How My Financial Advisor Profited More Than I Did
No horror story, they just made more money out of me than I made out of them, so in a way they taught me a useful lesson. This was back in the 90s, when we were all simpler folk.
Related Horror Stories
The 1% Trap: How a Small Fee Can Cost You 32% of Your Investment Returns Over Time
Using the compound interest calculator at investor.gov, a $10,000 initial investment compounded at 7% annually will be worth $149,744 after 40 years; at 6% (representing a fee of 1%), it's worth only $102,857. The 1% fee ate up 32% of the return.
Giving Control of $100K and Earning Less Than Their Fees
I once gave a major fund control of 100G for one year. I got a 2% return. They made more money in fees than I did in ROI. Meanwhile, the rest of my money invested in index funds earned 10%+ after fees.
Paying for Underperformance
I was paying an advisor $8k per year. He never beat the market and often underperformed. Lovely guy, but once I had enough time to look into it all (the lack of time is WHY I got an advisor in the first place), I realised I was being utterly reamed given the size of my portfolio.
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Have you had a negative experience with a human financial advisor or other human “financial expert”? Share your story to help others avoid similar issues. Together, we can shed light on the importance of reliable, unbiased financial advice - its been a big motivator for us to build PortfolioPilot.
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