253. Investing: Breaking the 1% Fee Habit, Risk, and Staying the Course
On this episode of CFO at Home, Vince speaks with Andy Parrillo of Parrillo Investors about the importance of investors understanding the fees that financial advisors charge to manage their money, and the true all-in cost of investing in mutual funds and ETFs. Andy shares a bit on the history of these fees, and advocates for investors to have their advisors provide performance reports showing their returns after fees, against the performance of the appropriate benchmark. Andy also discusses how investment portfolios can have too little risk as well as too much, investing behavioral pitfalls, market timing, fear-driven decisions, and staying the course through downturns. For more resources, including Andy·s book Beat the Wealth Management Hustle, visit parrilloinvestors.com
Key Topics:
01:10 Why Fees Matter
02:57 Legacy Fee Model
04:58 Index vs Advisor Value
05:44 Fee Calculator Demo
10:35 Compounding Fee Drag
13:16 Basics of Staying Invested
15:03 Measuring Risk Tolerance
17:44 Behavioral Finance and Fear
19:22 Bear Markets and Staying Course
23:11 Advisor Value and Advantage
24:23 Diversification and Global Shift
27:12 DIY Strategy and Buffett
28:52 Market Timing Myth
30:02 Closing Thoughts on Knowledge
Key Links:
Contact the Host - vince@thecfoathome.com
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