There are things you can control in other things you can’t and you need to control and and hold on to with every fiber of your being the things you can control because there’s so much you can inflation cost of goods geopolitical conflict Wall Street greed how long you live All these things you can’t control so it kills me on a daily basis clients come in and they show me their statements and then I analyze just the risk and and it’s just completely inappropriate and then the fees they’re paying.
For example a 2% fee on a deposit of $500,000 over a 15-year period reduces that investment by $487,000 over that 15-year period assuming that your advisor is a superhero and gets you 7% return annually and you never go backwards That’s insane so $500,000 would turn into $1,082,000 whereas if you didn’t have that 2% fee you would have $1,511,000 which for those keeping score at home is about the amount of your initial investment so people here are 2% fee or 1% fee or 50 basis point fee and they think that’s no big deal It’s a huge deal because it destroys the miracle of compounding interest.
Risk has its place but understand what you’re doing and quite frankly my clients are smart people they’re not stupid people It’s just not their expertise and so if I go talk to an engineer about something I’m not going to be up on his furniture I’m not going to be up on the the vernacular that is exclusive to that expertise so if you starts running around in circles around me talking about what he does and this and this and how this is so great and and he’s trained to do that You know I’m at a loss I don’t know what to do
It all comes back to education for us It’s teaching people The great thing about working with something that’s positive is that you’re not afraid to lift the curtain You lift the curtain you show people and they come to the natural conclusion that what you do is best for that and that’s a it’s a good position to be sitting in.
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