Jumpline MAG_Winter 2026 - Flipbook - Page 44
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Investments
Mark Buckley, Ret.
Ask about total fees. Don’t settle for “about one percent.” Get
it in writing, including fund expenses.
feel con昀椀dent in every 昀椀nancial decision you make.
5. The Real Test: Who Bene昀椀ts Most?
To 昀椀nd out whether an advisor is truly acting in your best interest, ask yourself a simple question:
Compare net returns, not sales pitches. A 7% return with 1%
fees equals 6%. That adds up fast.
Who bene昀椀ts most from the strategy being recommended—
you or them?
Demand transparency. If your advisor can’t show you the internal expenses of your plan, 昀椀nd one who will.
When an advisor recommends a managed account that
charges an annual fee, often around 1% - 1.5% that fee supports
the advisor’s ongoing service, monitoring, and 昀椀nancial planning work each year. By contrast, certain annuity or index-based
strategies may not generate ongoing management fees but can
provide valuable features such as downside protection or lifetime income options.
Understand Annuities. Don’t dismiss them blindly. There are
annuities today with different options that you can customize for
your situation offering upside potential, downside protection and
often with minimal or NO Fees.
Each approach has its place. The key is understanding how
your advisor is compensated and ensuring that the strategy selected, whether a managed account or an annuity, aligns with
your goals, risk tolerance, and long-term 昀椀nancial plan.
Conclusion:
That’s the heart of the issue. Incentives drive behavior. But in
today’s advisory world, advisors are bound by Regulation Best
Interest, which means they have to focus on the clients best interest rather than their own incentive. Always remember that.
6. What Buffett Would Say About It
Buffett has been clear about both simplicity and honesty.
If I had to put it in Warren Buffett’s terms, in my opinion, he’d
probably say this: “If an advisor can’t explain an investment to
you in a single, simple paragraph you understand, you have no
business owning it.” And in my opinion, he’d likely add with that
trademark grin, “If someone’s paycheck depends on you not understanding it, that’s your cue to walk away.”
Buffett’s message is simple—clarity is the ultimate sign of honesty. If you can’t explain your investment strategy to a fellow
昀椀re昀椀ghter over a cup of coffee, it’s probably too complicated to
trust with your hard-earned money.
Fire昀椀ghters understand this principle intuitively. You don’t take
orders from someone who’s never been on a real 昀椀re. Likewise,
you shouldn’t take 昀椀nancial advice from someone who pro昀椀ts
more from managing your money than you do from owning it.
7. The Fire昀椀ghter’s Playbook
Here’s how to keep your 昀椀nancial plan as strong as your bunker gear:
Focus on alignment. Work with advisors who make money
when your plan works, not simply when your balance exists.
Financial Integrity Is the Real Asset
At the 昀椀rehouse, integrity isn’t optional, it’s who you are. In
昀椀nance, it should be the same.
Unfortunately, it is my belief that the 昀椀nancial world has many
complex fee structures and may not be the most suitable for
some individuals. Fire昀椀ghters need to know that managed money is not the only option, and that fee-heavy portfolios aren’t always in their best interest.
Sometimes the best solutions are the simplest:
Low-cost index strategies for long-term growth potential.
Strategies that are focused on tax-deferred growth and lifetime
income protection. Such strategies can be found in chapter 23 of
my upcoming book “ Beyond The Firehouse”
Clear, transparent planning that prioritizes your 昀椀nancial freedom, not your advisor’s paycheck.
Warren Buffett’s wisdom still stands strong:
“The investor of today does not pro昀椀t from yesterday’s growth,
but from tomorrow’s discipline.”
If you carry that discipline into your 昀椀nancial life the same
way you carry it onto the 昀椀reground—methodical, steady, and
focused on protection—you’ll build a retirement that’s safe, sustainable, and free from the 昀氀ames of hidden fees.
Be Safe!
Mark Buckley, ret. MDFR and Financial Professional
Winter 2025 | JUMPLINE Magazine
