Aug. 19, 2025

Beat the Wealth Management Hustle: Take Back Control of Your Money

In this eye-opening episode of Beyond Confidence, host Divya Parekh sits down with institutional investor and author Andrew Parrillo to challenge everything you think you know about wealth management. If you’ve ever wondered whether you’re paying too much for investment advice, this episode pulls back the curtain on the costly truths of the financial advisory world—and reveals how you can reclaim control.

Beyond Confidence is broadcast live Tuesdays at 10AM ET on W4WN Radio - Women 4 Women Network (www.w4wn.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Beyond Confidence TV Show is viewed on Talk 4 TV (www.talk4tv.com).

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The topics and opinions expressed on the following show are

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solely those of the hosts and their guests, and not

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This is Beyond Confidence with your host w Park. Do

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you want to live a more fulfilling life? Do you

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want to live your legacy and achieve your personal, professional,

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and financial goals? Well? Coming up on dvparks Beyond Confidence,

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you will hear real stories of leaders, entrepreneurs, and achievers

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who have stepped into discomfort, shattered their status quo, and

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are living the life they want. You will learn how

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relationships are the key to achieving your aspirations and financial goals.

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Moving your career business forward does not have to happen

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at the expense of your personal or family life or

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vice versa. Learn more at www dot Divpork dot com

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and you can connect with div at contact at givpark

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dot com. This is beyond confidence and now here's your host,

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div Park.

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Good morning listeners. So I'm calling from New York and

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I got to share with you. It's I'm at the ocean.

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An ocean gives you such beautiful vibes and it just

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brings you so much joy and that calm and connects

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you with the nature. So it's important to take the

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time out of your life and connect. So let's bring

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in our guest today. Our guest is Andrew. Welcome Andrew.

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Thank you.

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So Andrew shared with us a moment or a time

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very probably you know, sometimes in your early youth, then

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you remember going on and was there some person or

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a moment that left to mark on you.

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That's a really good question. I don't know if there's

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a person trying to think of that one. That's a

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that's a good question. But yeah, actually I had a

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It just so happens that I had a mentor when

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I was first getting into a bank training program who

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wanted me to be in the investment department. And he

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was a very experienced, very well respected person in that organization.

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For a senior person and he kind of he supported my,

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you know, my my efforts in the investment function at

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that trust department a bank. So I was very fortunate

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to have that support and it opened my eyes to

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an opportunity that I pursued for the rest of my

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adult life.

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Yeah, so I was like, how did you get into finance?

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Well, that's how I got into it because he introduced me,

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and I didn't. I didn't know anything about it, but

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it was fascinating to me and and a challenge. And

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I was fortunate to be put into a position at

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a very early stage of my career that was a

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very important, responsible position, and I just took it from

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there and I just I just did it. I don't

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know how to say that, but I just, you know,

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I just thought, this is this is good, this is fun,

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this is helping people. I understand what's going on here.

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And I was making I was helping my clients. So yeah,

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it was just it was very gratifying. And you know,

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I was married with you know, with I was married

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at that I didn't have any kids at that point.

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I did shortly thereafter, So yeah, I know, it looked

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like a good opportunity to me. So I just pursued it.

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Oh fantastic, So can you share with us. You know,

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people may be starting out, people are different periods of

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their life journey. How can they get into investing?

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Well, okay, the first first thing I'm going to say

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is what my experience and this is this is what

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I've discussed in my book. And my experience is that

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most people that you know, that I talk to anyway,

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are intimidated about investing. They say it's chaotic, they don't

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understand it, you know, they want to leave it up

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to somebody else. And you know, and I understand that.

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And money is a very is a very u it's

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a it's a very touchy subject for most people. Most

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people really don't want to deal with it. They don't

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wake up in the morning thinking about difficult decisions they

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want to make with their money. So what I would

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say is that the the and this is just you know,

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this is just my experience and history. But the best

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way to preserve the purchasing power of your money is

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not by putting it into a bank where you could

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almost be positive that the dollar, the value of your

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of your the purchasing power of your money, will decline

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as inflation goes up because the interest rate you're going

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to get in a bank is not enough to offset

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inflation and taxes, but investing in stocks will now. But

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that scares people because it's uncertain, it's risk it's deemed

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to be risky. And one of the reasons one of

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the things I wanted to do in my book is

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to help people develop a mindset to overcome the anxiety

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and indeed look at the opportunity to save your money

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and invest it by the way to preserve its value,

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as as as something that's that you should you should

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do with confidence and joy. And in fact, I wanted

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to name my book invest with Confidence and Joy, but

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my editors said, no, you can't do that. You can't

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you can't do that. I said, well, okay, but that's

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what I want to do, because that's the way I

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look at it. It truly is. And you know, being

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mindful of your own anxieties is really important, and you

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have to try to separate those that emotional reaction of

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being fearful of losing money to the fact that over

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time the stock market really has been very, very productive

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for people who have invested in it on the long term.

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And I based my book on behavioral finance and my

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practice on behavioral finance and have and one of the

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things that one of the most famous behavioral finance people

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who's now passed passed on, Daniel Konnoman, said in his

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book Thinking Fast and Slow, is that people are two

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and a half times more concerned about losing money than

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making money. And that is true. I have found and

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I don't know that that how he exactly derived the

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two and a half times more concerned, but he did,

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and I accept that, and that's where and that's where

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people get hung up. They have to understand that not

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taking risk is a risk to your financial wellbeing. And

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the other thing they have to understand is you are

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your own chief financial officer. Whether you have somebody helping

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you or a wealth manager or a friend, you still

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make the decisions. So you have to take charge. So

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just take I hate to say this, take ownership because

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literally it is ownership of your money. So you have

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to accept that responsibility and discharge it, you know, for

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your benefit.

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And that's so we can kind of sit here and

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say right that, like, yeah, go take charge of that ownership.

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And so many times what happens is that there is

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that knowledge gap. People want to take it, but then

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there is that gap. So we are going to explore

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people investors at different times in their lives. Let's say,

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you know, we're talking about young professionals, young entrepreneurs in

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the twenties and they're getting started. What are some of

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the things that they can and keep in mind as

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they are working through their mindset and how can they

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get started?

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Well, I think the most important thing, bigat is that

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people have to make a decision to save versus spend.

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That's the most important thing, and that's called the time

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preference decision. All right, So once you've decided to save,

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then you have to decide how are you going to

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invest your savings? Will you keep it in cash, will

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you keep it in a bank? Will you invest it

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in something else? And what's happened, you know, in the

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last fifteen or so years, ten or fifteen years in particular,

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is that the accessibility of prudent investment vehicles has increased

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a lot and the cost of it has gone down

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to almost nothing. Okay, and so they really and so

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what people have to start up by doing is Okay,

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I decided to save, How am I going to say

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what can I save? And what I would suggest to

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people is to go to a simple interest rate calculator

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and calculate, if you save, you know, one hundred dollars

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a month and it grows at six percent a year,

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how much will that be worth in twenty years. And

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just do that calculation. It might take you a minute

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on the internet, and you will see that the numbers

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are astonishing, because compound interest is a really Einstein's right,

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it's the eighth wonder of the world. But most people

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don't understand compound interests. So then then take that same

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example of say six percent, and move it to seven

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percent and see what that amounts to. And seven percent

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is a very reasonable objective for a return for most people.

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Of course you'd like to make more, but just do that,

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Just do some math and say that should be a

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very powerful motivator for people to stay on track with

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their investing. And you know, I think that's that's less

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than number one. The other thing to do is for

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people who are you asked about young you know, people

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in their career, people earlier in their careers. The importance

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of savings is good, but the most important thing they

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have is they have time. That's a very valuable resource.

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Time is an incredibly valuable resource. So take advantage of

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the time that you have to invest and do those

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calculations and see what it looks like in ten, twenty

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thirty or longer years, and you'll be pretty surprised. The

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other thing you have to do, and this is specifically

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what I talk about in my book and what I

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do is people have to know how much risky they want,

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how much risks they have, and how much risk they need.

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And those are the three questions that they have to answer,

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and that those are the questions that in my particular

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approach to the world, and you could see that on

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my website. There's a short video that explains how that works.

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But look at what it really means to what is risk? Well,

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risk is it's losing money, it's not making as much

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as you could make, and it's other things and so

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but you have to have to underunderstand what risk means

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to you and how you're going to address that, because

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if you don't take risk, you won't make any money.

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And that's just the way it is.

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That is definitely the case, right if you're not going

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to have a certain amount of risk, any money could

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be sitting in the bank and not give you any

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passive income, as you very rightfully said, and that the

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value goes down as the inflation goes up. So in

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terms of the risks, now, let's say, like you know,

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these professionals have advanced, they're at a point in time

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in a good job, and now they're getting for a

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one k. So one of the key things about for

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a one k because now you know, pensions are unheard of.

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Nobody talks about pensions anymore. Maybe there are pensions in

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some of the companies, but that is an outdated thing

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most of the time. So the thing is that they

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can not take out the money until they're fifty nine

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and a half, and who knows, the age may go

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up as we are living longer. So what is the

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best way to decide that, Yes, you know, I've got

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to have that discipline and invest at least the amount

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of the money that my employer is giving me or

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the matching me for whatever I invest.

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Yeah, well, that is the central question, and I think

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the answer to it is people should look at Again.

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I try to explain this as simple terms as possible

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in my book, and that is to look at the

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history of the stock market or financial markets, but in

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particular the stock market. Now, the standard edport is five hundred,

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which is an index of stocks US US based company stocks.

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It's five hundred companies and the index of returns goes

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back to nineteen twenty six, so almost one hundred years now.

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And for that tinety nine years these that index has

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produced a ten percent rate of return per year with

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income reinvested with no taxes, which is what would happen

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in a retirement account. It wouldn't have any taxes until

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you take the money out and the and that's you know,

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that's what you should just do the calculation. But now

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that is not to say that the stock market is

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an easy place to be because during the Great Depression

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it went down eighty five percent over three years, and

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it came back. During the dot com boom, it went

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down about fifty percent over a couple of years and

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it came back. And the Great Financial Crisis the same thing,

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over a year and a half fifty percent decline, it

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came back. The COVID crisis was you know, another big

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thirty percent decline and came back within a month. You know,

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it was it was down thirty percent in a month

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or thirty five percent a month, and it came back.

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And that was only five years ago and it came back.

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So the market has always been resilient, and the investors

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who have profited from being invested in the stock market

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are also have resilience and resolve and understand that the

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market will test us, it will go down, it will

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make us feel very uneasy, uncomfortable and anxious, and just

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understand that is going to happen. So the most important

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thing people do, and this is what I tell people,

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is to understand your tolerance for investment risk before you

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exceed it. Because if you say, Okay, I can afford

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to watch this portfolio go down by X percent and

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I won't do anything and I'll just stay invested and

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I'll be patient, But then it goes down by X

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plus ten or twenty percent and you're going to say,

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oh no, I have to get out. Well, at that point,

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you know you've you've increased the risk of not achieving

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your long term goal because you will have already realized

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a loss unless you get in at a lower level,

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which is very difficult to do. You know you've lost out.

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So just be patient and you know and all I

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can tell people is that you know who am I.

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Nobody knows who I am but accept a few of

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my clients, a few people around me. But people know

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who Warren Buffett is. And Warren Buffett's been giving the

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same advice for many, many years, and he says, just

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put the majority of your money in the S and

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P five hundred and be patient. And what's Warren Buffett's

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favorite holding period for stocks. It's forever, so you don't

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have to make changes. And if you have a diversified

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portfolio that is in companies that are sound companies. And

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of course companies do fail, okay, and they'll be out

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of the index, but you know you should just do that.

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And another way to look at this is to say, okay,

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I've only got a few hundred dollars to invest, Well,

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guess what you could actually invest in the in the

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S and P five hundred through some of the bigger

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firms ETFs exchange traded funds for very low minimums. And

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what you're doing is and I don't know if you're

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working for a large company or not, but if you

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are thinking it this way, that you are for your

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with your investment at the SF you are engaging the

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five hundred of the best corporate managements in the world

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to manage your money, and you're doing it for almost

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no expense, and that's pretty cool. I think that's a

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great opportunity.

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Absolutely no, And you said it really well that, like

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you know, when you're going with manage funds or ETFs

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or something like that, like you know, as you're investing,

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So a lot of times, you know, people are curious

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if they want to do it on their own or

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go with the financial advisor planner like yourself. So before

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they even kind of do it, how can they get educated?

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I know you mentioned your book and websites, So what's

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the best way to get educated?

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Well, I mean, I think that's a pretty good place

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to start. I don't have any I think the other

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recommendation I've had for a book is Thinking Fast and

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Slow by Day.

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Oh yeah, amazing book.

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That's an amazing book. And you know, there's there's incredible

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wisdom in that. And you know, when we're in the

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middle of a of a battle, it's difficult to keep

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your eye on you know, the long term. You're interested

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in survival for the moment. And I get that, but

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that's exactly what the stock market will do. The stock

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market will test everybody's resolved will It will give us

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terrifying declines, and it will give us, you know, soaring advances.

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And my point is you can't get emotionally involved in

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that process. You have to look at it as a

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this is what happens. This is human behavior repeating itself,

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and that's what it does. And now maybe it's I mean,

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maybe after one hundred years it will stop going up

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at ten percent a year over the long term, but

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there are almost no twenty year periods during which you

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haven't done very well in stock investing in this country.

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Now there are some ten year periods where you haven't

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done well. Okay, but ultimately it comes back and you

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do well. So you just have to be patient. Now,

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the big thing is what is your time horizon for investing.

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If your horizon for investing is five years, I would

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say you probably shouldn't own too much in stocks because

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stocks could go down by a lot and stay down

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for you know, a couple of years, and you may

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be you know, if you need the money, you're going

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to have to sell at a depressed price. So you

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have to have a longer horizon to be invested in stocks.

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One of the things that I say to people is

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in ter do you hire an advisor or do you

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do it on your own? Well, I advocate independent investing.

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And the reason I do that is because a couple

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of reasons. One is that expenses management expenses are very,

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very costly. Now I have on my website there's a

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calculator that might take somebody literally twenty seconds ten seconds

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to do, and it shows you how much if you have,

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how much money you have, how much you know your

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your investment management fee is it's usually around one percent,

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and how many years you're going to have it invested in?

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What kind of rate of return might you expect? And

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you can put whatever numbers you wanted there and it'll

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give you the answer, and you will be surprised at

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how much that one percent actually costs over time. And

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I could give some examples, but but I would encourage

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people to go to use that calculator. There's no email required.

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You know, no one's going to be asking you for

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an email. You just just go in and do the

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calculation and you'll get the answer and you know and

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then if because I think that that should persuade somebody

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that if they are going to pay an advisor a fee,

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they have to do their diligence and make sure that

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that advisor after actually can add value after their fees.

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Because if the advisor is going to say, well, you know,

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you look like you should have this portfolio and we'll

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put it in et apps, we'll put it in an

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index bo which is what most advisors do actually, and

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then you say, okay, well you're going to charge me

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a fee to do that, So how are you going

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to do better than the index if you're investing in

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index funds after your fee? And the answer is, well,

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I don't know, we you know, but I'm here for you.

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You know you could be. And most people feel very

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comfortable with advisors. And what I have gotten from people is,

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you know, when they asked you, what have you been doing,

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I said, well, I wrote a book, I'm investing. What's

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it about. It's just about efficient investing for individuals, and

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all I have an advisor and they've maybe a lot

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of money. I said, well that's wonderful. Great. Now I

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don't ask them, you know, compared to what because anybody

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who's been in the stock market in the last five, ten,

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twenty years has made a lot of money, okay anybody, So,

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you know, has the advisor made more for themselves or

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their clients? And that's the question that the investor has

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to pursue and to try to answer. And some advisors

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now keep in mind, Centred first five hundred has said

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in there's studies that over the last fifteen years only

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ten percent of mutual funds have outperformed their benchmarks, their

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index benchmarks. So you can find that one in ten

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advisors that actually can outperform the index after their fees.

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But mind you, after their fees, which they often don't disclose,

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by the way, they don't disclose those numbers after their fees.

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They just say, oh, yeah, you have to what have

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you done after your fees for me? And you know,

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if you can find that one in ten, that's great,

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I think I'm all for it. Look, I was an

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investment advisor myself. I had my own firm, you know,

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so but if we didn't add value, we lost the client.

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We had.

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Well, I had endowment clients and I had family offices,

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and these were sophisticated, demanding clients, so they weren't you know,

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they so they asked a lot of questions and so on.

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Are the things I have in the book is for

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those people who are considering hiring an advisor. I have

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some questions and they're on my website and you can.

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Go look at the court and share some of because

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you know, the listeners listening over here to Live, they

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may be thinking, okay, Andrew, why don't you share some

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of those questions with tis.

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