[April]

We have 60knwith our financial advisor at Chase. We made 15k in 4 years feel like it is a very slow growth and tbh they always cancel out appointments.

Any advice on what to do?

Any recommendations?

[Doug]

Another suggestion for just buying a whole market index like VOO (and many others out there).
And I suggest reading “The Simple Path to Wealth”

And here’s what Collins (the author) says about financial advisors:

“Managing other people’s money is a very big business, and for those who engage in it, a very lucrative one.

“Since investing and managing money is highly intimidating for many folks, there is also an apparent need.

This financial stuff just all seems so complex, it is not surprising that many people welcome the idea of turning it over to a professional who will, hopefully, get better results.

“Unfortunately most advisors DON’T get better results. Investing only seems complex because the financial industry goes to great lengths to make it SEEM complex.

Indeed many investment are complex.

But as you already understand, not only are simple index investments easier, they are more effective.

“Advisors are expensive at best and will rob you at worst. Google Bernie Madoff. If you choose to seek advice, seek it cautiously and never give up control.

It’s your money and no one will care for it better than you. But many will try hard to make it theirs. Don’t let it happen.

“When I say investment advisors, I am also referring to money managers, investment managers, brokers, insurance salespeople (who often masquerade as financial planners) and the like.

Any and all who make their money managing yours.

Now, I am sure there are many honest, diligent, hard working advisors who selflessly put their clients’ needs ahead of their own.

Actually, I’m not at all sure about that. But just in case I put it out there in fairness to the few.

“Here’s the problem:
1. By design, structurally an advisors interests and that of their clients are in opposition. There is far more money to be made by selling complex fee-laden investments than there is in simple low cost effective ones.

To do what’s best for the client requires the advisor to do what is not best for himself. It takes a rare and saintly person to behave this way.

Money management seems not the calling of the rare and saintly.

2. Well- intentioned but bad advice is endemic in this field. Advisors who put their clients interests ahead of their own are, to steal a phrase from Joe Landsdale in his novel Edge of Dark Winter, “rarer than baptized rattle snakes”. And then you’ve got to find one that’s actually good.

3. Advisors are drawn not to the best investments, but to those that pay the highest commissions and management fees. Indeed, often they are compelled by their firms to sell these types of investments.

Such investments are, by definition, expensive to buy and own.

And investments that are expensive to buy and won are, by definition, poor investments.”

[Aaron]

How aggressive did you tell your financial advisor you wanted your investments when you set up the account? How much risk and volatility did you tell them you could handle?

It sounds like they invested it very conservatively, but that may be based on the direction that you gave them.

As far as your lack of service, I would self invest or find another financial advisor.

[Drew]

I would terminate the services of the financial advisor and self manage.

[Rochelle]

When you first met with them, they may have asked you about your “risk tolerance” and if you told them safe (not aggressive), it might have been invested in something with lower risk and therefore less growth.

Also, if you are closer to retirement, that might be why as well.
Put your money in dividend paying ETF’s which mimics the S&P 500 (for diversification).

You can do this yourself at Schwab, etc.

Make sure you have 3-6 months emergency funds in a high yield money market account or a few CD’s.

[Maranda]

I had same experience with advisor for 2 years…When I realized they weren’t matching what I could be getting on my own, I pulled out.

Mine has grown exponentially and I feel like I can watch what it’s doing better. Just read simple path to wealth. It empowers you to self manage.

The only thing helpful with the advisor is he gave us advice to contribute more to be where we wanted to be.

We thought we were doing good but he gave us a reality check.

[Al]

What type of account is this money in… Brokerage or retirement? How old are you?

[David]

Just buy index funds. Especially the S&P 500.
From Jan 2021 until Jan 2025, the last 4 years, S&P 500 went up around 61.60%.

So, your 60k should go up around 36,960 to 96,960.

Any advisor that isn’t beating this isn’t worth the money you spend on their fees.

[Mike]

Are you doing Chase Private Client? I was not particularly impressed with the solutions they presented, especially for a 1% management fee.

As others have said, a simple S&P 500 ETF is going to outperform most of these money managers.

[Author]

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