Optimal Finance Daily - Financial Independence and Money Advice 2966: Why The Banks Are Out To Get You by Wanderer of Millennial Revolution on Index Fund Passive Investing
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Dec 11, 2024 Wanderer, a financial expert and blogger from Millennial Revolution, dives into the deceptive tactics of banks and financial advisors. They explain how these institutions resist index funds due to the threat they pose to their profit margins. Emphasizing the importance of financial literacy, Wanderer urges listeners to recognize misleading advice and take control of their investments with simple, low-cost strategies. The conversation highlights that anyone can invest in index funds without needing special licenses or permission.
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Reader's Lie
- A reader asks Wanderer how they bought index funds without a fund manager, as their bank told them it requires a license.
- Wanderer replies that this is a lie and recounts a similar experience where their bank lied about index fund availability.
Finance Industry's Goal
- The financial industry's primary goal is to profit, often at the expense of customers.
- They achieve this through high-interest debts, unnecessary loans, and high-fee investment products.
Bank Advisor Incentives
- Bank advisors push high-fee products for higher commissions, regardless of performance.
- They dislike index funds because their low fees threaten this commission-based model.
