4 Reasons Why the S&P 500 is Your Best Financial Advisor

If you are considering hiring a financial advisor, here are four compelling reasons why the S&P 500 might be the best advisor you’ll ever have.

1. Automatically Gives You the Winners

As companies grow and perform well, their stock prices increase, which in turn increases their weight in the S&P 500. This means your investments automatically tilt towards the winners without you having to lift a finger.

2. Votes the Losers Off the Island

The S&P 500 is regularly updated. Companies that falter in market value or financial stability can be and are removed. That’s like having a financial advisor constantly curating your portfolio, ensuring that only the strong survive.

3. Market Leaders Across Diverse Industries

These aren't just any 500 companies. They're 500 market leaders across diverse industries, representing a broad swath of the US economy. This diversification is built-in risk management.

4. Significantly Cheaper Than Traditional Advisors

While a traditional financial advisor charges about 1% of your assets annually, the fees on a well-diversified S&P 500 index fund can be under 0.05%. Over the long haul, those savings can add up to hundreds of thousands of dollars.

When you're investing in the S&P 500, you're not just putting your money into a fund; you're leveraging an incredibly dynamic, self-cleaning system that's diversified and cost-effective. Maybe the best financial advisor is not human after all.

If any of this is helpful, like and follow, and I’ll keep trying to get you one step closer to where you need to be.

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