Overactive Financial Advisers

                     

I find professional advisers too 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 advisory consultation.

                                                   

To make themselves appear necessary, many advisers will make up portfolios with as much as ten and more individual funds when just a few, low cost funds will do. The end result is meaningless, apart from marketing the adviser’s expensive 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 on your own with low-cost index mutual funds, (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)