Tony Robbins: 9 Things Your Financial Advisor Isn’t Telling You
Written by
Adam Palasciano
Edited by
Maria Concepcion
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Money isn’t just numbers — it’s peace of mind. In a recent YouTube video, Tony Robbins explains financial freedom in his book “Unshakable.” Along with co-author Peter Mallick, they expose hidden truths advisors overlook.
9 Things Your Financial Advisor Might Be Keeping From You
Here are nine things your financial advisor probably isn’t telling you, according to Tony Robbins:
- Index Funds: Investing in index funds seems like an easy and fast route to market returns. However, the reality is different. Fees often result in lower returns for investors and can cause a lag in market performance.
- The Reality of Mutual Fund Returns: Robbins highlighted a 30-year study that indicated a stark gap. While the S&P 500 earned a solid 10.28%, the average investor gained only 3.66%. Fees play a major role in eroding financial futures.
- The Reality of Fees: Even small fees compound over time, drastically cutting your returns. Advisors suggest keeping fees under 1% since anything higher can severely erode your wealth. A mere 1% fee difference leads to substantial losses in the long run.
- Mutual Fund Performance vs. the Market: Many mutual funds don’t beat the market over ten years. Selecting top funds is like blackjack with bad odds.
- Transparency in Fee Structures: Mutual fund costs extend beyond the expense ratio. Taxes, cash drag, and trading fees impact returns considerably.
- The Reality of Hedge Funds: Hedge funds have hefty fees and uncertain results. To add, many hedge funds are unsuitable for most investors because they underperform market benchmarks.
- Why Tax Efficiency Matters: Taxes diminish investment gains, especially without tax-efficient strategies. Minimizing tax liabilities maximizes long-term profits, which is crucial to your financial growth.
- The Importance of Educating Investors: Investors often overlook fees’ impact on their investments. Being educated about fees, taxes, and other critical factors empowers investors to make informed decisions about their financial future.
- The Path to Financial Freedom: Real financial freedom is simplicity and low-cost, tax-savvy plans. Transparency, minimal fees, long-term goals–these let you weather rough markets calmly and lead to sustainable financial growth.
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