees.
What do u think about fundrise Tae?
What’s your take on roboadvisors?
How do I fire my adviser? And where do I go afterwards?
There are so many financial advisors who my friends meet, and then tell me to buy in because it's the next best thing.
I had an advisor tell me to take 100K loan at todays interest value plus 2% to possibly make 1-2% a year in profit. What??????? My friend signed up, but wtf...
Tae when does it make sense to have an advisor? How do I know when to sell my VTSAX or withdrawal strategies?
That is a single question that require a 10 pages answer...
In reality, you should not sell if the market is going into a recession. You should actually buy instead. You should sell when the market is a bull market. If you are over 60 and about to retire, then you should diminish your exposition to the market. There is many GIC available above 5% ATM. It also depends if you need the money.
Hi thank you so much for your help. Question what if I have a taxable account and want an early retirement or if I quit my job to live off of
Read "the simple path to wealth." It will answer all those questions.
I personally don't use a financial advisor and I would assume the majority of your viewers don't either ( based on the fact they watch personal finance videos). However, I truly believe for many individuals a good financial advisor can be a great teacher and guide for a very overwhelming field. I agree with you that most portfolios are overly complicated and yes they are expensive. But many people don't mind paying a fee, such as paying an accountant, doctor, mechanic, lawyer, or dentist. Yes it is easy to tell a 25 year old to invest $500 a month in the S&P 500 index fund but what advice do you give someone transitioning from full time work to retirement with a seven figure portfolio. How are they suppose to determine safe withdrawal rates in a bear market or someone who inherits their parent's 6, 7, or even 8 figure estate in they late 50s with no experience managing money. Just remember you only get ONE chance to transition to a smooth retirement and one or two mistakes can cost you a lifetime of savings. Great video as always Tae!
Spoken like a typical financial advisor…
If you need one, pay an hourly rate, and never pay AUM or load fees.
One of my coworkers paid a financial advisor $200 every month. I thought maybe he made them a millionaire but nope!!
Tae Kim, how would they be able to feed themselves and their family and sending their kids to college. 😂
@TaeKimFinancialTortoise - I am a new listener with a newbie question... I currently use Morgan Stanley (MS) to manage my investments which I rolled over from various 401K's, stock and IRA's with a 75% Stock 25% IRA investments at the moment. My basic question is: "How do I go about moving all of that out of MS and back under my control without getting killed with taxes?"
Any direction that you can provide either via one of your videos or a recommended book on steps to take is appreciated!
Tell MS to put your money in their low cost passively managed S&P 500 index fund or ETF. Ask them what ETFs or index funds they have that are comparable to VOO, VTI, QQQ, and SCHD.
@@PaulProsperInvestments Thank you for that guidance.
All great info but I disagree with your thoughts on AUM. If an advisor's assets drop 20% due to performance, then their paycheck falls 20% too. Any person or business will try to max asset size to increase the paycheck.
Another day, another video where the spam comments trying to scam people are allowed to run unfiltered.
Odd question but were you in Korea 15 years ago?
Find a good financial advisor
This is bonkers. I’m a financial advisor and this sounds nothing like how I conduct my business or the other advisors within my program. I believe this video is throwing a broad umbrella on top of all advisors. I don’t doubt that you have some real scumbag advisors out there. Hell there are some within my city that are like that. *cough* *cough* Edward Jones. So many stories I’ve heard about other advisors that are like those mentioned in the video. Financial advisement consists of more than the deliverance of good returns via the stock market. It’s being a pillar of support for those that aren’t well versed in navigating finances. It’s building a relationship with the other human sitting across the desk from you. It’s being a resource to someone. It’s not always the typically thought transactional interaction. If you personally feel that you have a shaky grasp on finances, then we’re here for you. If you’ve got it, then great for you! I’m glad you’re thriving. For those that don’t know and don’t have the time to fully learn, we’re there to help them. Like I said at the top of the rant, there are some pretty shitty advisors that are in it for the money. That’s why if you’re wanting one, be sure to well vet them. Find one with a true passion to help other people. Not those just wanting the money. There are some truths in the video, but it doesn’t apply to all.