Most
investors don’t need financial advisers for three basic reasons.
First,
basic investing principles are easy to master. Secondly, what to buy
is simple in the age of index funds. There is no reason to attempt to
buy individual securities. I have explained why in much of my past
comments and books.
And third,
adviser fees eat too much out of investment earnings. I repeat this
constantly. Adviser fees can account for as much as 25% and more of
annual investor earnings.
The
garden variety of advisers, that is the bulk of them, are not worth
the money because their expertise is run-of-the-mill.
On
the other hand, investors who have estate and tax questions need
legal help. That has little to do with portfolio selection.(See
the Earl J. Weinreb NewsHole® comments.)
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