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:
00:00 Legacy Fees Explained
02:32 Low Cost Funds Matter
03:53 Do Advisors Add Value
04:39 Fee Calculator Demo
09:30 Compounding Fee Drag
12:11 Dollar Cost Averaging Basics
13:58 Risk Tolerance Scoring
18:00 Staying the Course
23:18 Diversification Beyond US
25:11 Ads Versus Transparency
25:43 Risk Calculator and DIY
26:26 Stocks vs Bonds Basics
27:08 Fear and Market Timing
28:50 Taming Fear with Knowledge
29:42 Questioning AUM Fees
31:28 Finding Low Cost Options
33:39 Why 1 Percent Persists
37:37 Disrupting Wealth Management
38:48 Investing With Joy
41:01 Inflation and Retirement Reality
42:36 A Fixed Fee Advisory Model

Key Links:
https://parrilloinvestors.com/
Beat the Wealth Management Hustle

Contact the Host - vince@thecfoathome.com

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