Mike
Carruthers:
Can
any financial adviser or guru really promise you a higher return
on your investments?
Bert
Whitehead :
No they can't and that is "The Big Lie" - Give
Me Your Money And I'll Make You Rich. It's what Wall St is based
on … stock brokers and investment managers claiming that they
know how to get you a higher rate of return.
Attorney
Bert Whitehead, a fee-only financial advisor for over 35 years
and founder of the Cambridge Alliance of Advisors.
The
only way to promise you a higher rate of return is to ask YOU
to take more risk. And taking higher risk with your investments
is a ticking time bomb. But people feel inept when it comes
to their money so they think they are better off turning decisions
over to someone else. Really all you need is a market rate of
return on your investments and that you can get with low cost
index mutual funds.
Bert
believes taking risks is fine, however,
People
should focus their risk on what they know best. If you have
your own business that's where you should focus your risk. If
you know real estate that's where you should focus your risk.
But with investments, you should have a diversified portfolio
I have my clients in using US Government stripped treasuries
which are very boring and UN sexy but are very safe and low
cost. And certainly with an index fund you know you are going
to get exactly market return.
Bert
has a special offer for Something You Should Know listeners
concerned about their finances. You can find a link
on our website, somethingyoushouldknow.net.
I’m Mike Carruthers and that’s Something You Should Know.
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