Clark Howard's Financial Advisor Warning

[@thomasdunn8214]

A short video with a long valuable list of financial advice. Thanks Clark!

[@July.4.1776]

My fathers favorite saying if everyone knew so much about making money they wouldn’t need mine to invest. 🤔

[@hkk3656]

Problems here with DA Davidson. My mistake was thinking the financial advisor was my friend. BIG MISTAKE ON MY PART. Salesman, and never forget it. I lost thousands.

[@randy74989]

Here it is: Learn and manage your own portfolio(s). Hire a Registered Investment Advisor (RIA) to "plan" your investments and that have a methodology that can produce an "Investment Policy Statement" (IPS). An IPS will provide a snapshot of where you are currently and how to deploy your money in lifelong investments, including a "Margin of Safety" stash of cash. I personally invest alongside Uncle Warren by owning BYDDF and OXY in my long-term portfolio. I believe in the Three Bucket Retirement Strategy. If you are retired, you should research the strategy, consider using it to manage your money (DIY) or question your RIA, recommended or Financial Advisor, not recommended, as to why they have not deployed the strategy for you. A Financial Advisor or Investment Advisor DOES NOT place your interest in front of theirs. I know because I was a glorified Stockbroker in the mid-70s and it was just sell, sell, and more sell. I quickly got out of that business.

[@rpm3605]

Mr. Howard, it just shows that “If it sounds to good to be true, it probably isn’t.” Is not a cliche.

[@curiosity2314]

Clark I have been with you a very long time but why are you using that head set from Radio 1980's? Time to go BT or something similar. All in fun, your advice is always spot on.

[@Vee2711]

My dads been a financial adviser for 30 years, running his own business. I’ve been a financial adviser for a year and a half. He’s never, ever cheated a client. This story being told is about a small percentage of advisers.

[@jimmason8502]

Very true. Also, there are more people screwing up their own financial affairs thinking they're saving money on financial advice than there are bad advisors cheating clients. Find a good advisor you can trust and work with them.

[@chrisforker7487]

It may be a small percentage, but they destroy a large number of lives.

[@edema.3418]

The best advisers are fee only fiduciary advisers.

[@retired8484]

No, this is the fact about 99% of "advisors."

[@andrewparnes2043]

Cryto has no intrinsic value, an illusion. In the UK Financial advisors market an illusion and the client suffers. The concept that the Advisor acts in the best interest of the client is ignored. Fees matter!

[@DoubleDJ86]

And I’m about to hire a financial advisor in Collier County this info give me more confidence on my meeting with them tomorrow

[@darrickharris5534]

A good financial plan would include protection (insurance) and investment (growth). First step is to understand who you are dealing with and what they do. Insurance products come with guarantees while investment products traditionally do not. Insurance is a contractual agreement which is why it has a suitability standard. The contract is between the individual and insurance companies. Likewise an investment is mostly speculative and is driven by the market. No guarantees so you need a higher standard (fiduciary) because the product carries more risk. Financial literacy should be taught in school. Study first, there are things that insurance can do that investments cannot and vice versa. I would be leery of anyone who doesn’t have balance when speaking of both. It all depends on your goals. Both insurance and investment are highly regulated.

[@jerel2119]

Good video! I wonder if you’ve heard of nectarine which is a fee based service that matches a person with a fiduciary to plan long-term investment strategy?

[@DoubleDJ86]

Clark when we moving back to SoCal I miss the surf . I want to buy property back in Orange County but I’m not seeing the values dropping. I guess I’ll wait until fall after the home buying season, or should I give up on that pipe dream no pun intended

[@tek6423]

The steak dinner comment right at the end….. it says so much. I strongly agree that you should manage your own investments. This involves educating yourself and paying attention to what is going on in the financial world. Of course you’ll need to reach out and pay for advice every now and then. My buddy took on a financial advisor and gave him full authority to handle his money. The advisor gets about1.25% of his total action. That is a ton of money. But he does get the steak dinner.

[@andrewmalati8676]

Why don’t you make a video explaining why it is financial advisors don’t do hourly fees?

[@jimmason8502]

Cause it's not an hourly fee job.

[@kaohsiung99]

For a fiduciary, it is. That's exactly how they get paid. @@jimmason8502

[@bradstein8776]

I've been through 9 advisors in 20 years. I'm still looking for a good, honest one.

[@barbaras676]

My first “investment advisor” for my 403b in 2013 was actually in the insurance business and put me in a high-fee (3.5-5%) product with a guaranteed lifetime income rider (GLIR) and performed terribly! It also had a $5k buyout 😢 When I finally got wise and went with a fiduciary I bought it out and finally started making money - ‘till this last year, of course. Lost over 14% of the portfolio but am still glad I changed. That was a valuable le$$on for sure!

[@ToOpen6seven]

Wow 😮

[@darrickharris5534]

Just wondering, was this a variable annuity or variable life insurance? If so, bare minimum you have to carry a series 6 to sell that product. Although, it is typically sold by insurance companies it is actually classified as an investment product. The only other insurance product that remotely plays the market is an IUL. IULs generally have a zero floor which mean you won’t lose money in the market but if there is no return then you still the cost of insurance that still must be paid. It is definitely unfortunate that you lost money in the product that you were in. But not enough information to fully understand the circumstances. There are some scenarios where certain insurance does well even if the market doesn’t. As well as there are ways to hedge against loss in investment products during market turns. Normally that will depend on whether your funds are self-managed or professionally managed. Also, your risk tolerance and how diversified your portfolio is.

[@Anthony-zw1qb]

My company charges a $6 yearly fee and 0.11% fee on the total assets in our 401k plan. Should I stick with that or go heavy in my ira ? I do 100% index funds . Thank you!

[@marietaylor5174]

Thank you Team Clark.

[@__BERSERKER__]

But the “fiduciaries” in the financial advisor industry do the same thing. Its just play on words. Once they were required to be fiduciaries their business model fundamentally DID NOT change!

[@Tony-dx3eo]

This! You hit the nail on the head.... be careful out there everyone.

[@randy74989]

Exactly, if you must hire an RIA then hire an hourly fee RIA to put together an investment plan or an Investment Policy Statement for you so that you can manage (DIY) your portfolio(s) at Fidelity or Schwab, the only two investment firms I would deal with for my money. I'm currently with TD Ameritrade; however they are being merged into Schwab currently in 2023.

[@darrickharris5534]

There are bad players in every industry. Even banks, which people blindly trust, have been under scrutiny because of how they mishandled the housing market before the recession in 2008. Get with someone who is trustworthy. Make sure that person is willing to thoroughly explain what you are getting in to and why they feel it fits your need.

[@peterwebster8162]

@@randy74989 not everyone is comfortable being a “DIY” investor. But for those who are… both platforms you suggested are solid.

[@randy74989]

@@peterwebster8162 For clarity, I transferred all of my accounts to Fidelity recently. I just had a feeling about Schwab that I did not like. And Fidelity is the number 1 online Brokerage. Nothing personal just business. Best Online Brokerage Accounts and Trading Platforms of 2023: Best Overall: Fidelity Investments. Best Broker for ETFs: Fidelity Investments. Best Broker for Low Costs: Fidelity Investments. Best Broker for Beginners: TD Ameritrade. Best Broker for Mobile: TD Ameritrade. Best Broker for Advanced Traders: Interactive Brokers.

[@racerx6]

If anybody tells you that they make a living as an investor, and then asks you to invest your money with them, is probably a fraud. Ask them if you can see their income tax returns. I bet they won't let you see them, because it won't show that their income is derived from investments.

[@conservativehippie9736]

Wait...weren't you on HLN yrs ago? Pardon me as I just found you on KZbin yet the voice. If it's you I watched and paid attention ❤️‍🔥

[@kenpope5798]

I have never had a problem but that being said they seem to be in the news a lot and being fined, so should I be concerned about Wells Fargo?

[@JFreeUNC]

Maybe not from a financial strength standpoint, and they are a great bank for a checking account, but that is the only account I’d have with them. Savings should be with an online back paying 3-4 percent, like Marcus Bank. WF charges crazy high investment fees. You’d be better off with paying an advisor at Fidelity, Vanguard or Schwaab.

[@retired8484]

Stay FAR away from WF

[@rtyler1869]

If you are an Australian, just beware that crap like this gets caught very easily, and anyone who calls themselves a Financial Planner / Adviser must be registered with ASIC.

[@rickdunn3883]

"CFP" is not what it is advertised to be. Fiduciary standard is a joke. Buyer beware. Only one person will protect your interest-that is you. Remember: "Money Doesn't Grow on Fees".

[@johnbrown1851]

When it comes to financial advisors, 1.5%=33%. If your safe withdrawal rate is 4.5% and you pay the advisor 1.5%, you are giving the advisor 33% of your withdrawal year after year.

[@jimmason8502]

No, if your rate of return is 4.5% and you are giving the advisor 1.5% then you are giving away 33% of your return.

[@johnbrown1851]

@@jimmason8502 that's true as well even for someone who is not yet in the distribution phase.

[@mandys6525]

My parents had a nasty shark of an advisor they used for years. Not only did he dupe them then, he was terribly crafty in taking advantage of them when they were in a care home. He has had and recently has quite a few "listings" on Broker Check since the 1980s through currently. He is one big 🤥 to his clients. If a financial advisor smells like a rat, they most likely are.

[@garbo8962]

Two years after I retired I moved my 403P where I was happy getting a guaranteed 3,2% interest rate to my credit union that is always rated one of the best in our state. Told them that I did not want a penny in the stock market and only would only transfer my money if they could match what I had. First year it lost about 1.5% and doing worst this year so going to move it. We will have to finally start withdrawing money from it in a few months. Feel like choking lying piece of crap who sold us down the river.

[@joyridle]

Been there.

[@jimmason8502]

3.2% is not even keeping pace with inflation, so you're losing money every year.

[@chrisforker7487]

You’re probably invested in fixed income, and yes you should have lost money. Stocks get a bad rap. You need a balanced portfolio that meets your risk tolerance. There’s no guarantee on ANYTHING with investments, period. 3.2% or whatever, there’s zero guarantee.

[@bshef3424]

THANKS CLARK - ding ding ding BINGO!.. ...avg person is 100% brainwashed, thinking investing/savings is waaaaaaaaay too complicated to even consider diy - RUBBISH -

[@hanshoffmeyer8258]

FTX guaranteed 15% returns

[@July.4.1776]

😬😬

[@rdbeaz]

10% Better than Dave R.

[@jimmason8502]

So you listen to a guy dispensing financial advice and warnings about advisors who made his money in a deregulated travel industry business in the 80s, selling overpriced cruises to an unsuspecting public. Ok.

[@ripvanrevs]

How was your overpriced cruise?

[@ellerellerek52]

Bitcoin is the future

[@chevman46]

The 401k rippoff.... My 401k manager would not ... release my money ....I was trying to roll it over to another ...investment..... I had to call the fbi .... And report her ... After which ... she did release money ... But ... she had no .... intention of giving me my money back...I was really scared ...