Advisor, Pollack, Harvard discussed on Freakonomics



And stocks but as you build up a little assets maybe by the time you're twenty five or thirty you're probably gonna wanna be fifteen twenty percent and bond funds and eighty five percent in stock funds and as you get older you're gonna probably want more and bond funds and less stock funds because he the fear of loss is 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 financial advisor but pollack says not just any financial advisor rule number six make your financial adviser commit to the fiduciary standard but fiduciary standard is a federal requirement designed to ensure that financial advisers don't sell clients products that are better for themselves than the clients basically says all the advice that you're giving me and all the products that you're 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 so a little bit like walking onto the ford lot and saying do you think new car yet or do you think i should keep driving the old one for another couple years there was a wonderful study done by some researchers at harvard where 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 and some of them had crazy investments that were say all in the stock in there.

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