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What to Do If You’ve Already Got An Advisor

While you should never give up financial control, there are times that you need the guidance of an expert advisor.

What about if you’ve already got an advisor who’s fondling your assets and showing you his pie chart?

Well, it’s time to have ‘the talk’.

Actually we’re Aussies and we don’t like confrontation. So take the passive aggressive approach by sending them this email — and blame me.

Dear (advisor’s name)

I’ve decided to do a review of my finances.

Could you please do the following three things for me:

  1. Print me a statement that clearly shows my annual percentage return since we began, net of fees.
  2. Benchmark my return against the relevant accumulation index for the same period.
  3. Provide me with an itemized list of fees (expressed in both dollars and percentages). Include any and all ongoing fees, commissions and administrative costs that I’m charged.

Kind regards,

Be warned, though.

If you send this email — and over the years I’ve suggested to thousands of people to do it — you can’t put the genie back in the bottle. When you see in black and white how much you’ve paid over the years, you’ll become a raging Tinder swinger.

Be dumb smart

One of our biggest fears is looking dumb in front of others, and experts can use that against you — whether that be a mechanic, a doctor or a financial planner. However, some of the smartest and wealthiest people I know spend most of their time looking dumb.

Case in point, one of the wealthiest investors I know has a standard line when he’s looking at a deal:

‘You’ll have to take it slowly with me; I’m kind of simple.’

When you’re dealing with anyone regarding money, you should ask lots of dumb questions until you get the answers you want. You’re in control. It’s your money.

And if you get the feeling someone doesn’t have your best interests at heart, or you’re just getting a bad vibe — walk away.

Always trust your gut.

This article is written by by Scott Pape, author of ‘The Barefoot Investor: The Only Money Guide You’ll Ever Need.’ To learn more about Scott Pape’s step-by-step formula on how to become financially free at any stage of life, click here.

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