Not only that, but by shirking responsibility for your own investments, you are also losing a lot of money in COMMISSIONS. The fees you pay to a financial advisor may not seem like many, but they are a huge amount of money in the long run. Even a 2% commission can wipe out a significant amount of your future wealth creation. If you manage your own money, it's like most Americans, according to the new CNBC Invest in You survey released Monday.
Large-cap fund managers, people who could be considered the most elite of the elite when it comes to financial advisors, are outnumbered by the S%26P 500 a staggering 92.2% of the time. As already mentioned, the S%26P 500 outperforms large-cap mutual funds 92.2% of the time. Phil Town is an investment advisor, hedge fund manager, 3-time NY Times best-selling author, former Grand Canyon River guide and former lieutenant in the United States Army Special Forces. He and his wife, Melissa, share a passion for horses, polo and events.
Phil's goal is to help you learn how to invest and achieve financial independence. Many people think that using a financial advisor is expensive and only for the rich, said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth in New York. If you've always done your own planning and money management, you may think you don't need a financial planner to help you. Not all customers are financially sophisticated or, in fact, are interested in their financial affairs.
There is a lot of noise in financial planning because a lot depends on the context and completely subjective factors such as your values, your specific goals, your interests, the tradeoffs you are willing to make and your non-negotiable things in life. Find a CPA who enjoys the financial planning aspect, who can take a look at the big picture and let you know if things are on track, but who delves into your tax situation and helps you where you really need it. Time is money, and there is a cost to delaying good financial decisions or prolonging bad ones, such as keeping too much cash or postponing an estate plan. A good financial advisor can add a lot of value to your financial well-being and can improve your quality of life.
This is perhaps more common when dealing with financial advisors who receive full or partial compensation through commissions for the sale of financial products.