Don’t Be Surprised If You Can’t Convince Your Friends To Invest With Index Funds

“Wow,” you say, “Your financial advisor has a really nice car.” Your friend smiles. She knows what’s coming next.

“I guess you help make those massive car payments.” She just smiles again.

She invests in actively managed mutual funds. No matter what you say, she won’t fire her advisor and switch to low-cost index funds.

You try all kinds of logic. But logic isn’t working.

You explain that her advisor gets paid commissions or a trailer fee to pick actively managed funds. You say he might get kickbacks from fund companies, like trips to Bermuda or a really nice bonus.

But she still doesn’t budge.

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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1 Response

  1. Jen says:

    I had a new collegue casually mention to me about investing in property and I mentioned about my stock and bond ETFs– he was interested and said he also wanted to invest and that someone from a place called de Vere had contacted him use the day before! I was so happy to be able to ‘warn’ him and pointed him to this blog!

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