Are Financial Advisors Worth It? (The Truth Finally Exposed!)

Personal finance is personal, and so are financial advisors. We walk you through everything you need to know about financial advisors: their cost, their value, when you should consider hiring one - and when you shouldn’t.
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[@CartmellBuri]

Abby Joseph Cohen hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost a million bucks in my portfolio.

[@KimJimCastro]

Same here, I got to know about Abby Joseph Cohen Services on here in 2020. Since then I've paid off 160,000 USD of debt. Now I'm working on building an emergency fund. I didn't even have a savings account three years ago.

[@BruceWoolems]

I know this FA, Abby Joseph Cohen Services but only by her reputation. I have been trying to get in contact since I watched her interview on WSJ last month

[@BruceWoolems]

How can i reach her, if you don't mind me asking?

[@CartmellBuri]

​@@BruceWoolems Well her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@CartmellBuri]

I love people with their initial doubts about the prospects of financial advisors like Abby Joseph Cohen in business/markets today. Gives me more time to get ahead while they stew in their own pity and doubts as they childishly complain about those spreading the word

[@Lancelot0311]

My financial advisor Helped convince my fiance that we can actually retire with dignity and how we can do it. She did not believe the numbers I provided her until he showed her the calculations and graphs in a meeting we had. Now we are two young motivated individuals working for a decent retirement. Absolutely worth having an Advisor in my situation

[@stealthmode6005]

As a financial advisor, thank you for an overall balanced show on financial advisors. Just like a lot of things in life, there are good and bad apples. The secret is finding an advisor who cares about their client's and is knowledgeable about their needs and matches those needs with the right solutions. I remember the main goal in my practice. I need to help my clients succeed first, then, and only then, will I prosper.

[@ChristopherKilrain]

Agreed, I'm a planner/ advisor as well and feel the same way.

[@nrivera567]

@@ChristopherKilrain for someone about to retire in the next 3 yrs, should we move from a advisor to a planner? Especially for someone with a few mill and 3 properties?? Thanks

[@coderlifer4870]

That's just BS. How come financial advisors ask to pay upfront once you sign up? (payment is normally done per quarter and the first quarter is paid upfront.) Your client's asset has not earned any money yet and yet you want to get paid immediately. Where is this "clients succeed first" before you can prosper? How come even if the market is down and your client is losing money, you still get paid 1% of his assets?

[@ChristopherKilrain]

@@nrivera567 it depends. Some advisors are competent in the same work but most aren't. If all they do is manage investments for you and haven't looked into how to make things more efficient or how they can better your circumstances as a whole then it's worth taking a meeting at least.

[@ChristopherKilrain]

@@coderlifer4870 our firm gets paid after the first month so your money has had some time to grow and we have had to work. Granted we do our billing monthly. Each firm has their own billing methods/ timing

[@gdash4832]

the fact that 75 percent of BO and Brain clients are not stressed about money vs 71% of Americans might have something to do with Bo and Brain only take clients with a minimum net worth of 750 thousand dollars. I laughed about that otherwise great episode

[@bigmo6948]

Brian and Bo charge 1.25% of assets under managment (lower over 1 million). For me, that is $11,250 a year. I have 9 years to retirement - $11,250 a year compounded for 9 years (assuming 5% returns) = $141,500 - Side note: their "Holistic" service is for advisory services. You still need to pay for an accountant and legal services.

[@coderlifer4870]

Yep, don't listen to these two clowns. Fees based on the percent of assets under management are a scam. They should explain why an auto mechanic should not charge them the cost of car repair based on the amount of their gross income.

[@zoner__]

I haven’t found an advisor yet that wants to do the tax part.

[@coderlifer4870]

@@zoner__ That's because that's real hard work compared to 1% of AUM that they will just put in more or less S&P500 type index funds and leave it alone like a wise investor should do long term.

[@bgoode652]

Their best sales pitch yet.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@sheilaflory2541]

Yeah, I didn’t expect them to tell me I didn’t need one. But so far I’m doing great. Could use a tax advisor but haven’t had any luck finding one of them near me. Should probably contact Fidelity and see what they suggest

[@coderlifer4870]

Yep, don't listen to these two clowns. Fees based on the percent of assets under management are a scam. They should explain why an auto mechanic should not charge them the cost of car repair based on the amount of their gross income.

[@johnsomers3618]

I have been watching them for 4 years now. 32 in the middle of the messy middle with a 1 year old and this show has added so much value to managing our money and becoming the mutants we are today. My wife at 28 did a career shift to go to law school and we have met many younger 20 year olds through her school. We are mom and dad of the friends group and I push anyone who listens to their show. All in all - keep of the great work bought the book and glad I could give you a little something for all the advice

[@johnsomers3618]

Up*

[@SilverCpa]

No. Next question. -Bo

[@sheilaflory2541]

Part of me wants the Money Guys to make me a case study and review my info to see if I need an advisor!

[@sixstringsdaddy2477]

The Vanguard study is ludicrous and includes people that don't understand you need to invest your IRA and not leave it in cash. You need a lot of complexity before even Abound can add 2% compared to DIY. Remember that you pay the fee even when your account loses value. Yes the advisor makes less, but they still make money even when you're losing money.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@bribradt3450]

​​@@AlexanderNeis Literally every company in sp500 is in tsm. They are technically different in terms of overall exposure, but basically the same in terms of performance over any time period. Being that they're cap weighted, beyond the first 500 companies in tsm it's like 10ths of a percent invested in each company and decreases the further down you go. I prefer TSM because why not have the extra exposure, and then use other funds to tilt in a specific direction (like growth or value) Personally I do 65 % vti, 15 % avuv(small cap value) and 20 in vxus

[@Rob-me8vp]

Don’t necessarily disagree, but for me with a $2m portfolio I’d rather pay the $20k and have a trusted advisor who I can ask advice of and give me direction. I don’t have the time to be on top of all of mt finances. So in my eyes he just has to make $20k more or lose $20 less than me and then he is worth it.

[@joshuaharbman147]

Did Brian just tease a second book

[@1apilot2]

I like the idea of fee-only advisors. Personally, I feel like I can manage my own investing because I have self-taught myself on the topic. However, I think the anyone can benefit by a fee-only advisor looking under the hood, maybe semi-annually. But those who take fees over the long-term through load funds, etc, really turn me off. And I think the advisors often have a "dog in the hunt" in some cases. IE I know one advisor who was reluctant to take money out of stocks, even though their client needed to take money out for a business investment. This investment wouldn't help the advisor because they would be giving up their commission through the load funds. I appreciate the fact that you guys operate as fee-only advisors.

[@FunStuffBuddy]

“Fee only” are often AUM setups FYI….

[@1apilot2]

@@FunStuffBuddy yes, understand. To be clear, I like fee-only minus an AUM

[@FunStuffBuddy]

@@1apilot2that’s fair

[@OneCheapEric]

Imagine having 5 million in an sp500 index fund or total market index fund and paying someone 47500 a year (billed quarterly) to keep it in there.

[@FunStuffBuddy]

EXACTLY. It’s STILL not needed. “Finding complexity” should never happen!

[@ericdouglas9380]

Imagine not watching a video and assuming this is the situation they say to hire an advisor.....

[@ericdouglas9380]

​@FunStuffBuddy oh buddy ignorance is bliss until it isn't. How about if you want to retire early and planning how much you need to contribute into each of the 3 buckets to support that in the most efficient tax manner, are backdoor Roths a good decision, does a 529 plan make sense. Just a couple examples for thought. Cheers

[@FunStuffBuddy]

@@ericdouglas9380honestly all fairly simple strategies you can google. Or ask your CPA vs spending 6-7 figures in fees for relatively little time/help. Main thing is to save and give it time to compound more than the polishing anyway

[@OneCheapEric]

@@ericdouglas9380 🤷‍♀️

[@kesslerrb]

I recently fired my advisor after 12 years. I think she did a decent job for us…but, our returns were mediocre and we were spread across too many funds. After doing a lot more learning on my own and testing some investments outside of her management I decided that the cost and complexity were no longer worth it. I will likely seek out an advisor that is fee for service (not AUM) to bounce my ideas off in the future to make sure I’m still on track.

[@herrabanani]

The problem I can see with financial advisors is that often times what you should be doing is incredibly simple, but they are worried that if they don't make their job seem complex that you won't think you need them do they add complexity where it isn't needed to obvescate what they do

[@kesslerrb]

Agreed! Rick Ferri has his “core four” site which helps folks find an asset allocation plan that fits their needs in just a few funds. He tells a story about helping financial advisors who want to accomplish a similar result but ask for more funds because they need it to be more “complicated.” I’ve “simplified” my IRAs but am still stuck with a dozen different ETFs in my taxable portfolio because I don’t want to incur the capital gains taxes just yet.

[@taylorjackson7908]

I fired my advisor. 3% a quarter of assets managed for a meeting once a year to talk about financial goals was a waste. It was a cookie cutter plan and they never moved my money unless forced to. Much better off and more satisfied after moving it to Vanguard.

[@Oaky]

Broadly: no

[@laundrygoddess4]

The older you get, the more money you have, the more you would benefit from an advisor. Retirement account meltdown strategies are not something the average person gets the complex details about

[@Lolatyou332]

The only issue is really the AUM model.. No matter how much you make if you are paying a percentage of your net worth every year it's going to be really hard to justify it.. You'd really have to be at a point your effectively going to have to withdrawal at least 100k-200k / year and not have any clue about what your doing to get any benefit for AUM as well as have many income streams and possible owning a business. 1% a year on a 3 mill$ portfolio is 30,000$, I just have trouble seeing how you can afford to pay 30k$ a year when likely you would only be able to pull out 120-150k$/year. That's like 20-25% of your yearly expenses POST TAX! I don't even believe you can deduct those expenses either to prevent paying the extra tax (which would be money from your highest marginal tax bracket and actually cost MORE than 1%) .

[@rayzerot]

​@@Lolatyou332 This exactly

[@ChristopherKilrain]

@@Lolatyou332 If we are looking at a $3 million dollar client, they are generally paying quite a bit less than 1%. Also, advisor fees can be deductible and a good advisor will show you how. Finally, with good planning you can often take more than 4% from your assets which means that it often benefits those with less money to figure out retirement. If you "only" have $500k saved but need more than $20k a year in income from your assets, I would suggest talking to an advisor as they very well could have a solution.

[@martinyeager7948]

I have received lots of great free advice from your show and I bought your book. I have always been a DIY saver and investor. But, I believe your numbers about the value of an advisor are correct and think many people would benefit from the right Investment Advisor with a holistic approach. Fortunately for me I have enjoyed my DIY role and had the ability to save and hold diversified investments.

[@VanGoghGlobetrotter]

This was very informative! Thank you! 😊

[@AndrewOjeda]

This was a great deep dive! Thanks for sharing!

[@ElykSmith]

As a AUM Advisor Trainee, I really appreciate this breakdown

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@kennethwers]

I have found most financial advisors put One in a cookie cutter plan. (Life style fund or retirement date plan)

[@Lolatyou332]

Yeah, investing in funds is not difficult. Really the only benefit IMO is tax planning but even then I just find it hard how AUM financial advisors can make more money for clients than they take. I feel like you could be pretty reckless on withdrawing while being non-tax advantaged and still come out ahead in most scenarios tax wise unless you just literally decide to Roth convert everything as soon as retirement starts.

[@ChristopherKilrain]

@@Lolatyou332 there are plenty of studies out there from companies like Vanguard that find the opposite to be true. According to Vanguard a good advisor will earn you about 3.5% more year over year than a DIY person. Some of it is returns but much of it is tied to other aspects.

[@Cormin]

Brian IS an open book. 😂 "When I started writing my FIRST book" Can't wait!

[@pcash4088]

I think the fee only “project based” model are the best. The % assets under management I don’t think so much. But I enjoy learning a lot about personal finance. I’m sure many with large balances, Especially if someone inherits a lot (high six figs and up). I think a better than assets under management would be a fixed yearly fee like a subscription. My humble opinion. I think these guys are very knowledgeable and are sincere about helping folks achieve financial abundance.

[@chuckhemard]

A little disappointed that Brian didn't include PFS designation on a CPA -my wife is a PFS trained CPA trying to start offering fee only holistic panning (retainer based fee structure I believe?) at her accounting firm. This little known credential is more of a one stop person who can make sure you are on track financially and look at short and long term tax planning or issues related to retirement.

[@chuckhemard]

oh, by the way PFS is Personal Financial Specialist and Brian Preston has this credential as well.

[@denisebeach6832]

Wow I’ve been listing to these guys for awhile, I truly believe they are acting in your best interest 😊Wish they were in NJ

[@user-bb1qc6qc3b]

I took a statistics class in college. I hated the class. The one thing i did learn is that you can make a study say any result that you desire. You control the data, just find a reason to throw out certain criteria and it could change the result drastically. I dont trust a financial instution doing a study to justify to justify their employees. 3%-4% more, i find extremely hard to believe. Follow the money!

[@sheilaflory2541]

Looking forward to this! I don’t know if this is a growing field or if I’m just more aware but there are advisers everywhere. No one cares as much about my money as I do. My best advisors were my parents - who were of the start early and live below your means philosophy.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@OffgridApartment]

Like all things in personal finance, the answer is it depends. -Bo But it’s true. Some people do need an advisor and others don’t. Great episode. Would love to see a case study on the impacts of the benefits of an advisor over time in portfolio value with specifics focusing on tax loss/gain harvesting, rebalancing, etc.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@johnc4789]

If you want to prove that you are worth 25% of the suggested distribution from an investigation, show that you do better than a target-date fund for most people.

[@haoweizhang968]

If you live off 4 percent a yr, you pay 1 percent for your advisor. You paid 5 percent a yr. It would be higher probability to run out of money earlier.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.

[@joelplatt2651]

Well now we know Brian watches Critical Drinker 😂

[@ericnelius9062]

*Modern Audiences*

[@knowen87]

Did anyone hear Brian say "When I wrote my first book"? Does this mean he's got another one on the way. The next title should be "DONT BE A FOO L"

[@andys242424]

Best, most helpful episode, yet. 👍

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@tylersanders2388]

I’m not a big fan of financial advisors unless it is from the perspective of educating people. I absolutely hate financial advisors that just invest for people with no explanation. The idea should be that you know exactly what your money is doing. Financial advisors are good for people with a wide variety of assets with complex tax implications.

[@bgr007]

You guys are trying too hard to push AUM. I agree on all of your information before but this episode feels like a push. Your firm charges 1.25 percent to start? I would totally focus on do it yourself and pay a fee only advisor closer to retirement. Math doesn’t lie.

[@Zorlig]

That extra .25% is their profit margin. I wonder though how much of the fees a person pays go to their own services and how much is spent on new client acquisition.

[@sheilaflory2541]

Yeah, this episode was pretty much just an advertisement.

[@coderlifer4870]

Yes, it's obvious they are pushing for fees on AUM advisors. That's how financial advisors can make the most money at the huge expense of the client. If you watch videos explaining how bad fees-on-AUM advisors are, you'll see plenty of comments telling their sad stories about how they got duped. You won't read anything saying they were happy with it.

[@BiggMo]

It is hard to get my head around the expense for my IRA/Roth. At 1.25%, that’s over $10,000 a year. That’s 12% of my gross income. Also, that’s more than my allowable annual contribution of 8k. I know Brian calls people like me a troll, I’m just asking hard questions. It’s difficult to quantify the value

[@statmango]

You probably don't have enough investable assets to be worth the fee, either for you or for the advisor. Perhaps a robo advisor would be of more benefit?

[@BiggMo]

@@statmango I’m at almost a million in just my IRA and Roth

[@coderlifer4870]

Yep, don't listen to these two clowns. Fees based on the percent of assets under management are a scam. They should explain why an auto mechanic should not charge them the cost of car repair based on the amount of their gross income.

[@statmango]

@@coderlifer4870 Perhaps, but when I've had more expensive cars, auto mechanics tend to charge a lot more for basic things like tires and oil changes (2x in some cases). Makes me want to go back to an economy car.

[@statmango]

@@BiggMo I guess it comes down to what you are looking for. Portfolio help? Estate planning? Tax optimization? If an advisor just does something you can and enjoy doing yourself, save the money. But if you can't or don't want to, then outsource it. Some people outsource child care, some outsource schooling, some outsource meal preparation. I think traditional financial advisors are of benefit to a small portion of the population. Many more could benefit from someone who prevents them from spending too much, but I don't know if those exist. Good luck in your decision!

[@Onlypoints_]

usually love their data but some of the stuff in this video is a bit of a stretch - i.e. psychological benefits of an advisor - i get what they're trying to say but the data is likely showing correlation and not causation. ppl with CFPs might have higher quality of life and financial confidence/satisfaction simply bc they have more money and are more on top of their finances than the average american, not bc they have an advisor....

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@ld5714]

When you are younger I would say No. Once you are successful and have a lot of pieces and complexity in your mix, you should definitely give it consideration. It's not for everyone for sure and individual mileage will vary. There are many approaches and fees available based on your needs. I have used an adviser for the past 2 years and feel they are certaily worth it.

[@conggao5565]

If your goal for investment only, you don’t need one.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@missgui4400]

I think if you have a multi million dollar assets and only 5% of it is in the stock market, then a financial advisor would be worth it so you wouldn’t have to worry about that 5% investment.

[@coderlifer4870]

1% fee of Asset Under Management is a scam. Like your example, I am an auto mechanic and you asked me to fix your car. Explain to me why the cost of repair should not depend on the amount of your gross income. Please answer that.

[@xzygy]

I was happy with my financial advisor until I learned enough to begin to disagree. Consider that you’re going to retire in less than 4%/year, and you’re going to wait till age 65 to start. You’re going to give someone 1%/year, so 25% of your future retirement income, and they retire today. That’s absolutely wild. How much money would someone have to give you, to sit down and read a few books and watch a KZbin channel now and then?

[@michaelpantano3324]

Not all financial advisors are scoundrels. If your financial advisor isnt a fudiciary, they are a scoundrel. They still might be if they are a fudiciary, so do your due dilligence.

[@dlewis483]

Concierge advisors put a lot of the money with their exclusive products

[@ChristopherKilrain]

If they are an AUM advisor then this isn't the case.

[@burkles4456]

Oof Kevin been real quiet after this one….. 😂

[@Zorlig]

How you an advisor possibly get 3-4% better return than the S&P 500 over time?

[@FunStuffBuddy]

It was a little odd but They seemed to indicate it was 3-4% more “value” in what they provide but not dollars and cents. It doesn’t really add up though and some weird assumptions are being made on that one

[@username6333]

By saving you money on taxes

[@Zorlig]

@@FunStuffBuddy yeah it seems to be making the assumption that everyone without an advisor is in CDs

[@jus10_mar10]

Proof that Brian watches the Critical Drinker!

[@getinthespace7715]

If I want a "financial advisor" I'll just put my money in a managed mutual fund... Same thing. Less cost. There are some great performing funds out there that have less than 0.7% expense ratios and no other fees that have returned about 20% average over ranges from 5-20 years. What can a financial advisor do for me that I cannot do for myself?.. just charge me money.

[@burkles4456]

If I want my oil changed I’ll just do it myself. I wonder why jiffy lube still exists.

[@getinthespace7715]

@@burkles4456, yeah. Some people just don't know better, some people don't care. I can change the oil in my truck for about $46. High quality oil and filter. My buddy pays almost $90. To get his oil changed with whatever the oil place uses because he doesn't want to deal with it. It's a different mentality.

[@TheNutButter_]

I don’t think you watched the video

[@arh1234]

Not the same thing. What you invest in should be easy (index funds). Tax strategy, retirement drawdown, legacy structure - an advisor may help.

[@rayzerot]

​@@burkles4456Jiffy Lube still exists because some people are physically incapable of changing their own oil. Nevermind all the other reasons. Helps to think outside of your own personal experiences

[@Milleh]

Ensure your advisor has a CFP designation and you’ll most likely be in good hands

[@delayedgratification581]

Brian has plenty of things he wants to sell...

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@bpbjork]

Worth it when you want to retire.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@kiditsmaug]

I really love your advice and have been listening to you for a while now.... but I don't think you're chart WITH a % AUM advisor is by any means realistic. This is assuming that someone's advisor is outperforming the S&P500 consistently over 25 years, which statistically, is close to a 0% chance of happening.

[@rayzerot]

Maybe the extra performance is from tax savings?

[@captaintrebek]

They review a breakdown of the studies suggesting a 3-4% improvement in returns with a financial advisor, and the largest benefit was protection against behavioral errors. Speculation, daytrading, panic-selling/panic-buying are strategies that are going to drastically underperform an always-be-buying-low-cost-diversified-index-funds strategy. Honestly - this video probably gives an accurate representation of what value an advisor could bring to *the average investor*, but not what value an advisor could bring to *the average Money Guy Show watcher*.

[@SantaBarbaraAlberto]

Are financial advisors worth it? Depends! If you are not financially educated or seeking convenience, the answer is NO! No one cares about your money as much as you do.

[@drumsac3004]

Only when ur close to retirement. Otherwise…it’s a waste of money.

[@FunStuffBuddy]

Which is also when they want you ($500k-$1mill minimum) since they make the most money 🤣. They don’t want you when you don’t have much anyway, lol

[@GunGrave0]

They would be good for educational purposes in younger folks for every 5 year review in case they don’t know how to plan for financial goals

[@FunStuffBuddy]

@@GunGrave0if you can find someone, sure. But they won’t make any money so most won’t want to bother. Also you truly only need 2-4 funds and that’s it. Set it and forget it. It’s that simple.

[@getinthespace7715]

Even then it's a waste of money.

[@drumsac3004]

@@getinthespace7715 I would probably just pay someone hourly to rebalance and come up with plan for retirement withdrawals. I would NEVER pay a percentage of my investments or anything ridiculous like that. Hell no.

[@Nerdificationing]

0:11 his because sounds like a parrot - BE-CAWWWS

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both

[@bluecollarbudgets]

Considering only ~35% of people use financial advisors, clearly if there is any value most feel it is not worth it. Every advisor I see on KZbin that goes through their financial planning process starts with ~$1M of investable assets. They know full well that the median (better indicator of most people than averages that are skewed high) is around ~$85K of investable assets. However, FA usually get paid based on AUM, so they literally don't want to help the median client! They are there to serve those with enough investable assets so the FA can live in a 4000 sq ft house and drive a Tesla, Audi, MB, or BMW. Same with realtors not wanting to have homes sell for lower price because it directly impacts their paychecks, even though its best for both parties. FA aren't necessarily interested in helping those with lower balances bc they won't make enough money.

[@FunStuffBuddy]

100% exactly

[@TheNutButter_]

Tell me you didn’t watch the video without telling me you didn’t watch the video

[@Zombiebeast1995]

Brian and Bo have put almost 20 years of free work into this lol. They are helping the median person

[@FunStuffBuddy]

@@Zombiebeast1995great point, agreed. I think they are fantastic and they are genuinely good people. I still would never recommend paying 1+% AUM though. I have a feeling Brian hated doing this video

[@Zombiebeast1995]

@@FunStuffBuddy I agree that it is a hefty amount of money, but some people just can’t/don’t want to think about their finances that much to be efficient. Then there’s also the people that may have many moving parts, and again, don’t want to dedicate the time to figuring it out. I am not sure if I’ll use an advisor or not yet. We are 29 and I think I would not think about using one unless I got to around $5M or more, or for some specific advice when I’m nearing retirement.

[@CT-O]

Lol aren't vanguard and Russell providers of financial advisory services? I'm sure Marlboro would try to sell me on the health benefits of smoking

[@LouisMorganxb3]

The US dollar is losing value due to inflation, while other currencies are gaining strength, creating uncertainty. Nonetheless, many people remain confident in the Dollar's perceived safety. I'm concerned that my 420K retirement funds may lose value, therefore I'm looking for other financial stability.

[@OscarOwenn]

With my stressful career, I don't have time for investment analysis. For seven years, a fiduciary has managed my portfolio, responding to market situations, ensuring for effective navigation and informed decisions. Consider taking a similar plan of action.

[@AlexClarkcompany]

Do you mind if I ask you to recommend the coach you employed? It seems you've figured it all out.

[@OscarOwenn]

My CFA, 'Leah Foster Alderman', is a well known figure in her field. I recommend looking into her qualifications further. She has extensive knowledge and is a treasure trove for anyone seeking to manage the financial markets.

[@AlexClarkcompany]

Regards. her handler was simple to locate and appears to be extremely capable and adaptable. We scheduled a phone conversation.

[@AlexanderNeis]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.

[@JoshuaRyan-mm6st]

Hallelujah!!! I’m blessed and favored with $60,000 every week! Now I can afford anything and support the work of God and the church. For Your glory, LORD! HALLELUJAH!

[@AmandaNicole-yw5wl]

Oh really? Tell me more! Always interested in hearing stories of successes.

[@JoshuaRyan-mm6st]

This is what Ana Graciela Blackwelder does, she has changed my life.

[@JoshuaRyan-mm6st]

Enthralled by tales of triumph, I share with you the marvels Ana Graciela Blackwelder has wrought in my life. Through her expertise, I have ascended to heights previously unattainable. With earnings from her counsel, I have secured a new abode and vehicle on American soil, and most profoundly, I have financed my son’s essential surgery. Praise be to God, shalom indeed.

[@JenniferLynn-kk7tk]

I know Ana Graciela Blackwelder, and I have also had success...

[@JenniferLynn-kk7tk]

Absolutely! I have heard stories of people who started with little or no knowledge but managed to emerge victorious thanks to Ana Graciela Blackwelder.

[@DirtyChungus]

My answer, no. Unless you have a complex situation. Consider the Boglehead approach and you'll find it less time consuming, with regular, steady returns.