Podcast Episode 291: Are These Financial Strategies Overrated?

When it comes to financial strategies, there are three that might not be as advantageous as you might think: tax advantages, rates of return, and commission-based investment accounts. In this episode of the podcast, Eric Hogarth, CFP® will explain why.

Tax advantages are often overrated. While they can provide some relief on your tax bill, the savings may not be enough to make up for the added complexity of filing taxes. Plus, many retirees consider moving states in order to save on taxes but rarely does that reason alone provide enough incentive to pack up and leave.

Rates of return are also often overemphasized as a key financial strategy. While they can be useful in assessing the performance of various investments, they rarely tell the whole story. Additionally, historical rates of return do not guarantee future results.

Finally, commission-based investment accounts are widely overrated as well. While these types of accounts offer benefits such as lower fees and personalized advice, the downside is that the advice may not always be in the investor’s best interest.

The bottom line is, when it comes to financial strategies, it pays to do your research and consider all options before making any decisions. Tax advantages, rates of return, and commission-based investment accounts can all have their positives – but they also might not give you as many benefits as you might think.

If you want to discuss these planning items or any others, take advantage of our complimentary Money Map review.

Here are a few of the things we discuss in this episode:

1:51 – Are tax advantages overrated?

4:20 – What states do people in New England move to in retirement?

5:57 – Story about a conversation we had with a client recently

7:34 – Are rates of return overrated?

9:38 – Are commission-based investment accounts overrated?