4 Ways Your Financial Advisor Might Be Wasting Your Money!

This is part 2 of our 2-part series on “Reasons Your Money Won’t Last If You Have The Wrong Financial Advisor”.

For part 1, click here.

Inside, we’ll be covering:

• What to look for, and what to avoid in Financial Advisors
• How to spot a Financial Advisor who will waste your money
• How to make educated decisions on your financial future without being an expert

Let's get started...

Reason 1: Your Financial Advisor's Plan Depends on an Erroneous Expectation of Lifespan

Social Security reports that 1 in 4 people aged 65 will live beyond 90 years old. That's 25 years of retirement if you retire at 65. If you retire at 55, that's 35 years or more. 

Most people today have this fixation on “one million dollars," believing that millionaires have it made. But you know that's not true. If you have between $1 million and $70 million in liquid assets and end up living 35 years in retirement with no new income, you will have to be very, very smart to make that money last the whole way. 

This may be shocking to read, but we can cite numerous cases of people with even more than that who lost it all in spite of having a financial advisor. 

Your Financial Advisor’s Plan Denies the Certainty of Future Stock Market Corrections

In the 2000s, the net gain over the entire decade was essentially zero, depending on your investments. Two big implosions and a decade of anemic growth in between led to essentially no gains for millions of investors. It was the “lost decade." 

And yet, many financial advisors continued to pitch clients with projections about their  investments that assumed an 8% annual growth. Did you make 8% annually over that decade? 

The market will implode again. No one knows when, but it will happen. And it will happen during your retirement, maybe at the worst possible timing. 

How will you protect yourself from risk when the market implodes?

There is a way. It requires a historically-backed planning process that hardly any financial advisors understand, and what we call the Efficient Frontier. We'll explain these critical concepts soon. 

Your Business Sale Falls Short of Your Advisor's Assumptions

If you have a business (or more than one), and plan to sell it before retiring, what happens if you can't get anything close to the sale price you've been counting on? Does your financial advisor investigate your expected sale price or help with the process? 

You may have achieved great success with your business, but soon you'll have a whole new set of problems to deal with and questions to answer. If your financial advisor expects your money to last, the last thing they should want is for you to sell your business for half the price you thought it was worth. 

But what if it happens? 

What Will Happen Next Year?

Forget all the dire warnings of financial apocalypse for a moment. What about next year? Do you want to pay for your kids (or grand kids) college? How about their weddings? Or helping them with their first down payment on a house? 

Each year brings new uncertainties, new choices, and new expenses you weren't anticipating. As long as you're working, these don't bother you much. But when they happen 15 years into retirement, you feel the sting. 

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And that wraps up our “Reasons Your Money Won’t Last If You Have The Wrong Financial Advisor” series.

For more in-depth tips on choosing financial advisors and securing your generational wealth, click below to download our free ebook:

“The Ultimate Guide To Choosing The Best Financial Advisor For Investors With $3 Million To $70 Million In Liquid Assets”

In case financial security and serenity are on your mind and you’d like to have an honest, no nonsense or selling involved, chat with an unbiased fiduciary expert then feel free to reach one of Pillar’s co-founders, Hutch Ashoo or Chris Snyder, at 1(800) 669-6780.