🧠 Why Your Investing App's "Top Picks" Could Sabotage Your Goals

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…

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.

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.

🚫 Assuming “recommended” means “best” for you🚫 Ignoring expense ratios and other hidden fees🚫 Chasing recent trends and returns without understanding the risk

✅ 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 [email protected] and send it my way—I’ll help you break it down.

You’ve got this✍️ Isaiah from Earn Out Loud

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