Most fee only advisors only deal with higher levels of net worth....and if they don't, their fees are prohibitive for people to get started. 2.1% is the average total fees on investment accounts according to the Forbes.com study
@LIFE180 I've seen that as well but I wouldn't say "most". I respect the study but I'm an advisor and I don't see fees that high from competitors so that's strange to me. I'd say get an advisor for full financial planning (education, estate, insurance, etc.) for a 1-time fee. AUM thta high aren't worth it.
This is something I gleaned years ago. Fee-only advisors, while they may not be as driven to churn your portfolio as much as they were back in 90s, frankly are happy sitting on their duffs and let you sock away your capital under their management. And to top things off, fee-only advisors often aren't involved in things like real estate, which is why you never hear them recommending rental properties. Same for cash-value life insurance. Nope, it's quite simple to whisper "buy index funds" with a drum-beating newsletter that takes minimal effort while they slowly but surely scoop up fees for little effort.
Yep.....pretty sad....Yet somehow people just fall in line and this it is the way to go while these "fiduciaries" obviously. have the best interest at heart...
Great video exposing the facts and bringing about numbers to the argument that whole life salesmen make so much commission. I think it's sick that advisors get paid a fee when you lose money and also make the fee on the government's portion, the part you'll never take receipt of. Advisors should only get paid a percentage of what they make you, not all assets under management. And if they lose you money, they refund you the equivalent of their fee, a true performance based pay.
Biggest difference is financial planners actually get a real education and a life insurance agent can get licensed in one week. Huge difference. It's better for everyone to get educated and do what's best for them
Haha. Life licensed as well as securities. Always do what’s best for the client. You just don’t want someone to cut into your gravy train. When an advisor sells whole life, they only ever get a % of what’s put in. Traditional advisors like yourself get not only a % of what’s put in but also a % of the account value FOREVER!!! Let’s don’t try to talk about who’s doing right by their clients. 😀
@@firecraig lol both get paid a percentage forever. It's why so many life insurance companies push life insurance as "passive " income. They get paid as long as that account is active
@@mda0214when a client stops paying into a policy the agent gets ZERO. Even on policies that the client pays into their whole life they only get a small % maybe 3% of the PREMIUM!!! Never a % of the cash value. 😀
Education only goes as far as the beliefs and biases the "advisor" has and if they are the rare breed to look beyond industry training, product pushing, and closed minded strategies. In either profession you mentioned, the best are continually learning, evolving, challenging what they think they already know, and always putting client's needs first. At the end of the day, it's about results. I can go to a super educated MD and get a drug to mask a symptom. I can also go to an energy healer that could solve my issue permanently in a few visits or less.
@jeffreykamke I can agree with that but I guarantee that energy healer been studying for years. They didn't go to a conventional school, but they put in time studying. Life insurance agent you can get a license with no experience. All you need to do is study for a couple of days and can pass the test. I'm telling you from experience. Most agents push a lot of bs because they're uneducated. They only know what's told to them. Good point bad analogy
That is true. But most people don't ask. However, there are other fees from certain types of management companies (depending on how the advisor runs their practice), that are not negotiable.
@@LIFE180 less than waht the average,there are tools now that's available by your finger tips to educate yourself with retirement investing, tatget funds for example had been very consistent for decades.
Learn to create an alternative financial strategy - set up a clarity call with a LIFE180 coach:
LIFE180.com/clarity-call
If you don't want to pay a commission, then get a fee-only advisor that charges a fixed fee. Or much smaller percentage than 2%. That's really high.
Most fee only advisors only deal with higher levels of net worth....and if they don't, their fees are prohibitive for people to get started.
2.1% is the average total fees on investment accounts according to the Forbes.com study
@LIFE180 I've seen that as well but I wouldn't say "most". I respect the study but I'm an advisor and I don't see fees that high from competitors so that's strange to me. I'd say get an advisor for full financial planning (education, estate, insurance, etc.) for a 1-time fee. AUM thta high aren't worth it.
This is something I gleaned years ago. Fee-only advisors, while they may not be as driven to churn your portfolio as much as they were back in 90s, frankly are happy sitting on their duffs and let you sock away your capital under their management. And to top things off, fee-only advisors often aren't involved in things like real estate, which is why you never hear them recommending rental properties. Same for cash-value life insurance. Nope, it's quite simple to whisper "buy index funds" with a drum-beating newsletter that takes minimal effort while they slowly but surely scoop up fees for little effort.
Yep.....pretty sad....Yet somehow people just fall in line and this it is the way to go while these "fiduciaries" obviously. have the best interest at heart...
Thank you for doing this video - been trying to explain this to my kids and others.
It's a biggie. How old are your kids?
Oldest is 14. I think he's getting it.
Were you sharing that file on Google drive?
Hey Chris! Great video! Just subscribed. As a fellow practitioner in Canada would love a copy of your spreadsheet.
Shoot an email to chris@LIFE180.com and I'll send to you
Great video exposing the facts and bringing about numbers to the argument that whole life salesmen make so much commission. I think it's sick that advisors get paid a fee when you lose money and also make the fee on the government's portion, the part you'll never take receipt of. Advisors should only get paid a percentage of what they make you, not all assets under management. And if they lose you money, they refund you the equivalent of their fee, a true performance based pay.
100% agreed. But then there wouldn't be as many financial advisors, lol
Long awaited video! Good stuffs.
Thanks, Chad!
Hey Chris! Great info! Just subscribed. As a fellow practitioner in Canada would love to receive a copy of your spreadsheet!
Shoot an email to chris@LIFE180.com and I'll send you the sheet
Send an email to chris@LIFE180.com and I'll send to you
Great Video, it opens your eyes. Can I get a copy of that spreadsheet? Thanks
Email Chris@LIFE180.com
What a great tool to open ones eyes to the true-nature of managed fees, using the analytics of calculator math. Very simple and immensely practical.
Thanks! I think if everyone understood this, it would change the way they invest....
Interesting...
No boring?
@@LIFE180 more interesting than WL...lol
I definitely want the Excel spreadsheet!!!!
Great video! It’s sad people don’t realize how much they lose with traditional financial planning. Would love this calculator! Thanks!
Email Chris@LIFE180.com
Biggest difference is financial planners actually get a real education and a life insurance agent can get licensed in one week. Huge difference. It's better for everyone to get educated and do what's best for them
Haha. Life licensed as well as securities. Always do what’s best for the client. You just don’t want someone to cut into your gravy train. When an advisor sells whole life, they only ever get a % of what’s put in. Traditional advisors like yourself get not only a % of what’s put in but also a % of the account value FOREVER!!! Let’s don’t try to talk about who’s doing right by their clients. 😀
@@firecraig lol both get paid a percentage forever. It's why so many life insurance companies push life insurance as "passive " income. They get paid as long as that account is active
@@mda0214when a client stops paying into a policy the agent gets ZERO. Even on policies that the client pays into their whole life they only get a small % maybe 3% of the PREMIUM!!! Never a % of the cash value. 😀
Education only goes as far as the beliefs and biases the "advisor" has and if they are the rare breed to look beyond industry training, product pushing, and closed minded strategies. In either profession you mentioned, the best are continually learning, evolving, challenging what they think they already know, and always putting client's needs first. At the end of the day, it's about results. I can go to a super educated MD and get a drug to mask a symptom. I can also go to an energy healer that could solve my issue permanently in a few visits or less.
@jeffreykamke I can agree with that but I guarantee that energy healer been studying for years. They didn't go to a conventional school, but they put in time studying. Life insurance agent you can get a license with no experience. All you need to do is study for a couple of days and can pass the test. I'm telling you from experience. Most agents push a lot of bs because they're uneducated. They only know what's told to them. Good point bad analogy
Money management fees are negotiable. An advisor can take a haircut to sustain a good client.
That is true. But most people don't ask. However, there are other fees from certain types of management companies (depending on how the advisor runs their practice), that are not negotiable.
always go for fiduciary.
Nope. Too many fiduciaries still push BTID.
That doesn't matter.... fiduciary still charge management fees....
@@LIFE180 less than waht the average,there are tools now that's available by your finger tips to educate yourself with retirement investing, tatget funds for example had been very consistent for decades.
@@tadrod2323still, only investing in the market is proven to not be the best way. Need a non correlated volatility buffer asset like WL.