Self-made millionaire shares biggest investing regret: How a poorly planned strategy almost cost her Rs 8 crores
Starting Small: Turning Savings Into Investments
Waresmith began her professional journey in 2010, working on a cruise ship as a high-diver, acrobat, and later, a shopping guide. At the time, the global economy was still recovering from the recession, and the job offered a rare opportunity with covered food and housing expenses.
“Over a couple of years, I thought to myself, ‘This is my chance to save as much as possible,” she shared. Encouraged by a friend to explore investment opportunities instead of simply saving, she took the advice to heart. “He said, ‘You can use the money you’re hoarding to buy things that make you more money.’ It was a perspective I hadn’t considered before,” she explained.
Like many newcomers to investing, Waresmith opted to hire a financial advisor, believing they would expertly manage her portfolio. Unfortunately, this decision led to significant setbacks.
“With stock market investing, I was really afraid to do it wrong, so I hired a financial advisor. They made a lot of bad decisions on my behalf,” Waresmith revealed. Among the mistakes was being sold an annuity designed for retirees in their 50s—despite being just 26 years old at the time. Additionally, she was charged over 2% in fees, which eroded her returns.
Her advisor’s strategy included underperforming mutual funds with high expense ratios exceeding 0.75%. Combined with a fee structure of 1% of her portfolio’s value and an additional 0.25% for access to an online platform, these costs significantly impacted her earnings.
