Enjoy this conversation with Rick Ferri who shares his experience in financial services over the past 30 years. Rick started as a stock broker then went on to an asset management firm and now is a financial consultant (with a 6 month waiting list!) He discusses the motivation behind these moves and why he thinks providing financial advice on an hourly basis is the optimal model. You will also learn about a popular personal finance Q&A forum at Bogleheads.org where Rick plays a leadership role. 

Details:

• 0:00~1:17 Introduction
• 1:17~5:42 Current work as a financial advisor
• 5:42~8:48 What ‘fiduciary’ means
• 8:48~9:47 Finding a financial advisor
• 9:47~13:36 Types of investing mistakes clients often make  
• 13:36~16:10 From fighter pilot to a financial advisor
• 16:10~17:39 Experience landing on aircraft carriers
• 17:39~21:04 Investing is like a birthday cake
• 21:04~29:54 Three legs of the investing stool
• 29:54~30:22 A word from NGPF
• 30:22~35:06 How Target Date Funds work
• 35:06~39:49 The Bogleheads community
• 39:49~43:25 Vanguard’s unique structure
• 43:25~46:31 Favorite John Bogle story
• 46:31~47:19 Conclusion

Resources:

• Rick Ferri
• Bogleheads on Investing Podcasts
• Bogleheads
• The John C. Bogle Center for Financial Literacy

Quotes:

• "The fees are a real problem. You can buy mutual funds that track the US stock market for practically nothing, for free for a matter of fact, or your broker could sell you one that charges 1.5%. It's the same stock market, the same stocks, nothing's different just that the fees are much higher in the fund that you're going to get from the broker."

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About the Authors

Ren Makino

Ren started interning at NGPF in 2014, and worked part-time through high school and college. With his knowledge growing alongside NGPF, he joined the team to work full-time after graduating from college in 2020. He is also the producer of the NGPF podcast. During his free time, he likes to try out coffees from different roasters across the world.

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.