The “Fee vs. Performance” Struggle
When it comes to investing, is cheaper always better? The race to lower fees has dominated financial conversations, but cost alone doesn’t tell the whole story. Would you choose a Toyota Camry or a Ferrari for a cross-country race? Both have advantages, and the best choice depends on your goals. The same goes for investing—some prefer low-cost index funds, while others seek actively managed funds that justify their fees through performance. Make sure your advisor helps you weigh cost against value, not just fees alone.
A Product for Every Strategy
Financial advice from influencers and media personalities often comes in extremes—either glorifying or vilifying certain investment products. The truth? There’s a time and place for every financial tool. No one-size-fits-all solution exists, and an effective advisor should be product-agnostic, fee-neutral, and focused on what’s best for you. Be sure your advisor isn’t stuck in a rigid mindset that could limit your financial potential.
The Overweight Doctor Principle
Would you trust a doctor who doesn’t follow their own health advice? The same applies to financial advisors. The “Overweight Doctor Principle” is about ensuring your advisor practices what they preach—recommending strategies they personally believe in and use when appropriate. Fiduciary responsibility is more than just a standard; it’s about trust. Is your advisor living by the same financial principles they’re giving you?