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
Whole life insurance as an investment vehicle
The one stands out and given by multiple of professional or so-called professional is to buy a "Whole Life Insurance" as an investment vehicle plus life insurance coverage vs. a "Term Life Insurance" policy.
Just do some calculations of the future value (Excel formula FV) in 20 years of the estimated monthly premium cost for a $1 million Whole Life Insurance vs. a 20 year Term Life Insurance (for the rate of return, you may assume 8%, in some estimates the long term retun of the stock market if you invest that money in Index Mutual Funds.) – you'll be SHOCKED!
Just realized how much we are paying for financial advisor
We are invested with a big name financial investment company but have a good relationship with our financial advisor. Until today I never thought about how much it cost. The rate is 1.35%. I always thought that was 1.35% of the profit but apparently it’s the entire balance. Our rate of return last year was -8%. Yes that is negative.
Well on top of this we were charged our fee of $3600. I have no idea what to do. My husband and I both have IRAs a few stocks, a CD, 2 529s for our kids. How do I get this money out and how can I invest this. I had luck with vanguard in the past when I was single but had some tax issues once we got married that is when we went to the financial advisor. Edit: so the -8% is actually April 2022-April 2023. My actual rate for jan 2022-dec31 2022 was -23.4% plus they still charged the 1.35% so in actuality in 2022 I was down 24.75%!!!!! I feel like such an idiot.
not confident and can't trust my financial advisor
I am 27 years old and recently inherited about $700,000. My family has a financial advisor through a more prominent firm, but I can not trust the guy. He is charging +2% fee on our total sum. He got a lot of customers, so I feel like he does not have enough time/energy to focus on my wealth.
I have been studying/reading and thinking about doing it by myself through Vanguard's index funds. I'm thinking put majority of my money in couple index funds and let it sit for years without making adjustments. However, I am pretty scared that I'm going to blow all my money.
Some say I should hire a financial advisor, but it seems like FA are all trying to do whatever is in THEIR best interest (although they say that they will be my fiduciary).
Edit: I'm sorry. I don't think I was clear regrading the fee he is charging us. 2% is one time fee as long as I leave it in that designated mutual fund. What I meant by total sum is $ I will put into a mutual fund and after that i guess there are some "hidden" fees. I guess the fee is set by each mutual fund company and he gets a little portion of that 2%.
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