Let’s cut to the chase of this ‘one thing’ you need to do and then I’ll explain the rational and why you will be compelled to leave your advisor.
Compare all of the holdings (large cap funds to mid cap funds) your advisor has you in, to the SPY. Unfortunately, you are about to find out how poorly your invested money is doing.
Step one (this is best done on a desktop)…
Look at your statement and find the ticker symbols of your holdings. An example would be AGTHX or MEIIX (these are holdings that students were stuck in by their Financial Advisors).
Go to yahoo finance and type in “SPY” in the search bar. This will bring up a low-cost ETF that essentially owns the S&P 500 companies.
click on the full screen hyperlink
click on the plus sign in upper right hand corner.
When you click on this sign you then will click on ‘add comparisons.’
Now enter the ticker symbol of a fund your advisor has you in…
I will compare the SPY to MEIIX and AGTHX over the last 5 years.
It’s important to see if you advisor is at least keeping pace with a low-cost fund right????
Oh wow would you look at that!!!! You just discovered that your funds are massively underperforming the SPY!!! The above chart goes back 5 years. Feel free to go back 10 years or whatever you like.
LEAVE YOUR ADVISOR
Not only is your hard-earned money underperforming, BUT YOU ARE PAYING FEES TO YOUR ADVISOR ON TOP OF IT.
The truth of the matter is that advisors don’t outperform a low-cost ETF or Index fund. So why not just own a low-cost fund and not pay those yearly fees?
Let’s now compare a few no-brainer companies (I discuss all of my favorite companies and low-cost funds in my courses, among other things..see below) that I am invested in, to these dismal, actively managed high-cost funds, your advisor has you in.
That’s what my money is in. It’s in the best companies of the world and it’s free from advisor fees and mutual fund fees.
You may think you are doing well because your money has grown…
but is it nowhere near what it could be.
It’s time you take action and ensure that you have a plenty of money in retirement years.
Here is a link to all of my courses. I recommend that you start with ‘Stock Market Investing Made Incredibly Easy”
Only for blog readers do I offer this special…
You can get access to all of my courses ($699 value) for $99 per month. This offer also includes a 5 day free trial. These are the courses I wish I had over a decade ago!
Take advantage of this opportunity. You have nothing to lose and everything to gain.
Here is the link to to access this offer. All of my courses are uploaded on Thinkific.com. Cancel anytime.
I wish you the very best.
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About the Author
Brandon Bitar graduated from Geneva College in 2005 and enrolled in medical school in 2008. He left medical school in 2010 to pursue his passion, which is investing. He is a successful stock market and real estate investor.
In 2020, during the shutdowns, Brandon began developing online stock market investing courses. One year later Streetwise Investing was born. With the encouragement of students that went through his courses, he decided to launch the Streetwise Investing podcast and begin blogging. He is excited to share his knowledge about investing with the world.