Mar 25, 2021
While there is no way of knowing what the best portfolio is,
empirical data and financial economics have fixed the problems
surrounding investing. But if we’ve fixed investing, then what’s
the point of financial advisors? Today we dive into this topic and
reveal why financial advice is still valuable to the everyday
investor. We open the episode by touching on our movies and books
for the week, as well as the latest from the financial world. We
then explore why, despite their failure at making predictions,
experts are so important across many industries. After defining
what financial advice is, co-host Benjamin Felix systematically
unpacks the value that financial advisors provide as they relate to
key areas including goal-setting and quantification; asset
allocation; understanding your human capital and insurance needs;
selecting the right financial products; and tailoring strategies to
tax considerations. Later, Benjamin highlights how financial
advisors can help investors overcome their biases while helping
them align their investing goals with living a meaningful life. We
close the episode with our Talking Sense segment, followed by the
bad financial advice of the week. When so much data is available,
it’s necessary to revisit the relevancy of financial advisors. Join
us to hear why they continue to play such a valuable role in
helping people meet their investing goals.
Key Points From This Episode:
- Cameron shares the birthday message he received from Seinfeld’s
‘Soup Nazi.’ [0:00:35]
- We discuss community feedback and the documentary The Last
- Details on financial educator Paul Merrimen, our next guest.
- Updates on podcast merchandise and shipping times.
- Elon Musk and Mark Carney; hear about our books of the week.
- We talk about the latest from the financial world.
- Introducing today’s planning topic: What is financial advice?
- The role of financial planners when index fund investing is so
easily available. [0:19:45]
- Exploring what financial advice is and what it isn’t.
- We unpack the link between goal-formation and quantification
and sound financial advice. [0:24:35]
- The challenge of trying to predict what will make us happy in
the future. [0:27:07]
- Happiness, life satisfaction, and goal-setting as it relates to
financial advice. [0:29:00]
- Pricing your goal and avoiding the hedonic trap of never
‘having enough.’ [0:32:00]
- Asset allocation as key to the value of financial advice.
- Quantifying human capital and your insurance needs.
- Why knowledge of financial products is the basis of financial
- How taxes impact investing strategies.
- Why managing wealth and getting financial advice is an
iterative process. [0:40:02]
- How financial advisors help you eliminate biases that affect
- The many reasons that people seek expert advice.
- We summarise the arguments for the value of financial advisors.
- Advice on determining a financial advisor’s level of expertise.
- Hear our answers to the profound questions posed in our
‘Talking Sense’ section. [0:51:02]
- Courtesy of TikTok, we share our bad financial advice of the