Your Survival Guy

Preparing your investments and family for when disaster strikes.

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Are Your Investments Treated Like a Loyalty Card Number?

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By Alexandr Bognat @ Adobe Stock

OK, you read here recently how Vanguard is the new BlackRock, and they are expanding the world of “big box store” investing. Vanguard, BlackRock, and others want to control everything you own. They want to control your investments, taxes, estate planning and more, and—of course—charge you for it.

But are you better off? You thought you were retired or soon to be retired, sitting on a beach in St. Somewhere when all of a sudden, you’re trying to keep track of what’s really going on.

Imagine you’re grocery shopping. You’re stuck in a faceless big box store. It’s a nightmare. The meat department isn’t talking with produce, and the bake shop doesn’t know you have a gluten allergy. The checkout guy is looking at the clock, not the gluten-free cupcakes in your cart, knowing exactly who they’re for. But it’s not his fault. His job is to get your rewards card number, not to spend time getting to know you. The guys upstairs know exactly what you spend every month, but they only know you by loyalty number 555666333. This is what’s happening with your money.

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What will never be lost in the investment business is the importance of the personal relationship. You can’t buy trust with a loyalty card. Trust is earned. Loyalty cards save money. You decide what to buy.

Now, I’m not trying to be unfair to the big box finance guys. They’ve found themselves stuck selling commodities like zero-cost index funds. To survive, they bundle them up in target-date funds stuffed in 401(k)s, or they stuff your investments in them through their advice services. It’s like everyone’s got the same grocery list, making the same bland meal night after night after night. That’s no way to live.

Action Line: Don’t worry about the big box investing houses. They won’t starve. But do understand what’s going on. Don’t let them get fat off you. Push back a little.

“Cleanup on aisle six. We’ve got loyalty card number 555666633 asking for help.” When you want help escaping from the big box investment houses, I’m here. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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