The financial services industry often profits from the misconception that managing your investments is too complex, leading you to believe that you should pay them to do it for you. This just isn’t true, and we debunk this myth and explain how to transition from relying on a financial advisor to managing your own investments.
Andrew joins this week’s podcast as we talk about:
– Why it’s so important to consider the long-term cost of financial advisor’s fees
– The differences between a commission-based and fee-based/hourly financial advisor
– Why you don’t need a commission-based financial advisor or planner
– Examples of how much fees add up and impact your financial growth
– Historically average market returns beat financial advisor portfolios
– How to break up with your financial advisor
– A specific email or phone script for what to say to end the relationship
– The specific process of transitioning from an advisor to managing on your own
– Gain the confidence to learn how to invest in low cost index funds yourself
Script for breaking up with your financial advisor or planner:
Dear [Financial Advisor’s Name],
I hope this email finds you well. I want to express my sincere appreciation for your assistance and guidance over the past [duration] years. After careful consideration, I have decided to no longer use your services.
As of [name specific date], I would like to terminate your financial advisory services on my account. Please let me know if there are any pending transactions or outstanding matters that we need to resolve prior to this termination date. And please provide any instructions on how I can retrieve my financial data and records post-termination.
Thank you again for your support, and I wish you all the best in the future.
Sincerely,
[Your full name and contact info]
Show References:
- Personal Finance Club – How much do financial advisor fees cost
- Inside Out Money episode #003 – How and why to invest in index funds
- Inside Out Money episode #039 – What’s in our wallet? Our index funds, accounts, and more!
- Inside Out Money episode #052 – Simplifying our finances – How we’re saving $20K by ditching robo-investing
- Personal Finance Club – Nectarine, hourly financial advisor advice
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