Rant from a Financial Advisor (no love for this in personal finance)

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> BUT if you just buy an S&P 500 index fund you will do better than most advisors and managers, follow Warren Buffet’s advice. NO SHIT!! This is true and should be used by everyone. BUT guess what??? Most people are not smart enough or disciplined enough to do this. You know I used to be pretty anti financial advisors as I saw them as completely UN-needed as most people could just open an schwab/vangaurd account and invest in a target date fund and be better off However the last downturn the huge number of people asking if it was a good idea to sell their entire portfolio and bet it on an oil fund (not to mention they had no idea they were buying futures contracts) made me somewhat re-evaluate my stance on the topic


> People hire advisors like me to keep them on track. To keep them grounded when the market turns bad. Mostly to keep them invested. Yes you heard me “to keep them invested.” so they pay you for emotional support?


I had money from relatives growing up and until recently had it with Edwards Jones. Fuck them. I can’t believe the bullshit they put everything in. 5% load fees into funds that are charging nearly 1% managing fee. Exit fees as well. I found it hilarious looking at my returns over the years. While the market probably averaged 10%, after all my fees I was likely getting 3-5%, not the mention some of the funds never even returned anything. I found it hilarious when I had to call to get my money out. I talked with the financial advisor and he told me I would have trouble beating the returns that I was getting with them. What a load of shit.


Fair points. Educated people don’t need advisors. But as you state, people panic sell. I would never recommend an advisor but I certainly see why some would need one. Low cost index funds, set it and forget about it. Let it ride at .03% expense ratio.


It all comes down to if they are an investment advisor or financial advisor. Many people can claim they are a “financial advisor” when they are nothing more than a salesman. If they are an investment advisor, they are FINRA licensed & have a fiduciary obligation to put the client’s best interest in front of their own.