The Most Expensive Birthday Card You’ll Ever Get


My granddad had a financial advisor who always sent a card on his birthday. At the time, I thought it was so nice that a financial professional would take the time to write a hand written card wishing my granddad well and thanking him for his business. After spending years in the financial services industry, I realize now that in most cases, when your advisor remembers your birthday, it’s the most expensive birthday card you’ll ever get. Continue reading “The Most Expensive Birthday Card You’ll Ever Get”

The Innovation that Could Kill Vanguard

innovation that could kill vanguard
Direct indexing smokes traditional indexing after taxes. Vanguard should be very worried

A small startup named Wealthfront has created an innovation that could kill Vanguard, the company that popularized the index fund in the mid 1970s. Ever since, the investing world has never been the same. I saw a report that Vanguard had taken in more than 100% of the industry cash flow for 2016. That means that the ENTIRE mutual fund industry has fewer deposits this year in aggregate than Vanguard. That’s because customers are withdrawing their money out of high fee funds. Sitting atop trillions of assets under management, what does a behemouth like Vanguard have to fear? It’s called direct indexing.  Continue reading “The Innovation that Could Kill Vanguard”

Why It’s So Freaking Hard to Get Low Cost Quality Financial Advice

hard to get low cost quality financial advice

Have you ever wondered why it’s so freaking hard to get low cost quality financial advice? I wondered that too, but then I had a stunning reality check. During the months of August and September, I was seriously considering becoming a financial advisor myself. I started looking into the process, and I discovered traditional “wealth managers” charge so much money for their services. Regulations, insurance requirements, and business expenses virtually eliminate all possibility of low cost advice. Continue reading “Why It’s So Freaking Hard to Get Low Cost Quality Financial Advice”