What’s up, everyone? Today we’re answering the question: Are financial advisors stealing your money?
Disclosure: This is my opinion. Seek your own financial advice.
Initially, financial advisors will want to know your age and what your financial goals are (building wealth, saving, overcoming debt, etc.).
They want to know your asset allocation and your liquidity.
Younger clients generally allocate their money in stocks, and older ones tend to have a higher allocation in bonds and annuities.
Stocks are riskier and are more volatile, whereas bonds are perceived as less risky and less volatile.
So, Should I Stock Pick?
Not necessarily. Personally, I invest 70% of my stock portfolio in secure ETFs.
The other 30% is money I can experiment with.
Advisors are Changing
Our world has transitioned into “robo advising.”
This means that apps, websites, and other software can now provide us with financial advice.
Generally, financial advisors charge a 1 to 2% fee annually on your AuM.
That may not seem like a lot, but compound interest tells us otherwise.
Robo advisors still charge a fee, but it is much less.
Like Lincoln said in my video…
“I believe that financial literacy is something that can be learned.”Lincoln Archibald
Ultimately, you just need to understand your asset allocations and your liquidity needs.
“So, what do I do?”
If you open up an account at any investment bank, they will ask you the same questions and give you some financial targets and goals.
And that’s all you need!
Liquidity & Conclusion
Let’s say you retire with $1M.
The 4% rule states that if you take out 4% every year for retirement, you’ll be able to retain your principle.
However, that’s only $40K a year. If you need more, retire with $2M instead.
Lincoln also added…
“I certainly think you need tax advisors/tax strategists in your life.”Lincoln Archibald
It’s my personal opinion, but I think you can save a lot of money by managing your own money!
I think financial advisors are stealing your money, but don’t panic; it is more simple than you think.
That’s it for today!
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.