Advisors Will Put Their Interest Before Yours
A study has noted that a very high percentage of Americans believe that their financial advisor always has their best interests in mind. The financial decisions an advisor will make are more likely influenced in how much they will earn rather than what you will make.
It is important to know that advisors are allowed to put their interests before yours. Unlike the case of a fiduciary, some advisors might sell you an investment that will cause you losses but makes them money.
Advisors can sometimes be more interested in the commission they make rather than making your life better. To prevent this, hire a fiduciary since there is a requirement that they make their investment portfolios public.
Stocks Are Less Volatile Over Long Periods
Despite the popularity of stocks, graphs have shown that they are not safe in the long run. There is a common misconception that the riskier an investment, the more profitable it can be. This is false, especially with stocks. Over long periods, stocks provide a fairly stable yield, thereby earning you the same returns as less risky investment options.
Over a period of 20 years, stocks can perform similar to safer options but with the added risk of you losing all your money. The belief that stocks provide high returns, in the long run, is not always true, so you might be better off picking a safer investment option.
