Updated almost 7 years ago on . Most recent reply
I don't trust my Financial Advisor, what should I do?
I've had a roth IRA and a mutual fund thru Northwestern mutual for just under 2 years. I'm 23, I wanted to get started early so I can buy a business with the money some day. I don't trust the guy that is in charge of my account. My 2 accounts are up less than $100 COMBINED during the lifetime of my contributions (23 months) . Should I take my money out and invest in Robinhood myself? Anyone have any good suggestions? I'm open to anything, please let me know what you think!!
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
I have a friend that works for Northwestern Mutual. Limited insurance type products is what he sells. Hardly a 'financial advisor' IMO.
My boys have growth stock mutual funds and index funds. They were up 20% in 2017, down 8% in '18, up to all-time highs in '19.
If you were in equities as you should be, you should be up way more than $100 unless the account value is $1000 or something real small. What's the % gain?
My guess is fees are eating your lunch. 80% of FAs don't beat the market anyway, so may as well invest in no load index funds.
Exceptions to index funds would include a large, complicated estate. Check out The Simple Path to Wealth by JL Collins or I Will Teach You to be Rich by Ramit Sethi and get your investments on auto-pilot (without gotchas).