5 Awesome Reasons You DON'T NEED A Financial Advisor

We've all been told that we need a financial advisor, but what if you don't? Here are five awesome reasons why you might be just fine without one.

Timecodes

0:00 - Intro
0:30 - 01 | Most Financial Advisors Can't Beat the Market
1:53 - 02 | You Pay Even When Financial Advisors Lose Money
3:01 - 03 | Investing in Low Cost Index Funds Will Make You More Money
4:45 - 04 | No One Cares More About Your Money Than You
5:54 - 05 | You Can Learn to Manage Your Own Money

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Welcome to the Financial Tortoise Channel!

DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

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[herbertvonsauerkrautunterh]

I used an advisor many years ago. I dismantled what they set up, did my own research and did ready better myself

[jaybrown]

I totally agree. I used a financial advisor for about a year after I retired. However, I also started reading a lot of financial books and magazines on stocks, mutual funds, ETF’s and bonds and listen every morning while walking to stations like CNBC, Fox Business, and Bloomberg. I discovered that I could do as good or better than my advisor while saving a lot of money in fees. I’ve been doing it for about 7 years now and things are going good no regrets!

[KFOD]

Open a Vanguard account and invest in index funds. It’s that simple. Start young!

[glendavis]

Three items are missed. 1. Many financial advisors invest your money into mutual funds that have a sales charge adding to one’s costs. 2. Then when they complete the diversification of investment funds they rarely touch the array of investments, it remains the same under all market conditions. So you keep paying a fee all the time for a one time selection. 3. The expense ratios on these investments are usually higher than index funds.

[Carolinapetroska]

I agree. I definitely don't need a financial advisor. I do better by myself.

[carolyntrousdale]

Financial advisors come and go. At least, that's what I learned over the years. And along the way, I've wondered why I ever used one, especially, after I put the bulk of my investments into index funds with Vanguard. Why did I ever think I needed an advisor? Now, I'm 80 years old - not extremely rich - but have done okay. So, Tae, have you made any videos for us older folks who are mainly focused on preserving what we have?

[Mysticbladegod]

This is one of my favorite financial channels on YouTube. I've spent several years in financial services and Tae does a wonderful job explaining how personal finance works

[jessefletcher]

One thing I look for in investments is tax efficiency, yet when I ask financial advisors specific questions about taxation they always tell me that they aren't authorized to vend tax advice and I'll have to ask a CPA. So why pay the financial advisor?

[getnyrb]

I went to a financial advisor over ten years ago. Looking back the investments flatlined....I now manage my own finances at there has been a significant step change upwards. At the end of the day it is you that is taking the risks.

[feetforward]

buy VOO, VTI, BND from vanguard. buy single family rental (2), Roth IRA, 401K. Do all that and you will be good. don't hire financial advisor, they take from you.

[alexchou]

1. Always max out your 401(k) contribution 2. Pay close attention to what you have in all of your accounts (for example, if the funds in your 401(k) don’t perform well, roll over to your own IRA account) 3. Follow the market and economic news, not that you need to day trade, but it will give you some idea how you investment perform relative to the market, and whether you need to do something with it 4. Besides low cost index funds/ ETFs, look for vehicles ( for example, ETFs) that pay quite good distribution (5% or higher), compound interest is a very powerful tool.

[BlueRanger]

Amen... Thank you for sharing your knowledge!

[philipohara]

Tae I have only seen 2 of your videos so far and I find them excellent! Very good content that is presented very simply/clearly with no drama/flash. Keep up the great work!!

[theadaptivefitnesschannel]

Thank you for this video. All my life I had thought that stuff was really complicated. Now I’m learning it’s really simple. I am behind, but I intend to catch up as much as I can.

[jabow]

How interesting that this has reappeared. Hiring a FA cost me $5k in fees, $5 k in extra taxes and a very complicated portfolio.

[grahamwarrin]

Once again Tae you have nailed it. I am 63 and now manage all my own investments/pension with the majority in index funds with Vanguard, the only exception is five per cent in Berkshire Hathaway which I have held for the past five years and which has returned over seventy per cent in that time. Warren Buffett famously won his million dollar bet with the Hedge Fund Manager who bet Warren that he could pick a 'basket' of actively managed funds that would beat the S&P500 over a ten year period - the result wasn't even close, the S&P500 smashed the performance of the actively managed funds. You deserve to have at least a million subscribers.

[jackyanderson]

Thanks for letting us know this. I love that. I wish you all the best of luck.

[pascalbruyere]

I agree with every point. From experience.

[joeuser]

This is good advice when you are early in your life and it's relatively simple. If your life gets complicated, getting an advisor who's a CFP can be worthwhile. I made the switch midlife when my life got complicated and I don't regret it. There's nothing wrong with doing it yourself. Tae is providing good advice on how to do it. But there are services and products that aren't always available in the retail investing space. Especially once your wealth gets a little larger. So don't feel like a failure if you want someone else to help you. Just make sure you get a CFP and is acting as a fiduciary. There's a lot of good material out there on how to pick the one that's right for you.

[HopeToProsper]

Great video Tae. I learned way back in the 80s about financial advisors. I visited one and ended up with a horrible mutual fund, with an 8.5% front-end load. After that, I started investing on my own and have done well ever since. Learning to invest can be a very valuable life skill.