Investment Advice, Advisor, Pollock discussed on Freakonomics Radio - Everything You Always Wanted to Know About Money (But Were Afraid to Ask)

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And eighty five percent in stock funds and as you get older now you're gonna probably want more and bond funds and less in stock funds because he ill the fear losses going to be greater when you have a very large amount of money obviously it can be really hard for the average person to take in and execute all this investment advice on their own so you might consider hiring a financial advisor but pollock says not just any financial advisor rule number six make your financial advisor commit to the fiduciary standard with the do sherry standard is a federal requirement designed to ensure that financial advisers don't sell clients products that are better for themselves dan the clients it basically says all the advice you're giving me and all the products at your offering me are designed to maximize my own financial wellbeing you're not being paid by anybody except me i understand in a transparent way your financial incentives and if you don't have the fiduciary standards a little bit like walking under the ford lot and saying do you think i need new car yet or do you think i should keep driving the oone for another couple of years there was a wonderful study done by some uh researchers at harvard were they just sent out actors who had different kinds of retirement savings and they would go into storefront financial firms and they would just say hey here's what we're doing tell us if we should do something different.

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