As you probably 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 11⁄2% 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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