Financial services marketing is built to convince you to hand over your hard-earned money. While these companies can help you grow your wealth, that growth often comes with fees, limitations, and no guarantees of strong returns.

If you’re looking to improve your investing, understanding how these systems work is a key part of that journey.

 

Are They Managing—or Just Charging You for It?
A common message from financial firms is, “We’ll manage your money for you.” It sounds appealing: professionals handle your portfolio, and you save time. But there’s a catch.

Roughly 80% of professional fund managers underperform the S&P 500. That means you could end up with subpar returns—even after paying management fees. So while it may feel like you’re outsourcing the hard work, you could end up working longer down the line because your investments didn’t grow the way they could have.

 

What’s Considered a “Good” Return?
Another common claim is that you should expect annual returns of 8% to 15%. Sounds decent, right? But in reality, many individual investors achieve better results by investing in companies with strong performance and less complexity.

As of this writing, stocks like Costco are up over 50%, and Amazon is up more than 88%. The takeaway? Those 8%–15% projections may not reflect market potential—they may reflect underperformance or conservative benchmarks built around managed products.

 

Products That Prioritize Packaging Over Performance
Financial services firms often create investment products that sound tailored to your needs—like 529 college savings plans or age-based retirement funds. But these often come with restrictions, extra fees, and underwhelming results. For example, many 529 Plans have delivered only single-digit returns over the past decade. Target-date funds, too, often trail the S&P 500 while still carrying additional fees. These products are heavily marketed because they’re easy to sell—but that doesn’t mean they’re your best option.

 

So What Can You Do?
Improving your investing starts with education. That doesn’t mean avoiding all financial services professionals—but it does mean knowing how they’re compensated and understanding the true cost of their recommendations.

Many advisors and firm representatives are incentivized to promote products that boost their company’s revenue—not necessarily your returns. That’s not inherently bad—but it’s something to be aware of.

You can work with professionals and still take control of your financial future. The key is knowing how to evaluate products, fees, and performance so you can make smart decisions that align with your goals.

 

Want to Learn How to Invest Smarter—Without Relying on Sales Pitches?
My investing course is designed to help you grow your wealth with clarity and confidence. It’s self-paced, beginner-friendly, and gives you the tools to evaluate investment opportunities, understand performance metrics, and build a strategy that works for you—not just your advisor.

👉 Click here to learn more and join my community today.

Better investing isn’t about rejecting help—it’s about knowing how to make informed decisions.