🧠 Why Your Investing App's "Top Picks" Could Sabotage Your Goals
Many investing apps push “recommended” funds that sound helpful—but often come with higher fees, lower returns, and misaligned incentives. Here’s what to do instead.
Hey there,
Last week you built your plan, picked your starting investments, then automated your monthly contributions. Congratulations!
Don’t be surprised in a few weeks if your investing app hits you with a “Top Pick” recommendation, or “Curated Fund” alert.
Sounds helpful, right?
The truth is, it might hurt your money goals a lot more than it would help you. Let me explain…
What’s Really Going On
A recent study found that index and mutual funds recommended by brokerage apps saw a big surge in purchases—but often underperformed and came with higher fees.
Why? Because they are often driven by what benefits the platform, not you. And beginner investors were the most likely to take the bait.
It’s easy to assume that a broker will highlight a specific fund or investment based on its performance or quality. But behind the scenes, these picks are sometimes chosen because they:
✅ Earn the platform a commission or incentive
✅ Promote their in-house products with higher fees
✅ Encourage short-term trading over long-term discipline (which is an advanced skill that most beginners aren’t yet ready to tackle)
For a beginner trying to build a simple, consistent strategy, these “recommendations” can quietly lead you off track.
The Better Approach
Instead of tapping on investments prompted by the app, stay focused and stick with your plan. Choose investments that align with your risk level, time horizon, and goals—this is why last week’s planning process was so important.
With a clearly written goal, risk profile, and a basic allocation, you already know more than most people who are blindly tapping those suggestions.
In the beginning, you don’t need a trendy fund or a flashy chart. You need consistency.
“Regardless of what happens in the markets, stick to your investment program. Changing your strategy at the wrong time can be the single most devastating mistake you can make as an investor”
- Jack Bogle, Founder of The Vanguard Group
Common Mistakes to Avoid
🚫 Assuming “recommended” means “best” for you
🚫 Ignoring expense ratios and other hidden fees
🚫 Chasing recent trends and returns without understanding the risk
What You Can Do Today
✅ The next time your app recommends a fund, take a screenshot.
✅ Then Google the fund name + “expense ratio” and “performance vs S&P 500.”
✅ Finally, ask yourself: Does this fit my plan, or is it just shiny?
Want help reviewing a fund or investment your app suggested? Email earnoutloud@gmail.com and send it my way—I’ll help you break it down.
You’ve got this
✍️ Isaiah from Earn Out Loud
What’s Next
Tomorrow, paid subscribers will learn how to evaluate any investment fund using three simple questions that can save you money and stress. Want access? Upgrade to Earn Out Loud Pro.
-Isaiah from Earn Out Loud