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The Problem With Financial Advisers
They win even when you lose from their advice
I’ll be the first to admit I don’t know all there is to know about investing my money. Yes, I have a bachelors in Economics, but that doesn’t mean shit. The world of investment vehicles was barely touched let alone covered in the curriculum. And I know I’m not alone in my ignorance. Enter the financial adviser, the guy (or girl) who supposedly knows how best to help you make money with your money.
His (or her) fee is generally in the neighborhood of 1% of your wealth yearly. Doesn’t sound like much, I know. But if you have a million bucks? Your financial adviser gets 10k every year for advising you on how to invest your money.
When I got the share of my seized assets back from the government, I was content to put it all in 5-year CDs. Granted, not a very aggressive strategy. But one that would more than pay all my expenses and leave me with no stress as to the principal fluctuating. But then my brother stepped in to tell me I was crazy and that his guy could do much better safely. I don’t know why — but I went for the pitch.
It is now almost 5 years later. Not only have I suffered through some serious anxiety from the ups and downs of the investments — but I’m behind where I would have been had I simply bought those CDs. And not…
