Author Topic: Convince friend he pays investor fees?  (Read 834 times)

clairebonk

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Convince friend he pays investor fees?
« on: June 15, 2018, 01:07:43 PM »
This is the conversation I had with my friend. I sent him an email with a breakdown of our investments and what we paid in fees. How do I convince him to be diligent and find out what is going on?? He is a smart engineer.


So you saw my finance email?

Yes, but we don't pay our adviser anything because she took on [wife] pro bono. There are zero fees or anything in our statements.

I don't know of anyone who pays zero money for financial planning so you should stay with her forever.

Yeah we get invited to these fancy events and stuff.

Well, somebody is paying her if it's not you, how is she making her money?

She probably takes a cut of the fund.

So you are paying her? Don't you want to know if you are or how much?

No, I don't want to rock the boat.

That's how financial planners make money. They hide all their fees.

Yeah, I see that happens with my parents.

Sibley

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Re: Convince friend he pays investor fees?
« Reply #1 on: June 15, 2018, 01:19:37 PM »
Your friend is currently uninterested in finances and investments it sounds like. You can't change that. Only he can decide to be interested. If you push, you'll be overstepping, so don't. Just be open to discussions or questions.

clairebonk

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Re: Convince friend he pays investor fees?
« Reply #2 on: June 15, 2018, 01:37:08 PM »
I agree to some extent, but he is the one that brings up investments. He will say things like “our portfolio is doing really well”, “I am happy as long as I am getting 5%”, “our advisor keeps moving money around to avoid the next market crash”, “our advisor bought some gold”. So I keep my mouth shut as much as I can but it hurts to hear all of this and when I feel he is bragging that’s when I try to ask the harder questions.

So I think you are right, he wants to live in the blissful ignorance that he pays nothing and gets amazing results and there is nothing I can do to change his mind until he is ready to step out of that haze.

e34bb098

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Re: Convince friend he pays investor fees?
« Reply #3 on: June 15, 2018, 04:15:25 PM »
Your friend is willfully ignorant.

Thus, it's pointless to try to convince him.  Let him brag about his "amazing" performance.  It doesn't hurt you in any way.  If he tries talking coworkers into moving their money to his FA, then by all means talk to them privately.

If he tries to talk you into moving your money to his FA, then ask to see his statements so you can verify performance and fees.

Otherwise, let it go.

MrSal

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Re: Convince friend he pays investor fees?
« Reply #4 on: June 15, 2018, 04:48:42 PM »
tell him to check performance vs a benchmark ... even a monkey can make 5% year in a 15-20% year bull market...

He'll change his mind once the next bear market comes...