Just the thought of managing their own portfolio is enough to overwhelm a lot of people, and for good reason. There is so much information out there about investing, and a lot of it is confusing, contradicting, and sometimes even wrong. Because of that, most people end up doing one of two things:
- They don’t invest at all
- They hire a financial advisor to do it for them
The bad thing is, these are the two worst choices you can make. Yet so many people go down one of these paths because they just don’t know any better. At some point, maybe even you have felt like these are your only options when it comes to investing. We’re going to show you that there is a better way.
You see, investing doesn’t have to be as hard and as complicated as the industry would want you to believe.
“Do I really need to invest?”
YES. Yes yes yes. Unless you want to work at a job for the rest of your life, you need to be investing. Bar none, it’s the best way to grow your money over the long term.
Think of the money you make from your career as the seeds for your financial future- if you want your seeds to actually grow to their full potential, you have to plant them.
“Fair enough. But why can’t I have a financial advisor take care of it for me? I don’t understand how any of this stuff works.”
Ever wonder why stock brokers and financial advisors make so much money? It’s because the fees they charge are deceptively enormous, and the general public doesn’t understand how crippling they really are over the long term.
Traditionally, financial advisors collect their fees by trimming a certain percentage off the top of your portfolio every year (regardless of whether your investments actually make any money). This amount is usually somewhere between 1-2%. Sounds like a pretty small slice, right?
Surely you have heard about the power of compound interest… how, given enough time, it can grow your money from a small nest egg to something that’s really life-changing. Well, compounding has just as much of an effect on the downside, too. If you want proof, check out the next example.
A Look at Just How Crippling Management Fees Can Be
The graph below shows two portfolios with identical performance over a 20-year span. The only difference between the two is one of the portfolios is being charged a 1% management fee every year, and the other one isn’t.
The results are actually astounding. Over the course of 20 years, the investor that was able to do it himself saved nearly $137,000 in fees. Stop and think about that for a minute.
That is some serious money. That’s college tuition for your kids. Your dream car. A higher standard of living during your retirement years. Money to start a non-profit and impact your community. But unless you make the decision to manage your own investments, it’s money that will ultimately line the pockets of your financial advisor.
Is investing a skill worth learning? We think numbers speak for themselves.
By paying fees high fees every single year, your portfolio is swimming against a current that it shouldn’t have to.
“Sounds like a lot of work to learn and do this myself though…”
This is the biggest misconception about investing. This stuff does not have to be hard. It is so much easier than you think. Of course, you’d never guess this by listening to the industry pros.
Remember, the more complex they make things sound and the more confused they keep you, the more you feel like you can’t do it without them- and the more money they end up making. But that story is about to change.
The truth is that nobody cares more about your money than you do. If you really want to create the best outcome for you and your money, you owe it to yourself to become your own investment manager. And a VTX Premium Membership gives you all the tools you need to be able to do that.
Designed for people who are new to investing and recognize the value in taking it on themselves, this program will guide you every step of the way. And we do it in a way that you can actually understand! No complicated finance jargon.
We even go the extra mile and show you sample portfolios with real investment funds that you can model your own accounts after. And we let you know when we are making changes to our models, so you won’t be left behind. These portfolios are simple, efficient, and low-maintenance.
Investing can be as simple or as complicated as you make it, and we have chosen to make it simple.
As the old Chinese proverb goes, “The best time to plant a tree was twenty years ago. The second best time is now.” If you are finally ready to get started with investing, do it with our team in your corner. Click below to learn more about how our program can help you.
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You'll usually see me on here writing articles about how to save (and make!) money, how to make smarter investment choices, and how to have a better overall financial life. If there's ever a topic you'd like to see me cover, shoot me an email!