Don't Fall for this Financial Advisor "Lie"

Рет қаралды 12,637

Күн бұрын

Пікірлер: 31

@i-postm4943 Ай бұрын

Great content, Eric! There are employer recordkeeper lies to watch out for as well. Had a 403(b) with former employer. On at least two occasions, I asked the insurance company about fees I was paying for this variable annuity. That topic was largely avoided. Finally was told "We have the lowest expense ratios around!" Long story short... 2 lies. 1. They failed to tell me there was the 0.9% fee that was added to each fund's expense ratio. 2. The expense ratios weren't the lowest. No wonder my account wasn't growing! Insurance company was siphoning off huge amounts over 15 years. Please take the time to read and understand the ~100-page docs which pertain to your plan and plan funds. Insurance company products are usually not investments!

@PWalsh-e5p Ай бұрын

Great content -thank you! I use fee only advisors as needed, no assets under management and no one trying to sell me insurance or other finanvial product, so no conflict of interest. Not for everyone, so if you need more comprehensive planning services, this are some useful tips fof finding a good advisor

@brianromano3104 Ай бұрын

Be careful with "fee only". From what I understand that means no commission. Assets under management qualify as fee only since they don't get a commission to sell you each product or trade.

@J-2024-v8i Ай бұрын

Another red flag is when the advisor tells you they can make your plan better without telling you or assessing where you are now, even if they already have full visibility to your current plan. I had a (free) Fidelity advisor who I showed my plan to and asked if it looked okay, and the answer was to offer me products that would make it better, but never answered the question if I would be okay with my current plan as is. The products were also offered in isolation, rather than showing me how they fit with my current strategy.

@ericgold3840 Ай бұрын

You did not meet with an advisor, you met with a salesperson. You got what you paid for.

@OneNvrKnoz Ай бұрын

I think it’s a nomenclature issue. It’s not a success/failure chance, it’s a percent chance that you will need to adjust your plan. That may be spending less or gaining income down the road if your portfolio takes an unexpected downturn. I’m okay with a 70% success as long as I understand that 30% of the time I will have to adjust my plan somehow.

@pglover19 Ай бұрын

Great point. That is how I was taught to read the P.O.S score as well. I think P.O.S is only one of the metrics in the toolbox to gauge your readiness for retirement.

@ericgold3840 Ай бұрын

Exactly, but there is more to it. You want to know *by how much* your plan will need to change. You need a sensitivity analysis

@pglover19 Ай бұрын

Please explain

@Elephantine999 Ай бұрын

1. Portly KZbin CFP I paid $1000 for advice said, "It's my fiduciary responsibility to ." (Don't buy annuities!) 2. Amiable, attractive, professional-seeming reps for a giant financial services company's advice, both for free and later at 1% annual fee, was always to move more money to that giant financial services company. State pension? Move it to us! Other 401k's? Move them to us! 1% of more money is yet more money. The late Bob Brinker used to holler "Shark Attack" on his radio show when callers would start talking about anything dicey. If you have a nest egg, someone ALWAYS wants a piece of it. Be. Very. Wary.

@alk672 Ай бұрын

For me anyone charging AUM fee is the end of the conversation. That 1% a year every year is insane. No way can it ever be worth it, sorry.

@Markazoid6041 Ай бұрын

It depends on what percentage you give them to manage, if you let them mange 10% of your savings it may be worth it to you to get a professional opinion

@joramster6001 Ай бұрын

Safeguard is well below industry standard

@davidc1961utube Ай бұрын

@@Markazoid6041 Most of the advisors I talked to have 6 figure minimums unless you are quite young and they are looking to lock you in for a long run. If 300k is 10% of your liquid portfolio, you probably already have good advisors.

@johnwasilenko170 Ай бұрын

Great Insights! Thanks for sharing 💎 when analyzing projection advice

@subversiveSubduction Ай бұрын

Off topic comment by a long-time subscriber: thank you for having good (English) closed captions because the audio sounds "hard" with a slight echo.

@MasterofZihin Ай бұрын

You don’t need a financial advisor you just need to buy the VONG etf.

@ld5714 Ай бұрын

Great video and discussion Eric. Your discussion points and suggestions will certainly be useful to your followers. Sadly, numbers can easily be manipulated to show just about anything. The average person is not very fluent or knowlegable in the financial planning arena and can easily be lead astray and it's great to have you to keep everyone on the right track. Thanks for all you do. Larry, Central Valley, Ca.

@jazzy1871 Ай бұрын

There is soooo much incentive to siphon off of peoples nest egg if you can as an advisor, and it is difficult understand if an advisor is truly helping you or them or both, you really have to become quite knowledgeable just to discern. Eric is very knowledgeable especially on the tax side ( watch all his vids if you can) of things but I have listen to many Utubers on financial planning and I am not learning much new these days just a reinforcement of what I already knew from listening to many hours on the subject. tax torpedo, RMDs, changing tax rates, ROTH conversions, SS and when to take it, etc. We had a tax advisor, until I retired, I now do my own management and feel much more comfortable, I always felt like I was being sold into something with the advisor.

@pware9643 Ай бұрын

Question 1…. Show me your ADV2.. Disclosure of all fees, commissions, kickbacks..er relationships with other firms, insurance companies etc.

@SafeguardWealthManagement Ай бұрын

To add on to this, this can be looked up at adviserinfo.sec.gov/ for every registered advisor/firm

@punisher6659 Ай бұрын

Good video

@ericgold3840 Ай бұрын

My main criticism of the 'probability of success metric' is that it does not give any insight into how much things have to change to reach desired success of probability goals. E.g., would a reduction of expenses by 5% be enough ? 10% ? 20% ? How about a change in allocation from bonds of stocks 5% ? 10% ? 20% ? That metric offered without context should raise a client's hackles. --- As an aside, a potential client should be very clear that the proposed plan improvement is inclusive of advisor fees.

@lindsaynewell6319 Ай бұрын

Useful analysis and insight. I have a great example why MC POS can be a bad metric to rely on. My current plan using Boldin has 97% POS using average rate of return. If I increase the optimistic rate of return from 8% to 15%, the POS using average RoR is reduced to 96%, which is obviously the inverse of the expected result (better returns should improve the POS). I assume it's because MC doesn't like the wider range of possible outcomes, but it just shows that POS can be a misleading metric to rely on when evaluating your plan.

@J-2024-v8i Ай бұрын

Correct. Moving from a moderately aggressive allocation to a more aggressive one can lower your POS since there are more scenarios in the MC analysis where you can have a bad market and or a bad sequence.