SEE

Willful Blindness

In the world of financial services, willful blindness refers to the phenomenon where investors choose to ignore or remain ignorant about the true costs associated with investing, particularly when it comes to the assets under management (AUM) model. This lack of understanding is prevalent among more than 95% of investors, who fail to comprehend the significant impact of fees on their investment returns over time.

AUM

The AUM model, which charges a percentage of the total assets managed, can be particularly detrimental to investors' long-term financial well-being. However, many investors, especially those aged 55 and above, often find themselves embarrassed by their lack of knowledge in this area. They equate their inadequate understanding of financial concepts and costs to a form of illiteracy, as if they were unable to read or comprehend the information presented to them.

Embarrassment

This embarrassment leads to a phenomenon known as the "Senior Embarrassment Excuse" (SEE), where older investors use their discomfort and perceived lack of knowledge as a reason to remain in their current investment situations, even when they intuitively know that they should explore alternative options. The SEE mentality prevents these investors from taking proactive steps to educate themselves and make informed decisions about their financial future.

Take Mature Control

To combat willful blindness and the SEE mentality, it is crucial for financial professionals to prioritize investor education and transparency. By clearly explaining the costs associated with various investment products and services, and demonstrating the long-term impact of fees on investment returns, advisors can empower investors to make well-informed decisions and take control of their financial destinies.