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> For financial advisors, the single best question I have is about returns. Ask potential advisors what returns you can expect through them. If they guarantee a
by kspaans 11y ago
> For financial advisors, the single best question I have is about returns. Ask potential advisors what returns you can expect through them. If they guarantee a specific return, don't work with them. If they guarantee a return that beats the S&P 500, also don't work with them.
Good advice! But small nitpick: when asking about returns remember to say "after fees". A fund that tracks the S&P500 will cost you about 0.05% of assets per year. Some other funds that try to be fancy, or advisors who manage your portfolio may charge you 1% of assets per year. A fund will often have a "benchmark index" that it is trying to match or beat (such as the S&P500). Ask about performance relative to this benchmarket.