How Investment Advisors Rip You Off | Ramit Sethi (How To Get Rich)

I've been guilty too of the $3 questions vs. the 30K questions... I toiled at Target (literally) whether to buy the organic grapes (I didn't) and found out TODAY that my 403b financial advisor commission is a whopping 1.62%!!!!!! I am a teacher and can totally relate to Ramit relaying the story of his mother being a teacher and how teachers really don't understand the financial aspects of their retirement accounts... He is absolutely 100% right! I am now teaching myself about finances and trying to get out of this actively managed 403b, but learned that to do so, I would need to pay a "surrender charge" of over 2K... If Ramit ever wants to have a teacher on his show- I'm raising my hand! 🙂 Thank you, Erika, for such worthwhile content!

Nothing wrong with buying a house, problem is most people buy houses they want not houses they can afford. Buy a cheap house.

Your rent is the maximum you will pay -- this month. Or for the rest of your current agreement. Landlords are increasing rents to near predatory rates at the time of this writing. In my area I know examples of rent going from $1750 to $2200 or even $2300 in the past two years. Meanwhile my mortgage has stayed exactly the same (though my taxes did go up due to the market) Great episode!

Thank you so much. I am 38 and trying to come back from the onset of catatrophic illness 5 years ago. I ended up homeless. It's been so scary and I am now disabled, but I am slowly starting take back control of my finances. Just listening to podcasts on this topic gave me panic attacks 6 months ago... The simplicity and detailed explanations here are so helpful, and not panic or shame inducing.

You know someone is bright when they can take complex things and explain them simply. Very helpful.

- Cook at home - Use bus and uber - Walk when you can - When you buy something ask yourself - > How many times will I actually use it? - > Could I just borrow it from someone? Buy classic clothing trends that won't go out of style and take care of your clothes.

Home ownership is the most secure item that I could have bought. The peace of mind of a family base is priceless & it increases in value & the owner gains bargaining power.

Good advise overall. However, going into retirement my house will be paid for and I will have no more housing cost. Additionally, it’s on 6 acres and has appreciated greatly. So if I need any extra funds in retirement, I could easily down size and use the extra cash for retirement. You can’t do that if you always rent.

Love the perspective that mortgage is the minimum amount you pay versus rent is the maximum you pay. Thanks Erika for the value added contents!!

Wow Erika, had not heard of this guy and I think he is so awesome. Most all (scratch that- ALL) financial gurus want to tell you how to live your life based on THEIR values. Ramit is refreshing in that he says, as long as you can afford it, you decide what is worth spending your money on. I am in the same boat (no pun intended) as far as cars, don't really car much about them as long as they're safe and reliable and start every day. But I did not always think that way, had many fancy cars in my life, and that is out of my system. And totally agree with the flying thing, expect for me it is about 2.5 hours max for coach. That will pretty much get you anywhere in the US if you're flying north/south, but if going from coast to coast I upgrade. Once you have enough, you can't take it with you. Great interview Erika, you've been killing it lately. Happy for your success.

Wow! It's so fun to see how fast you've grown your you tube channel because of all the value you bring to us. I remember when you posted you first few videos. Keep it up! Great content

Thanks Erika! This is your best podcast for me. Packed with valuable information all through ❤

It's a very good and important point about spending more on things you love and not spending anything on things you don't. The longer I live the more I appreciate that principle.

Rohit taught me that a home is worth only 25% of my income… so if buying a home is more than that, I take too much risk… and he is right! My rent is exactly 25% of my take home salary- great!

This was so eye-opening and made investing seem so easy and simple. Great episode!!!

Erika and Ramit, thank you so much for this very informative and thought provoking podcast. I appreciate having actionable items. I am totally on board for keeping that which you love and get rid of that which doesn't actually mean something to you. Your insight on Financial Advisors was simply empowering! I've been struggling with whether to hire someone or not. Keeping things simple is awesome. :)

The things that I took away from you both: 1). Invest in your health and things that bring you joy (I love books and what I do is read them for free from the library and purchase the ones I know that are valuable and want to read again and again) 2). That 1% fee for financial advisors blew my mind. I liked Ramit's suggestion on hiring someone on a hourly basis to go over your investment portfolio and automating everything else. Excellent podcast. I read Ramit's book after you suggested it. I read the Rich Dad book after you recommended it too. Hey Erika, I think it's time for you to write a book. I would read it for sure! 😊 P.S. I am watching Ramit's Netflix show right now!!! 😉

I do property management. Most people take for granted how much work and money it takes to repair roof, HVAC, landscaping, security, electrical, plumbing, fire suppression, pool maintenance.

I think that your advice should be directed at higher learning professionals in big cities. I'm a working Joe and I made a Smart buy on a house and sold it for four times what I paid for it. I didn't stretch my budget to buy the house, I didn't spend lavishly on upgrades, and I did most of the work on it myself.

When i was 24 i bought my home for $1800 in a nice neighborhood...i bought 3 vending machines for $1800 that paid my rent monthly...then retired at 42 from investing