The Financial Advisor Scam EXPOSED: How They Take 100k+ Away From You!

Hey everyone In this video I talk about financial advisors and expose the truth about how they really make money and how it affects your investment portfolio.

I give you guys a breakdown of the 2% and 20% rules that financial advisors use to manage your money. They essentially invest generically in the stock market, get a 6% return, and keep 2% OF THE ENTIRE PORTFOLIO to themselves.

This means two things. One is that they will significantly lower your portfolio's worth over time. A 2% fee can cost you hundreds of thousands of dollars over 30 years.

The second thing is that the advisors might be sales oriented. Because they care more about assets under management than actual return on investment.

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[michaelruel]

Jack...what you're talking about is how HEDGE FUND managers get paid, not financial advisors.

I used to work for the largest wealth manager in the world (UBS) and not one advisor I ever worked with charged clients this much. A typical fee might be 1% and they do not take any percentage of profits.

[MichaelEllis-yl]

Hilarious, *Grind Techiei* I love the work you do mate. Those low life scammers take money from old ladies, they have no soul or heart and deserve everything u give them. Your doing a service to humanity. Love the videos, keep doing the good work mate..

[ggtaruc]

Financial advisors should only be paid based on performance of your investments. They will get paid if investment makes money. They should not get paid if investment loses money. People should not be agreeing to pay whether investment loses money or not.

[northof]

The only true Financial Advisors are fiduciary or not-for-profit advisors, the rest are sales people who work for their commission, not you. Next time you speak to a "certified financial advisor" ask who actually certified them, most often it's the employer, e.g. a bank and not an independent body. I am a professional banker who actually studied finance and economics, they only know the products they have to sell.

[scottwarren]

You are just a kid, you have no experience. Come back in 20 years. I buy 100, 000 shares of stock and they only charge me 54.95 which is commission and fees.

[JayJay-pmze]

You are wrong. This is the structures of private investment funds, not financial advisors...
You really need to do your homework first before you make a video on topic you’re not familiar with.

[stevenmorris]

I thought this video was going to be about the current YouTube explosion of investment scams.

[alexzandz]

Bernie Madoffs returns weren't 25%- they were much lower, but consistent. I think about 10-12% but, because he grew his fund so much he returned that regardless of market conditions. That was in a way the beauty of it. Psychology says most people just want consistent gains, little risk

[notcoolphone]

2 and 20% is specific to Hedge Funds, not financial advisors.

[dumbdeep]

A bit dramatic to call it a scam. People get financial advisors because of fear, inconvenience or whatever else. Yes people are losing thousands because of financial illiteracy but they are also too lazy or afraid to do their own investing.

[markk]

Absolutely spot on, thank you! Sadly most are too stupid to ever understand this.

[eduard]

Jack which books should we read to educate ourselves, thank you again

[karyn]

What about front load fees or $19.99 for every stock purchase

[tg]

VTI should put every advisor out on the streets.

[mr.profolio]

I have never commented on ANY videos before, but I would be negligent to not mention how TOTALLY wrong you are about nearly everything you said in this video. It is clear you did not do ANY research and just compiled a list of random fees that are charged by different kinds of firms. You are doing a massive disservice to your viewers.

[prawee]

No advisers take 20% of the profit. Most advisers charge around 1%. Most advisers don’t charge per hour. Funny how stupid this is

[connorc]

Dude this is so incorrect. It's not how an advisory fee works.

[ljrockstar]

Hi, I have IRA accounts in EJ, I want to move it out of there now. But, how do you go about moving it. I plan to move it to Fidelity and Vanguard. I'm afraid to approach my financial advisor.

[lp]

Awesome content bud🙂 imagine the returns when you take out tax and inflation plus their fees..you might make 1% a year or something.

[rogerwx]

great job, im trying tell someone they dont believe how can i they put in 300, 000 10year ago show me what i can show them without me knowing their money