Not On My Nickel presents revolutionary change in retirement investing: Transparency and bona-fide financial education, with regular performance reporting— the key to superior retirement performance
Not On My Nickel’s Number One Retirement Investing Rule to Achieve Superior Performance
How do you achieve the best retirement performance? Do not take advice or pay an assets under management fee to any “financial advisor” that does not file regular performance results, against a widely published index, with the Securities and Exchange Commission, SEC. Only make informed choices.
Take the time to get the proper education and the tools to make informed decisions. It is simply a one-time, up-front investment in time to learn what you need to do to make an informed choice on how to invest your retirement savings.
The Media and the Financial Advice Industry
The media is a master of convincing the public they need financial advice. Why? It generates advertising revenue for them from financial services firms. The latest media blitz focuses on the need for the public to have access to “financial advice.” Financial advice does one thing—it detracts from your investment returns. There is yet to be a published study that can show it will increase your returns. Ignore the media hype in articles such as these two:
“A Start-up Aims to Bring Financial Planning to the Masses” New York Times, July 26, 2013.
“401(k) Plans Add More Personalized Advice” Wall Street Journal, September 5, 2013
Not On My Nickel can state unequivocally your retirement savings returns will increase if you take the time to understand just a few key concepts. Your returns will increase in two ways:
(1) You will have ready access to the top performing portfolio mutual fund managers through information and education and (2) you will save the costs for the advice fees that are simply a drain on your retirement savings. They do not add extra value, by definition. They are financial intermediary fees that can easily be avoided through transparency, use of education, proper tools and effort.
Why You Do NOT Want to Pay a “Financial Advisor” a Fee for Investment Advice: It is Conflicted and Not Bona-fide Financial Education
Let us first distinguish between investment advice and financial planning and budgeting. If you want help with learning how to prepare a budget or financial plan, pay a “financial planner” an hourly fee to learn how to do a budget or a financial plan. Follow these simple rules:
- If you need life insurance, buy term insurance from a top rated insurance company for 20 or 30 years. Never buy “cash value” life insurance. Learn about life insurance online. Here is one source: Life Insurance – Wikipedia. Do not take any retirement investment advice from a life insurance salesman, even if they say there are a “financial advisor”. They are not trained in portfolio management.
- If you need a will, go directly online and learn how to draft a will or go to an estate attorney. There is no reason to pay a middleman, “financial advisor” to tell you that you need to go to an attorney to draft a will.
- If you need tax advice, go directly to an accountant.
- If you are in debt and need assistance, there are many free consulting services there to help, such as Debtor’s Anonymous.
Read Helaine Olen’s Book for more background information on the dangers of the advice industry, Pound Foolish. Exposing the Dark Side of the Personal Finance Industry.
If you need investment advice, hire a portfolio manager, who is a fiduciary, registered with the SEC to manage your retirement assets. A financial advisor, a CFP, is in 99% of the cases, not a fiduciary, even if they are registered with the SEC. They are not specialists in investments and portfolio management. Deal only with a specialist, a portfolio manager, registered with the SEC who provides you five- year and ideally, ten- year performance returns, that have been filed with the SEC.
“Financial advisors” DO NOT file performance returns with the SEC and they do not specialize in portfolio management. Financial advisors are generalists. Go directly to the best, the portfolio manager for your investment advice and day-to-day investment management. Not On My Nickel’s research service puts you directly in touch with a short list of the top performing specialists, the mutual fund portfolio managers and keeps you updated on these portfolio managers and their mutual funds, on a regular basis.
Join us tomorrow for Part II of our Blog: Best Retirement Performance Comes from Education, Transparency, Not Conflicted Financial Advice. Or email us today to get started on your curriculum that will shape your retirement investing future. Ask your employer to incorporate Not On My Nickel’s experiential curriculum in your workplace.
Here is the link to the Not On My Nickel Slide Show for Employers