Is Cheaper Better??

There has been a huge amount of attention from the financial media and advertisers that costs are the number one enemy of investors. While this is true in many cases. Buying investments based solely on cost is a mistake for most if not all investors.

These advertisers tell investors that they have all the tools they need to build a successful portfolio. All this at a very low cost to them. These advertisers say ‘why pay of an adviser when we can do it for you much cheaper.

The result is you keep more money for yourself. You eliminate the ‘unnecessary’ middle person. These advertisers say these advisers do not have your best interest in mind. They want you to believe all advisers add no value to your portfolio, just added costs.

Again while this is true in many cases a true fiduciary adviser can guide you to a successful financial goal. In most cases this would not be possible doing it yourself.

As an example. If you wanted to build a new house. You could go to any discount retailer, like, Menard’s or Home Depot or Lowe’s or any of the other ‘do it yourself’ retailers.

You can find everything you need to build a house in these retailers. You can even talk with their onsite ‘experts’ and learn what to do. But if you have all the necessary materials delivered to your home site. What do you think would happen? Where would you start? You could google it. Can you imagine the finished product? How long do you think it would take to build your house?

Let’s disregard the fact that your bank would probably not approve the loan if this were your plan. Even though it is cheaper.

Some construction friends of mine tell me that having a good general contractor is vital in building the structure on time AND on budget.

A general contractor is one responsible for ordering the right materials and delivering in the right sequence. They are also responsible for arranging the right contractors to do the various duties. Like plumbing, excavating, electrical, mason, carpentry, etc..

You could do this yourself and save money in the short run but in the long run it would cost more. And in some cases much, much more.

With regard to investing finding a good fiduciary adviser/investor coach is vital to reaching your long term financial goals. Like the general contractor your coach is responsible for putting the pieces together in the right order.

And more importantly supplying the necessary discipline to stay on track to your financial goal(s).

In both cases general contractor or investor coach/fiduciary adviser, find one you trust. One that understands your goals.