11-11-2012, 10:44 AM
This guy pays about 10% of his monthly income for premiums. Seems like a lot to me but would that be within the prescribed norms for a financial planner? Plus what's with financial planners and managed funds? Aren't fees a big reason for fund underperformance? I can understand if they sell these to clients for higher comissions but when it comes to their own portfolios? What are they smoking?
Also, if think of this guy as a Company, it's like one of those companies that bring in a lot of revenue but have little over in terms of Net Profits. And as shareholders, that's the point we should be concerned with right? In this case, the only 'hope/expectation/merit' I can think would be betting on revenues rising much faster in the near future (at 39, this guy is at least halfway through his working life so even then the odds are probably 50/50?).
Of course, he has his situation with the kids so it's undeniable that his expenses would be higher than most. Still, it makes you wonder how those earning much less than him but with kids having even more serious problems live.
Still, not a sure way to join the realms of the financially free if you ask me.
I think I would prefer to be earning half his income but having expenses at a much lower level (1/4 of his).
What do you guys think?
Also, if think of this guy as a Company, it's like one of those companies that bring in a lot of revenue but have little over in terms of Net Profits. And as shareholders, that's the point we should be concerned with right? In this case, the only 'hope/expectation/merit' I can think would be betting on revenues rising much faster in the near future (at 39, this guy is at least halfway through his working life so even then the odds are probably 50/50?).
Of course, he has his situation with the kids so it's undeniable that his expenses would be higher than most. Still, it makes you wonder how those earning much less than him but with kids having even more serious problems live.
Still, not a sure way to join the realms of the financially free if you ask me.
I think I would prefer to be earning half his income but having expenses at a much lower level (1/4 of his).
What do you guys think?