Clowns & Distractions

As a seasoned professional in the world of finance, I recently stumbled upon an article from a so-called "financial advisor" who had the audacity to list 21 ways to save money. The title? "21 Dumb Things People Waste Money On." Intrigued, I decided to do a little digging on this self-proclaimed expert. Lo and behold, I discovered that they charge a whopping 1.5% for assets under management (AUM), and on top of that, they use a third-party asset management platform, which, based on my research, tacks on another half a percent. That brings the total cost to a staggering 2%.

Let's break this down, shall we? If someone has $500,000 invested with this joker, they're paying 2% a year for asset management. That's $10,000 a year, folks. And if you have $1 million? Well, you're looking at a cool $20,000 a year. But wait, there's more! The third-party asset management platform is also using mutual funds and ETFs, so the actual cost is closer to 2.5% when all is said and done.

It's funny how people constantly complain about their money not stretching as far as it used to, yet they eagerly lap up articles like the one I read, where the tips and tricks are admittedly sound, but the real savings could be achieved by not paying a slow-bleed commission, which is precisely what asset management is.

So, here's the deal: when you come across these articles, you need to dig deep and understand what's really being sold to you. Is it genuine financial advice, or is it just a clever ploy to keep you hooked on their services while they siphon away your hard-earned money?

In my opinion, people would be better off taking control of their own finances, educating themselves, and making informed decisions rather than relying on so-called "experts" who are more interested in lining their own pockets than truly helping their clients.

As a professional in the business world, I've seen my fair share of financial advisors, and I can tell you this: the ones who truly care about their clients' well-being are few and far between. So, the next time you read an article about saving money, take a moment to consider the source and their underlying motives. It might just save you a fortune in the long run.