Despite
getting burned in 2008, investors keep coming back to advisers who
cost them as much as 25% or more of their
investment income. (Calculate the average fee of 1½% of
investment assets against
average investment
income and you get an
idea of what money advisers get from clients each year.)
The trend for
using investment advisers
appears to be growing; the fact
these same folks were generally unable to help prevent
the damage from past market
debacles has not hurt
adviser reputations.
You can
easily invest in low-cost index
mutual funds and ETFs,
using common sense
as I always recommend. Avoid
advisers, except for necessary lawyers, accountants and tax experts
you may need. (See the Earl J. Weinreb NewsHole® comments and
@BusinessNewHole tweets.)
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