As
you know from my reports, I find professional advisers
extraordinarily expensive for most ordinary investors. They take as
much as 20% and more of earnings when their cut is 1½% or more of
assets managed. Only investors who require estate and tax advice need
additional expert consultation.
To
make themselves appear necessary, advisers will make up portfolios
with as much as ten and more individual funds when just a few, low
cost funds will do. The assortment is supposed to be the result
of more selective investment thought. But the end result is meaningless,
apart from marketing the adviser’s service.
I
have written volumes about the subject, but to sum up, let me repeat
a simple lesson: Once you learn investment basics, you can manage
your own investments with low-cost index mutual funds, (See the Earl J. Weinreb NewsHole®
comments and @BusinessNewshole tweets.)
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