MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom)

by Anthony Robbins

The mutual funds sold to me are charging me astronomical fees that could strip me of up to 70% of my future nest egg. Over any sustained period of time, 96% of actively managed mutual funds are underperforming the market (or their benchmarks). I am being charged 10 to 30 times what it would cost me to own a low-cost index fund and “become,” or mimic, the market. The returns the mutual funds are selling are typically way better than the returns I actually receive since they are marketed as time-weighted returns, not dollar-weighted returns. Dollar-weighted returns are what we actually get to keep/spend, whereas time-weighted returns are what fund managers use to fuel advertising. And as the grand finale, your broker will look you in the eye and tell you that he has your best interests at heart. Because more than likely, he sincerely believes he is helping you. He doesn’t understand, nor has he even been educated about the impact of what we described above. Heck, he is probably following the same advice he is giving you for his own personal finances.