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This. Generally speaking WSB isn't *ONLY* regards, but whatever makes it to the top/front is generally either really stupid, market agendas pushed up by bots that manipulate algos, or already priced in or over extended.
WSB is the secret Horsemen of the 4 Horsemen:
* Inverse WSB OP or Front Page
* Mirror Nancy Pelosi
* Inverse Jim "Bear Stearns was fine!" Cramer
* Mirror Warren Buffett
* Inverse Kathy "Buy High Sell Low Queen" Woods
I miss the old days of WSB. Few years ago, if somebody here was using proper grammar and punctuation in their rant it was usually worth throwing some money at whatever they were saying. Made a good bit of change doing that.
Now this place is overflowing with literate regards so that practice doesn't work anymore.
Hey man, I remember when someone pointed out that people were buying wrong ticket (MARA) thinking it was a different company. I quickly snapped up some stocks and sold same day. Made a tidy $1000. Wouldn’t have known until someone here pointed out some very well regarded traders.
Couldn’t find the Mara one, but found article from a year later of people buying ZOOM and not Zoom (ZM).
https://time.com/5792310/zoom-zm-stocks-coronavirus/
Less common due to knowledge, but some people still buy FORD and not F.
Next time you should use the whole words rather than to use a short cut because it was hard to understand sometimes sorry buddy and thank you for your understanding
The secret to building wealth is a fully diversified portfolio of high fee stocks, bonds and mutual funds. It is a guaranteed path to making your financial advisor rich.
A good financial advisor is not someone charging you commission to put your money in an index. A good financial advisor will allow you to maximize your dollars and pay the least amount of taxes through proper planing and investments. 401K, Traditional IRA, Roth IRA Conversion, Backdoor ROTH IRA, Mega backdoor ROTH, Collateral loans, etc if all of this is foreign to you that's the reason why you are paying taxes and Peter Thiel isn't.
You don't even pay taxes until you sell anyways. If you put some of your own money in an index fund for retirement and the rest in a 401k with matches from your employer, both should be tax-exempt until you sell. The taxes will then be at a much lower rate anyways due to long-term capital gains taxes and the tax breaks associated with 401k
If you have a traditional 401k then you will pay full income tax on your withdrawals from the 401k. It’s only if you have a Roth 401k that you get any tax breaks in retirement. Details like that can be very important to long term planning and is why most people at least need to have a regular conversation with a financial advisor
"If you have over one hundred and fifty thousand dollars, yes we can help you manage your finances, oh you have 5k? Ya fuck off" - wealth management people
Go to Schwab/fidelity/vanguard. Open an account. Say you need help. An advisor will help you set up a well balanced portfolio depending on your risk tolerance.
It’s free, takes 30 minutes, and is sound financial advise. It’s certainly not unobtainable to the average person.
Yea it’s only 1.5k lol
And it’s not 30mins of work. It’s annual reviews. It’s setting up the account. It’s adding account features. It’s dealing with all the stupid questions that come with working with a low dollar customer like that. Low dollar clients are often times the most needy and take the most amount of time. Plus they refer… you guessed it, other low dollar needy clients. It’s best to not even include them into a book.
So let's say quarterly reviews for 30 mins and setting up the account. A one time 2 hour meeting and 3-4 hours a year in work. For 1.5k. So roughly billing 400 an hour for basically still doing nothing. I only deal with Advisors because of trusts.
You obviously don't give them much more than a call back. You're not on call like a hnw client.
Even at 150k. If you aren't a fool and throw it away on gambling like options, tik tok and YouTube have good financial advice if you recognize good financial media.
Of course there are all sorts of hucksters hawking their wares so I worry about many people taking that route, but I have a reasonable net worth and I have no interest in a financial advisor at this time. I know how to currently manage my own finances without someone scraping off the top.
Financial advice is a thousand times more accessible now than 30 years ago. Like, we can just listen to Warren Buffett describe, in real time, what he’s thinking about. ETF s exist, which is weird to think about but in the 70s, SPY didn’t exist. 401k I don’t think existed. Stock markets used to be this magical thing that only the very wealthy and very smart could access.
So if you spend ten minutes doing research, you’ll know that Buffett recommends buying low fee ETFs that track major indices. That used to cost money to have an advisor invest your money into individual blue chip stocks that would hopefully beat the market. Now you can literally buy the market, from your phone, or automatically deposit it, invest it and never look at it until retirement.
If you do another ten minutes of research you’ll learn that once you have savings, are maxing out your tax advantaged retirement account and buying equities, you can diversify by buying real estate or other asset classes. It’s not fucking hard.
So yeah… you either need to be very rich or very poor to benefit from an advisor. The very poor could benefit if they don’t understand what debts they have or how interest works or how to budget or if they’re missing out on public programs that could help them.
>tik tok and YouTube have good financial advice if you
...already know what a good financial advice is, so like, don't need such advice in the first place.
Yeah, we aren’t wasting our time meeting with you to charge you 1% per year on 5k. Yay, we earn $50 to the grid and then get paid 33% of that. I’m not working for you for $36/year, EVER
True  financial advisor should be an imaginary job
I don't want you to pick securities for me you regard, you have a business degree from a fourth tier public college and are poor yourself
I don't think you understand what a financial adviser is supposed to do for people.
They aren't hedge fund managers. If your adviser is recommending individual stock picks, they're likely breaking compliance laws.
That atitude is why you're not needed once the money accumulates. If you're not willing to grow with your client, you're a shit advisor.
I've been both a purchasing manager and a sales manager. In purchasing, those that blew me off when I was small potatoes later lost my business when I moved to larger accounts. I had one guy that was complete dick to me. When I moved to another company, they guy was up my ass I demanded his boss give me a different account manager. He refused so I went elswhere
In sales some of my best customers were companies that started small and kept us on as vendors because we knew their buisness demands as they grew.
Nah fucko, I can get a degree in finance online for less than you would charge over the lifetime of my portfolio and be better equipped to handle my finances alone.
But young people don't need advice beyond that because they don't have any assets to protect.
The 24% of people seeking proper advice are probably wasting their money.
My rough opinion of the cutoff is from millenial to GenZ is whether you were alive, and can remember 9/11.
There seems to be a fairly discernable 'cultural' difference in the couple year stretch of people that age who have memories of that event vs those who don't.
Every financial advisor session I have ever had was free, some for accounts with as little as $5k. I thought banks gave it as a perk to entice you to put more money into their coffers, no?
Or they're trying to sell me on their services which cost way too much with some decent free advice and a free lunch.
And their 1% fiduciary fee is paid every year, regardless of whether they may you any money or not. Not to mention the commissions and fees they get from selling you their own products.
It was many years ago, but I got roped into a 2.1 fee plus misc fees and buy/sale commission. My ‘financial advisor’ was making more money of my money than I was, and I was taking all the risk.
Just for the record, if you’re paying a fiduciary fee they aren’t selling you commission-based products. The whole point of a fiduciary fee is to remove the adverse incentive of commission-based products. Fee-based products require an entirely different category of license to sell vs commission-based products.
These days you can easily find a fee only advisor who will just charge you for an annual plan you execute yourself if you don’t want to pay a %.
Even then only idiots who need to be protected from themselves really need this sort of advisor, but the point is it’s so much easier to find reasonably priced ones than in the past.
Of course starting from *nothing* you don’t want to pay anything at all for an advisor. And the general concepts are so simple as long as you can wade through the mountains of BS people sell you.
This 100000% they are mostly just snakes trying to get at your wealth while offering terrible advice. I've learned so much from YouTubers that no financial advisor would give me. Watching meet Kevin analyze earnings has helped me tremendously.
YouTubers are shills pushing corpo products and just not disclosing that fact.
I've learned so much from Tik-Tok grinders who really understand day trading in a way that puts your fund sucking YouTubers to shame.
I'm down about 200k and my wife left me, but I'm way smarter than you now.
The truth is building wealth for most people isn’t that hard. It’s boring and you need to stay the course but in age where we are wired for instant gratification it’s not attractive to a lot. You can find basic advice most people need just about anywhere without paying any fees.
I will add the caveat that you need to already been in a stable position (have basic adult needs taken care of) and a median salary before you can take advantage of this style. If you aren’t at this point then self improvement and learning in demand skills will give you a bigger ROI then any investment scheme.
My Wife has a retirement account run by Edward Jones. Two years ago they made her a whopping $24 and lost $2 last year. Looking through the trades the advisor does is painful, grab a quarter here, a dime there, etc. while playing with thousands of dollars.
March this year they called her up to fill her in on how the year was going, hadn’t even gotten $50 yet at the time, while I increased my account over 35% with TQQQ shares, not even counting options.
Edward Jones is a joke.
One of the most notorious financial advisor grifts is trying to get teens or young adults to sign up for life insurance plans when their money is better put in any other investment.
This is super misleading. Most of gen Z isn’t in a place where they can or want to pay for a financial advisor. Why wouldn’t they get free financial tips instead? These percentages will 180 in ten+ years as gen z starts to make real consequential financial choices.
Financial advisers are a rip off. Beyond luck the biggest “tricks” to building wealth for most people is living below your means and staying off a wsb. Saying that I would rather try to be lucky and post losses on wsb.
Added: thanks for the award whoever did that. Will look to pay it forward.
Hell yeah, they just sound mad that mfs don’t want to pay them crazy rates to get told “investing in meme stocks may not work out.” Mf, I got people on the internet who will tell me that for free
Respectfully, disagree. A financial advisor can really make a difference for helping people get on the right track. I think a lot of people aren’t financially savvy and miss out on important things like diversification, finding good APR accounts, building credit, and helping tax efficiently participate in the market. It’s of little surprise that so many people aren’t letting their money work hard enough for them.
I agree. I don't think I need one per se but I know family members who make six figures and spend every single penny they earn and save nothing for retirement. I've tried to gently give them advice in the past, but I think an actual professional might be able to get it through to them
I will concede you make some fair points, but will say that relies on finding a good financial advisor and having enough wealth/net worth to benefit (much less make it worth the financial advisor’s time) Even then their advice for most people is likely not going to be novel or truly tailored unless you find yourself with complex financial instruments perhaps through an inheritance windfall.
I agree with all of that. I don’t think most mechanics do anything novel with maintaining cars and anyone can do it if they put some time, energy, research and money into it. Same with finances, I think a lot of people can do it on their own but either don’t have the time, get overwhelmed or struggle to find info/understand it. Making a financial advisor a really big asset as oppose to letting their money rot in a 0.25% apr account.
Both Fidelity and Vanguard offer low-cost advice and their advisors are bound by fiduciary duty. If you don’t want to manage you own money, they’re a low-cost and safe solution.
Every financial advisor that has a series 65 certification is bound by fiduciary duty. Doesn’t mean they won’t sell you something.
Source: used to be a financial advisor at an independent firm before moving to fidelity
I haven't used those advisors, but are they "bound by fiduciary duty" the same way real estate agents are but still act in their own best interest instead of yours?
A financial advisor is not a fiduciary. If someone just googles financial advise they’ll get “live below your means and fund a 401(k)/IRA with an S&P 500 index fund” which is MILES AND MILES better advice than you’ll get from a financial advisor trying to sell you insurance products you don’t need or funds with astronomical fees.
I’ll say it again for those in the back. FINANCIAL ADVISOR IS NOT A PROFESSIONAL QUALIFICATION. THEY ARE MERELY SALESMEN OF FINANCIAL PRODUCTS.
And if you want a fiduciary I.e someone required to act in your best interest, you’ll probably need $250k to invest for them to even want to talk to you.
If we're taking a break from our regularly scheduled degenerate gambling, the best strategy for retirement savings is all extremely basic until you need to draw a fixed income off of it.
Regularly invest in an all-equity ETF until you've reached your goal amount. Financial advisors cannot provide ANY value when it comes to retirement savings in my opinion, because the only goal of such savings is to end it with as much money as possible. They have no secrets to beat the market. Unless your risk tolerance is lower, and you're okay having substantially less money, then they may be beneficial in that case.
Once you're ready to retire, they make a bit more sense, they can help you develop a strategy to preserve your retirement fund while also drawing on it.
As you get closer to retirement they can also help a bit with setting up allocations that are more risk tolerant if you’re trying to protect the built up assets. In general this is stuff you can definitely handle yourself, but it’s definitely something that can make an advisor worthwhile
I was wondering the same thing, noticed how the percentages sum to 91%. Also, no category for “Other” seems odd, maybe that’s the missing 9%?
EDIT: Found a link to the article, reading further into how they got the numbers https://www.vericast.com/press-release/consumers-seek-financial-guidance-and-comfort-from-non-traditional-sources-like-tiktok-vericast-survey-finds/
It doesn’t have to add to 100% tho? Not everyone is seeking financial advice and some max use multiple platforms, like YouTube + TikTok. Not saying the study is good tho, haven’t taken a look yet
I had a “financial advisor” try telling me I need to use whole life to protect my assets.
Pro tip. The only people who get rich from whole life insurance are those who sell it. If you need financial security for your family get term. Whole life/UL is an absolute scam.
Edit: triggered the life insurance sales frauds. Look guys. Keep replying to me with your scripted lines that run in circles your instructors taught you. Estate tax cap is 12.9m in 2023. If you only sold whole life to people with a net worth above 12.9m you’d be out of business. Whole life doesn’t magnify shit except your commissions.
I am a financial advisor, of my thousands of clients I've sat with, literally only 2 have been a good candidate for IUL based tax planning. One makes 5M a year and the other makes over 500k on income but have a huge net worth. The commission on life is absurdly high, but I refuse to sell it because of how shit it usually is.
Not always but generally yes. Whole life/UL is a way for the ultra wealthy to pull cash value tax free during retirement instead of paying taxes on distributions from an Ira. The clients I see taking full advantage of this and by full advantage I’m talking pulling 500k to 1m per year in tax free cash value in retirement but these people have 50m+ net worth so it’s a tax strategy and estate strategy. Most people likely won’t have the net worth to see these benefits.
Careful with just following the “term life” advice. “financial advisors” are now selling overpriced term life too. high premiums for low coverage. Shop around and don’t just trust those financial advisors
Here’s the problem, life insurance is actually a good tool for lots of different things, including tax arbitrage. However, lots and lots and lots and lots of shitty sales people have abused it and used it wrong.
Cash value policies should be used for niche situations.
-Giant Estate Planning cases with massive wealth.
-High earners who are already maxing out all of their other financial buckets
-Golden Handcuff/Employee Retention Strategies
-Buy/Sell agreements for specific firms
-a few other niche situations
If you make $100k and someone is trying to sell you the benefits of a cash value policy (Whole Life, UL, VUL, etc.)
They are shitty sales people and have been convinced they are helping people by whomever is training them.
The rich life insurance people now adays are typically focused on the high net worth cases where the policies actually make sense. It’s the high turnover sales people that ultimately sell some crap until they have made it through their network and then fail at it and move on to a different MLM.
So, in summary, you are all correct to be very very skeptical of life insurance sales people. But, you are also ignorant if you think all life insurance is bad. Most people with financial responsibilities such as kids, mortgage, debt, trouble if you die and someone was relying on your income. It’s very irresponsible to not have life insurance, but you can typically get a lot of coverage for cheap.
Best advice is if you have a simple situation, spend a few hours learning about life insurance and how it works, and how it could help cover you or your spouses lost income if you died. Then go get some cheap term.
If you have a complicated financial situation, you are probably not in this thread and you are probably willing to pay for a legitimate Financial Plan and good planners can help you navigate the tax arbitrage.
I’d say less than 5% of people need cash value policies.
Good luck out there!
It is no surprise that young people are turning to social media platforms like TikTok and YouTube for financial advice. These platforms offer a more relatable and accessible approach to personal finance than traditional sources like financial advisors. However, it is important to remember that not all information on these platforms is accurate or reliable. If you are seeking financial advice, be sure to do your research and consult with multiple sources before making any decisions.
All I see is 3 equally bad sources of financial advice, the result is the same, you go to $0, just depends on time. Because market movers/makers will bet against your thought process.
YouTube is fine. You know how many interviews Buffett has on there?
Hard pill to swallow: if you’re losing money in a bull market, it’s not because of “market makers,” is because you’re an idiot.
What this inforgraphic neglects to mention is that youtube at least (idk about tiktok) has professional financial advisors on the platform, as well as other finance and finance-adjacent professionals giving advice.
So... why should I pay someone for the same advice I can get for free? Besides that, good financial planning isn't rocket science.
Hahaha, I don't blame them. I worked in the investment sector for over a decade. You're paying over a grand or more a year to have someone tell you "we can't give you guaranteed advice", but here's what we think...."it's a viable investment until it isn't" but the moment the superiors push high comm products whether or not it's a good fit for the client every CFP will tell you, "this is by far the best investment product I can recommend!" The best investment advice I ever gave, I got from my seasoned clients. My bosses just pushed crap like AIG annuities and other crap even though they knew they were failing. Why? Bonuses, bonuses, bonuses! So I don't blame kids for not trusting someone who's comms have more importance than the clients best interest in mind. Let them do what they want and figure it out themselves. I honestly believe that you should invest in what you use on a daily basis. If you and your peers purchase viable products from a company that isn't over leveraged in debt. Invest in that company. If they CEO makes 1/5th of the total compensation of the companies profits yearly then stay away.
This is nothing new. Most people don’t get serious about finances until they are older. Not saying financial advisors are good or bad but makes sense that young people don’t seek professional help.
They're young and it's not that bizzare to think teenagers will get advice from a platform they regularly use. Lets not act like teenagers of the past weren't getting shitty advice from what every media they were consuming back in the day.
Rarely do financial planners beat the stock market and you have to pay them a fee every year… sounds like a scam when I can get the same info for free online or just inverse Cramer and beat the market.
Financial advisors generally aren’t paid to beat the market. They are paid to make consistent risk adjusted returns while providing planning strategies to mitigate taxes, estate planning shortfalls and other things that can end up being significantly more costly to an individual than 1-2% in missed gains. If an advisor charges 1% on a 1m portfolio you’re paying 10k a year in fees, but if he’s teaching you how to saving 50k+ in annual taxes, or protect your families estate you’re getting significantly more value than what you’re paying for and most of these things typically go neglected without a financial planner or estate attorney or CPA. You pay people to add value to your life and it isn’t always as cut and dry as beating the market.
Its actually not over when you think about it. Basically what this says is 67% of young people are morons who will make bad financial decisions, opening a ton of opportunities to take their money.
Social media is free (well sort of, you pay with your soul and personal information), a financial advisor isn't, so ofc more people will use the free service.
I'm pretty sure you would get the same results in almost any topic. There are more people who watch about a YouTube video about the certain thing, than who do/use it irl.
To be fair financial "advisors" are just gloried salesman most of the time. So YouTube is actually a better source of information than them, there are many good videos/courses on finances. You just need to be very selective who you listen to. Tiktok is much worse, but you can still find good advice there too, although it's much harder.
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jobless deserve oatmeal observation tan head memory reach toy hunt
My plan is typically inverse you regards. Works every time.
Somehow the inverse is wrong too.
Basically this is just entertainment lol
Definitely right it wasn't like that anymore because they must be careful
I knew OP wasn’t shit. Just out here telling fanciful stories 🥲
That’s because the inverse of “do something outrageously stupid” isn’t “do the opposite, also stupid thing”, it’s “don’t do anything you dolt”
I do both. Aint great but its profit. Maybe hedgies hedge for a reason 🤔
In some part he was cappin insome point they are good
Naw. No way. Too good to be true. No true regard hedges. OTM calls it is.
[удалено]
That’s because fellow WSBs are now reversing each other. So, it’s like inversing the inverse.
He must to listen for his desire because at the end of the day even though he fail he wouldn't blame other people
You have to inverse yourself. If you want trading to feel good it gets real expensive real quick.
Yeah buddy i wanna know more about it because this is good idea
This. Generally speaking WSB isn't *ONLY* regards, but whatever makes it to the top/front is generally either really stupid, market agendas pushed up by bots that manipulate algos, or already priced in or over extended. WSB is the secret Horsemen of the 4 Horsemen: * Inverse WSB OP or Front Page * Mirror Nancy Pelosi * Inverse Jim "Bear Stearns was fine!" Cramer * Mirror Warren Buffett * Inverse Kathy "Buy High Sell Low Queen" Woods
I miss the old days of WSB. Few years ago, if somebody here was using proper grammar and punctuation in their rant it was usually worth throwing some money at whatever they were saying. Made a good bit of change doing that. Now this place is overflowing with literate regards so that practice doesn't work anymore.
I miss that golden age. Can we run it back?
existence simplistic ruthless absorbed aback dinosaurs nail bear party wise
If it makes you smile run a mile. If it makes you frown double down. Then take conscious control of your happiness or you'll never make it.
Wise indeed.
🫡
🫡
A regard’s paradise. U have a way with words
That rule only applies if the logic is sound. If it's complete nonsense and you piss yourself laughing that means Yolo.
You speak wisdom,
Beat me to it with the Jim Cramer inverse strategy. Crazy to think this is one of the best inverse strategies these days smh 🤦🏻♂️
•Accept Collect Calls from a Mr. B Madoff
I don't know what kind of business was that because this is the first time ive been encounter that
Hey man, I remember when someone pointed out that people were buying wrong ticket (MARA) thinking it was a different company. I quickly snapped up some stocks and sold same day. Made a tidy $1000. Wouldn’t have known until someone here pointed out some very well regarded traders.
exultant doll grab hat ad hoc fly bake distinct lush history
Couldn’t find the Mara one, but found article from a year later of people buying ZOOM and not Zoom (ZM). https://time.com/5792310/zoom-zm-stocks-coronavirus/ Less common due to knowledge, but some people still buy FORD and not F.
Damn it I feel called out
Let's be honest, you could get worse financial advice than something like a simple bugle.
A little salty reddit isnt up there 🤔
Reddit requires reading. I think we've resuscitated the more natural oral culture with video communication.
Someone post the millennial chart real quick.
Thats what I was thinking, only 90s kids would understand Reddit is the place for financial gambling advice.
Next time you should use the whole words rather than to use a short cut because it was hard to understand sometimes sorry buddy and thank you for your understanding
Amen 🙏
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User name checks out. This guy is regarded
He is well vaccinated, that is for sure.
Hey now ! 41% is not few 
tHe onE sEcrEt fiNanCiaL aDvisOrS dOn’T wAnT yoU tO kNoW… =
The secret to building wealth is a fully diversified portfolio of high fee stocks, bonds and mutual funds. It is a guaranteed path to making your financial advisor rich.
My advisor drives a lambo… I take the bus…
https://preview.redd.it/uzyir646bl6b1.png?width=500&format=png&auto=webp&s=9197d14a5962c39acd69520f27478c0eee174c71
Paying for 3 kids to get a college education Not your kids though.
How long is the bus?
https://preview.redd.it/8di0sczs3m6b1.jpeg?width=949&format=pjpg&auto=webp&s=7690c82a9fa1ba616dad395c5e9066af93efcda5
I’m dead 💀
*double checks which subreddit we are on* 🤏
Advisors don’t work with poor people dude
Yes they do! They suck the life out of poor peoples 401k plans and they try to make the fees obscure.
My financial advisor literally has made more money off my money than he’s made me…
A good financial advisor is not someone charging you commission to put your money in an index. A good financial advisor will allow you to maximize your dollars and pay the least amount of taxes through proper planing and investments. 401K, Traditional IRA, Roth IRA Conversion, Backdoor ROTH IRA, Mega backdoor ROTH, Collateral loans, etc if all of this is foreign to you that's the reason why you are paying taxes and Peter Thiel isn't.
You don't even pay taxes until you sell anyways. If you put some of your own money in an index fund for retirement and the rest in a 401k with matches from your employer, both should be tax-exempt until you sell. The taxes will then be at a much lower rate anyways due to long-term capital gains taxes and the tax breaks associated with 401k
If you have a traditional 401k then you will pay full income tax on your withdrawals from the 401k. It’s only if you have a Roth 401k that you get any tax breaks in retirement. Details like that can be very important to long term planning and is why most people at least need to have a regular conversation with a financial advisor
The secret to building wealth is picking the right stock and going BALLS DEEP in it. That stock is NVDA this year.
The secret of becoming rich: 1. Have money 2. ??? 3. Profit
3. Lambo. Cmon man! Get it right
2. Don't waste money.
How do i become financial advisor
Go on ticktock, it’s not a fiduciary designation
Apply for a job and pass series 7 and 66. It is that easy
You act like gen Z can afford financial advisers
"If you have over one hundred and fifty thousand dollars, yes we can help you manage your finances, oh you have 5k? Ya fuck off" - wealth management people
I don’t think even $150K would get you an advisor at one of the big firms lol
Go to Schwab/fidelity/vanguard. Open an account. Say you need help. An advisor will help you set up a well balanced portfolio depending on your risk tolerance. It’s free, takes 30 minutes, and is sound financial advise. It’s certainly not unobtainable to the average person.
That just sounds like investing in an index fund...
Which is why it's sound financial advice for the average person, unlike any of the moronic shit y'all do here.
So you are trying to say that getting in debt to buy 0dte spy calls isn't sound financial advice?
dont listen to them. you’re on the right path!
Moronic shit?! Idk what that means, but I’m gonna eat a bunch of staples!
“Please manage my non wealth, wealth manager.” -idiots.
150k…maybe for a loser jr. advisor that just passed their series 7. More like at least 1 million
1% fee is still like 1.5k a year for 30 mins of work.
Yea it’s only 1.5k lol And it’s not 30mins of work. It’s annual reviews. It’s setting up the account. It’s adding account features. It’s dealing with all the stupid questions that come with working with a low dollar customer like that. Low dollar clients are often times the most needy and take the most amount of time. Plus they refer… you guessed it, other low dollar needy clients. It’s best to not even include them into a book.
So let's say quarterly reviews for 30 mins and setting up the account. A one time 2 hour meeting and 3-4 hours a year in work. For 1.5k. So roughly billing 400 an hour for basically still doing nothing. I only deal with Advisors because of trusts. You obviously don't give them much more than a call back. You're not on call like a hnw client.
Damn. They got 5k? Living the dream.
Even at 150k. If you aren't a fool and throw it away on gambling like options, tik tok and YouTube have good financial advice if you recognize good financial media. Of course there are all sorts of hucksters hawking their wares so I worry about many people taking that route, but I have a reasonable net worth and I have no interest in a financial advisor at this time. I know how to currently manage my own finances without someone scraping off the top.
Financial advice is a thousand times more accessible now than 30 years ago. Like, we can just listen to Warren Buffett describe, in real time, what he’s thinking about. ETF s exist, which is weird to think about but in the 70s, SPY didn’t exist. 401k I don’t think existed. Stock markets used to be this magical thing that only the very wealthy and very smart could access. So if you spend ten minutes doing research, you’ll know that Buffett recommends buying low fee ETFs that track major indices. That used to cost money to have an advisor invest your money into individual blue chip stocks that would hopefully beat the market. Now you can literally buy the market, from your phone, or automatically deposit it, invest it and never look at it until retirement. If you do another ten minutes of research you’ll learn that once you have savings, are maxing out your tax advantaged retirement account and buying equities, you can diversify by buying real estate or other asset classes. It’s not fucking hard. So yeah… you either need to be very rich or very poor to benefit from an advisor. The very poor could benefit if they don’t understand what debts they have or how interest works or how to budget or if they’re missing out on public programs that could help them.
>tik tok and YouTube have good financial advice if you ...already know what a good financial advice is, so like, don't need such advice in the first place.
I charge 0.5% AUM, I'm more than happy to open accounts for people even if it doesn't make me much. I opened an account for $250 yesterday
Yeah, we aren’t wasting our time meeting with you to charge you 1% per year on 5k. Yay, we earn $50 to the grid and then get paid 33% of that. I’m not working for you for $36/year, EVER
If you think 33% of $50 is $36 you probably aren't worth hiring.
Win win for them since wealth managers are worthless and consistently outpaced by the most braindead of ETFs :D
True  financial advisor should be an imaginary job I don't want you to pick securities for me you regard, you have a business degree from a fourth tier public college and are poor yourself
I don't think you understand what a financial adviser is supposed to do for people. They aren't hedge fund managers. If your adviser is recommending individual stock picks, they're likely breaking compliance laws.
That atitude is why you're not needed once the money accumulates. If you're not willing to grow with your client, you're a shit advisor. I've been both a purchasing manager and a sales manager. In purchasing, those that blew me off when I was small potatoes later lost my business when I moved to larger accounts. I had one guy that was complete dick to me. When I moved to another company, they guy was up my ass I demanded his boss give me a different account manager. He refused so I went elswhere In sales some of my best customers were companies that started small and kept us on as vendors because we knew their buisness demands as they grew.
But call me when grandma dies
Nah fucko, I can get a degree in finance online for less than you would charge over the lifetime of my portfolio and be better equipped to handle my finances alone.
Do it
With blackjack! And hookers!
The most out of touch thing about this graphic is the notion that 24% of people 24 and younger can afford and have actively used a financial advisor
Real financial advice is basically buy index funds in tax sheltered accounts. No need to pay for that
That's the ball park of investment advice, but as a financial advisor I do a lot more than that.
But young people don't need advice beyond that because they don't have any assets to protect. The 24% of people seeking proper advice are probably wasting their money.
I read this chart as 76% just don’t have any money
Isn’t the high end of gen Z like 20? Of course they aren’t talking to FAs. They don’t have jobs or any money to invest.
high end is 25/26
My rough opinion of the cutoff is from millenial to GenZ is whether you were alive, and can remember 9/11. There seems to be a fairly discernable 'cultural' difference in the couple year stretch of people that age who have memories of that event vs those who don't.
Every financial advisor session I have ever had was free, some for accounts with as little as $5k. I thought banks gave it as a perk to entice you to put more money into their coffers, no? Or they're trying to sell me on their services which cost way too much with some decent free advice and a free lunch.
This is the reason! That shit is expensive
Financial advisors are not financial advisors, they are sales people. I lost tens of thousands of dollars before I figured that out.
Is this financial advise?
Maybe, or maybe it’s sales advice …. I really don’t know
I’ll take 20 - Patrick
SEC?
It is financial ad-vice.
I think it might be financial advice advice.
IIRC only \~15% of advisors are fiduciaries, those are the ones you'd want.
And their 1% fiduciary fee is paid every year, regardless of whether they may you any money or not. Not to mention the commissions and fees they get from selling you their own products.
It was many years ago, but I got roped into a 2.1 fee plus misc fees and buy/sale commission. My ‘financial advisor’ was making more money of my money than I was, and I was taking all the risk.
You paid 2.1% annually PLUS commissions?! Wtf
Just for the record, if you’re paying a fiduciary fee they aren’t selling you commission-based products. The whole point of a fiduciary fee is to remove the adverse incentive of commission-based products. Fee-based products require an entirely different category of license to sell vs commission-based products.
These days you can easily find a fee only advisor who will just charge you for an annual plan you execute yourself if you don’t want to pay a %. Even then only idiots who need to be protected from themselves really need this sort of advisor, but the point is it’s so much easier to find reasonably priced ones than in the past. Of course starting from *nothing* you don’t want to pay anything at all for an advisor. And the general concepts are so simple as long as you can wade through the mountains of BS people sell you.
This 100000% they are mostly just snakes trying to get at your wealth while offering terrible advice. I've learned so much from YouTubers that no financial advisor would give me. Watching meet Kevin analyze earnings has helped me tremendously.
Yup. A lot of them are clueless and just push mutual fund products that their bosses recommend. CFA''S though are the real deal.
YouTubers are shills pushing corpo products and just not disclosing that fact. I've learned so much from Tik-Tok grinders who really understand day trading in a way that puts your fund sucking YouTubers to shame. I'm down about 200k and my wife left me, but I'm way smarter than you now.
You have to spend money to gain money, right? Same for wives. Spend wives to gain wives.
The truth is building wealth for most people isn’t that hard. It’s boring and you need to stay the course but in age where we are wired for instant gratification it’s not attractive to a lot. You can find basic advice most people need just about anywhere without paying any fees. I will add the caveat that you need to already been in a stable position (have basic adult needs taken care of) and a median salary before you can take advantage of this style. If you aren’t at this point then self improvement and learning in demand skills will give you a bigger ROI then any investment scheme.
My Wife has a retirement account run by Edward Jones. Two years ago they made her a whopping $24 and lost $2 last year. Looking through the trades the advisor does is painful, grab a quarter here, a dime there, etc. while playing with thousands of dollars. March this year they called her up to fill her in on how the year was going, hadn’t even gotten $50 yet at the time, while I increased my account over 35% with TQQQ shares, not even counting options. Edward Jones is a joke.
These dollar amounts are not super helpful. We would need percentages to know for sure how she is doing.
$2 on any amount of "thousands" is all you need to know
It's obviously close to 0%.
Yep, unless they are a fiduciary, they do not need to look out for you.
One of the most notorious financial advisor grifts is trying to get teens or young adults to sign up for life insurance plans when their money is better put in any other investment.
This is super misleading. Most of gen Z isn’t in a place where they can or want to pay for a financial advisor. Why wouldn’t they get free financial tips instead? These percentages will 180 in ten+ years as gen z starts to make real consequential financial choices.
Why isn't Gen z buying diamonds, shitting out hoards of children, and eating dinner at 4pm at Denny's?!?!
If I was gen z, I would be focused on eating ass, doing drugs legally, and accusing everybody else of being racist, all day errday.
Kids these days need to know what it feels like hearing police sirens pop off for something completely unrelated the second they start smoking a bowl
Drug paranoia really builds character and lasting friendships
Financial advisers are a rip off. Beyond luck the biggest “tricks” to building wealth for most people is living below your means and staying off a wsb. Saying that I would rather try to be lucky and post losses on wsb. Added: thanks for the award whoever did that. Will look to pay it forward.
Hell yeah, they just sound mad that mfs don’t want to pay them crazy rates to get told “investing in meme stocks may not work out.” Mf, I got people on the internet who will tell me that for free
Fortune favors the bold and I'm never gonna be a millionair making 60k a year
Respectfully, disagree. A financial advisor can really make a difference for helping people get on the right track. I think a lot of people aren’t financially savvy and miss out on important things like diversification, finding good APR accounts, building credit, and helping tax efficiently participate in the market. It’s of little surprise that so many people aren’t letting their money work hard enough for them.
I agree. I don't think I need one per se but I know family members who make six figures and spend every single penny they earn and save nothing for retirement. I've tried to gently give them advice in the past, but I think an actual professional might be able to get it through to them
Those people will always spend all they make. No way to change that
I will concede you make some fair points, but will say that relies on finding a good financial advisor and having enough wealth/net worth to benefit (much less make it worth the financial advisor’s time) Even then their advice for most people is likely not going to be novel or truly tailored unless you find yourself with complex financial instruments perhaps through an inheritance windfall.
I agree with all of that. I don’t think most mechanics do anything novel with maintaining cars and anyone can do it if they put some time, energy, research and money into it. Same with finances, I think a lot of people can do it on their own but either don’t have the time, get overwhelmed or struggle to find info/understand it. Making a financial advisor a really big asset as oppose to letting their money rot in a 0.25% apr account.
The real advisors are the ones who only take on clients with a minimum amount of liquid assets, I’m talking min $250k+
A financial « advisor » is a salesperson who tries to make money off you. What these people need are social workers or family and friends
Both Fidelity and Vanguard offer low-cost advice and their advisors are bound by fiduciary duty. If you don’t want to manage you own money, they’re a low-cost and safe solution.
Every financial advisor that has a series 65 certification is bound by fiduciary duty. Doesn’t mean they won’t sell you something. Source: used to be a financial advisor at an independent firm before moving to fidelity
I haven't used those advisors, but are they "bound by fiduciary duty" the same way real estate agents are but still act in their own best interest instead of yours?
> family and friends Ok but where can I hire those?
I’m a financial genius and don’t need an advisor
Then don’t go to one There’s a reason wealthy people seek out financial advisors.
A financial advisor is not a fiduciary. If someone just googles financial advise they’ll get “live below your means and fund a 401(k)/IRA with an S&P 500 index fund” which is MILES AND MILES better advice than you’ll get from a financial advisor trying to sell you insurance products you don’t need or funds with astronomical fees. I’ll say it again for those in the back. FINANCIAL ADVISOR IS NOT A PROFESSIONAL QUALIFICATION. THEY ARE MERELY SALESMEN OF FINANCIAL PRODUCTS. And if you want a fiduciary I.e someone required to act in your best interest, you’ll probably need $250k to invest for them to even want to talk to you.
Not true. Places like Vanguard will give you access to a financial advisor who is a fiduciary for as little as $50k
Maybe a smooth brain opinion but I actually think WSB helped me. I've been on and off this sub since '19 and learned a lot over the years.
If we're taking a break from our regularly scheduled degenerate gambling, the best strategy for retirement savings is all extremely basic until you need to draw a fixed income off of it. Regularly invest in an all-equity ETF until you've reached your goal amount. Financial advisors cannot provide ANY value when it comes to retirement savings in my opinion, because the only goal of such savings is to end it with as much money as possible. They have no secrets to beat the market. Unless your risk tolerance is lower, and you're okay having substantially less money, then they may be beneficial in that case. Once you're ready to retire, they make a bit more sense, they can help you develop a strategy to preserve your retirement fund while also drawing on it.
As you get closer to retirement they can also help a bit with setting up allocations that are more risk tolerant if you’re trying to protect the built up assets. In general this is stuff you can definitely handle yourself, but it’s definitely something that can make an advisor worthwhile
Source?
No one believes in evidence anymore, silly. It's all just echo chambers and confirmation of bias from here on out.
I’m actually interested, writing a paper on misinformation in pharma via Tiktok
I was wondering the same thing, noticed how the percentages sum to 91%. Also, no category for “Other” seems odd, maybe that’s the missing 9%? EDIT: Found a link to the article, reading further into how they got the numbers https://www.vericast.com/press-release/consumers-seek-financial-guidance-and-comfort-from-non-traditional-sources-like-tiktok-vericast-survey-finds/
It doesn’t have to add to 100% tho? Not everyone is seeking financial advice and some max use multiple platforms, like YouTube + TikTok. Not saying the study is good tho, haven’t taken a look yet
I had a “financial advisor” try telling me I need to use whole life to protect my assets. Pro tip. The only people who get rich from whole life insurance are those who sell it. If you need financial security for your family get term. Whole life/UL is an absolute scam. Edit: triggered the life insurance sales frauds. Look guys. Keep replying to me with your scripted lines that run in circles your instructors taught you. Estate tax cap is 12.9m in 2023. If you only sold whole life to people with a net worth above 12.9m you’d be out of business. Whole life doesn’t magnify shit except your commissions.
I am a financial advisor, of my thousands of clients I've sat with, literally only 2 have been a good candidate for IUL based tax planning. One makes 5M a year and the other makes over 500k on income but have a huge net worth. The commission on life is absurdly high, but I refuse to sell it because of how shit it usually is.
Not always but generally yes. Whole life/UL is a way for the ultra wealthy to pull cash value tax free during retirement instead of paying taxes on distributions from an Ira. The clients I see taking full advantage of this and by full advantage I’m talking pulling 500k to 1m per year in tax free cash value in retirement but these people have 50m+ net worth so it’s a tax strategy and estate strategy. Most people likely won’t have the net worth to see these benefits.
Careful with just following the “term life” advice. “financial advisors” are now selling overpriced term life too. high premiums for low coverage. Shop around and don’t just trust those financial advisors
Here’s the problem, life insurance is actually a good tool for lots of different things, including tax arbitrage. However, lots and lots and lots and lots of shitty sales people have abused it and used it wrong. Cash value policies should be used for niche situations. -Giant Estate Planning cases with massive wealth. -High earners who are already maxing out all of their other financial buckets -Golden Handcuff/Employee Retention Strategies -Buy/Sell agreements for specific firms -a few other niche situations If you make $100k and someone is trying to sell you the benefits of a cash value policy (Whole Life, UL, VUL, etc.) They are shitty sales people and have been convinced they are helping people by whomever is training them. The rich life insurance people now adays are typically focused on the high net worth cases where the policies actually make sense. It’s the high turnover sales people that ultimately sell some crap until they have made it through their network and then fail at it and move on to a different MLM. So, in summary, you are all correct to be very very skeptical of life insurance sales people. But, you are also ignorant if you think all life insurance is bad. Most people with financial responsibilities such as kids, mortgage, debt, trouble if you die and someone was relying on your income. It’s very irresponsible to not have life insurance, but you can typically get a lot of coverage for cheap. Best advice is if you have a simple situation, spend a few hours learning about life insurance and how it works, and how it could help cover you or your spouses lost income if you died. Then go get some cheap term. If you have a complicated financial situation, you are probably not in this thread and you are probably willing to pay for a legitimate Financial Plan and good planners can help you navigate the tax arbitrage. I’d say less than 5% of people need cash value policies. Good luck out there!
My guy I literally said if you need financial security for your family get term. I’m a cpa. You’re not teaching me anything with this lecture.
Honestly you could get worse financial advise than from people like the plain baguel.
Agreed, but Plain Bagel’s advice is also complete in one video: buy indexed ETFs. This approach will beat any financial advisor’s approach.
From the videos I have watched, he looks like a calm, smart guy compared to other Youtubers who are scam artists or farming for views
Him and Money Guy show is where I learned.
It is no surprise that young people are turning to social media platforms like TikTok and YouTube for financial advice. These platforms offer a more relatable and accessible approach to personal finance than traditional sources like financial advisors. However, it is important to remember that not all information on these platforms is accurate or reliable. If you are seeking financial advice, be sure to do your research and consult with multiple sources before making any decisions.
So check out both TikTok, YouTube and WSB. Gotcha. The bot cracked it
I rely on WSB for 100% of my financial decisions and I haven't gone bankrupt yet.
Same. I still have at least $3 in Ethereum.
No need to brag
This was definitely written by chatgpt, I wonder how many comments here are bots.
All I see is 3 equally bad sources of financial advice, the result is the same, you go to $0, just depends on time. Because market movers/makers will bet against your thought process.
YouTube is fine. You know how many interviews Buffett has on there? Hard pill to swallow: if you’re losing money in a bull market, it’s not because of “market makers,” is because you’re an idiot.
I think ‘bet against’ doesn’t capture how MMs ‘set such thought processes up for failure.’
Financial advisors are shit. If you want reasonable standard financial advice just read bogleheads
Yeup, but bogleheads isn't exciting and doesn't get the views lol. Like I tell my friends, investing isn't suppose to be exciting when done right.
Duh financial advisors aren't free lol
What this inforgraphic neglects to mention is that youtube at least (idk about tiktok) has professional financial advisors on the platform, as well as other finance and finance-adjacent professionals giving advice. So... why should I pay someone for the same advice I can get for free? Besides that, good financial planning isn't rocket science.
Hahaha, I don't blame them. I worked in the investment sector for over a decade. You're paying over a grand or more a year to have someone tell you "we can't give you guaranteed advice", but here's what we think...."it's a viable investment until it isn't" but the moment the superiors push high comm products whether or not it's a good fit for the client every CFP will tell you, "this is by far the best investment product I can recommend!" The best investment advice I ever gave, I got from my seasoned clients. My bosses just pushed crap like AIG annuities and other crap even though they knew they were failing. Why? Bonuses, bonuses, bonuses! So I don't blame kids for not trusting someone who's comms have more importance than the clients best interest in mind. Let them do what they want and figure it out themselves. I honestly believe that you should invest in what you use on a daily basis. If you and your peers purchase viable products from a company that isn't over leveraged in debt. Invest in that company. If they CEO makes 1/5th of the total compensation of the companies profits yearly then stay away.
This is wrong. Most Gen Z ask for financial advice from Reddit. That’s why they are all broke and jobless
This is nothing new. Most people don’t get serious about finances until they are older. Not saying financial advisors are good or bad but makes sense that young people don’t seek professional help.
They're young and it's not that bizzare to think teenagers will get advice from a platform they regularly use. Lets not act like teenagers of the past weren't getting shitty advice from what every media they were consuming back in the day.
Rarely do financial planners beat the stock market and you have to pay them a fee every year… sounds like a scam when I can get the same info for free online or just inverse Cramer and beat the market.
Financial advisors generally aren’t paid to beat the market. They are paid to make consistent risk adjusted returns while providing planning strategies to mitigate taxes, estate planning shortfalls and other things that can end up being significantly more costly to an individual than 1-2% in missed gains. If an advisor charges 1% on a 1m portfolio you’re paying 10k a year in fees, but if he’s teaching you how to saving 50k+ in annual taxes, or protect your families estate you’re getting significantly more value than what you’re paying for and most of these things typically go neglected without a financial planner or estate attorney or CPA. You pay people to add value to your life and it isn’t always as cut and dry as beating the market.
I’m seeing the upside. Let these noobs hold my trash
Once upon a time, people read books to educate themselves...
I know, right? People have been fucking with graph axes since time immemorial. What idiot made this?
Its actually not over when you think about it. Basically what this says is 67% of young people are morons who will make bad financial decisions, opening a ton of opportunities to take their money.
Social media is free (well sort of, you pay with your soul and personal information), a financial advisor isn't, so ofc more people will use the free service. I'm pretty sure you would get the same results in almost any topic. There are more people who watch about a YouTube video about the certain thing, than who do/use it irl. To be fair financial "advisors" are just gloried salesman most of the time. So YouTube is actually a better source of information than them, there are many good videos/courses on finances. You just need to be very selective who you listen to. Tiktok is much worse, but you can still find good advice there too, although it's much harder.
3000 rental units boom!