Another financial advisor horror story...

[donheff]

Here , I'll save everyone a couple hours per week/month:

Dollar cost average into no load index funds.

There ... all done.

Actually, if more TV shows and company benefits officers would at least describe this as a reasonable approach for IRA's and 401Ks a lot of people would benefit. The new lifestyle funds are a pretty good no-brainer alternative as well.

 

[My Dream]

Here , I'll save everyone a couple hours per week/month:

Dollar cost average into no load index funds.

There ... all done.

Believe it or not, I don't even know what that means.

 

[Sheryl]

Believe it or not, I don't even know what that means.

Dollar Cost Average ( put same amount of money each month) into no load (funds without sales fees) index funds (funds that buy all the stocks in a particular index like S & P 500).

See. with 4 minutes of study - you can do it!

 

[FinanceDude]

Here , I'll save everyone a couple hours per week/month:

Dollar cost average into no load index funds.

There ... all done.

If that was all it took, it would be great.........

 

[Nords]

If that was all it took, it would be great.........

Ah, but then what would we need financial advisors for?

 

[FinanceDude]

Ah, but then what would we need financial advisors for?

Because 90% of average Americans don't know what you and I do, and don't want to learn............

 

[Nords]

Because 90% of average Americans don't know what you and I do, and don't want to learn............

So it really is that simple, but most people have chosen to be blissfully ignorant? I guess I'd call that capitalism...

 

[FinanceDude]

Ah, but then what would we need financial advisors for?

Based on your theory, anything can be learned if you want to, so I guess all the plumbers, electricians, carpenters, lawyers, doctors, engineers, etc had better take heed...........

 

[Mr._johngalt]

So it really is that simple, but most people have chosen to be blissfully ignorant? I guess I'd call that capitalism...

I don't know if they have "chosen" it, but proof of "ignorance"
is easy to find. Just turn on your TV or radio (any time).

JG

 

[My Dream]

Dollar Cost Average ( put same amount of money each month) into no load (funds without sales fees) index funds (funds that buy all the stocks in a particular index like S & P 500).

See. with 4 minutes of study - you can do it!

Thanks Sheryl, I'm going to put that in my Investment 101 file.

 

[My Dream]

It only takes 2 hours a month or a quarter AFTER you read a lot, discuss a lot, and figure out your asset allocation (or even what that term means). It took me hundreds, maybe thousands of hours before I knew what I was doing enough to spend as little as 2 hours a month (and I spend more like 10 hours a week, if you count the reading I do aobut economics and investing on the internet).

Newbies are exposed to conflicting information and it takes a lot of exposure and thought to determine what is right for an indidivudal investor--Ray Lucia's buckets? Bill Schulteis' Coffeehoue Port? Scott Burns' Couch Potato port--and which variant? Vanguard Diehard style? DFA? Guru/newsletter? Company stock? Blue chips? Small alue? Foreign? Global? Bonds--govt or corporate? AAA or BB? Target Retirement? Alpha, Beta, Sharpe, volatility, benchmarks, index funds, active funds, ER...?

So I'm not alone, thanks astromeria.

 

[tryan]

If that was all it took, it would be great.........

Well, you'll "beat" 3 out of 4 who don't use no load index funds. If you want to chance being in the 1 of 4 group, it'll cost you (commisions, loads, fees ....).

Moderator edit: quote fix.

 

[astromeria]

It's not so much people "choosing" to be ignorant as they are frightened and frustrated by the unknown, the high stakes, and the conflicting information. It's like doing home repairs--not everyone feels up to the challenge of roof repair, electical work, plumbing--or cleaning out their own chimney --so they let their house deteriorate or hire someone to take care of it for them.

 

[FinanceDude]

Well, you'll "beat" 3 out of 4 who don't use no load index funds. If you want to chance being in the 1 of 4 group, it'll cost you (commisions, loads, fees ....).

And I think putting ALL your eggs in one basket and using EXCLUSIVELY index funds isn't he answer either. I thought Vanguard had actively managed funds too, or am I incorrect

 

[My Dream]

It's not so much people "choosing" to be ignorant as they are frightened and frustrated by the unknown, the high stakes, and the conflicting information. It's like doing home repairs--not everyone feels up to the challenge of roof repair, electical work, plumbing--or cleaning out their own chimney --so they let their house deteriorate or hire someone to take care of it for them.

Now you see, to me.............that's second nature. I wouldn't think of calling someone to do those repairs. It's sort of how I was brought up, and I share those interests with my friends. Now if I asked them what type of investments they were in, I would get that, how the heck should I know, type look.

 

[tryan]

Owning a little of everything is a pretty diversified "basket" ... yes, Vanguard has managed funds, heck, they need to make $$ SOMEWHERE.

 

[FinanceDude]

Owning a little of everything is a pretty diversified "basket" ... yes, Vanguard has managed funds, heck, they need to make $$ SOMEWHERE.

I was being facetious......... The one thing I will share is that EVERYONE has a BUY discipline, but I know of precious few that have a SELL discipline...........DIY-ers or not, sophisticated or not.

Throwing a bunch of money at index funds and checking off the "make sure I have enough money at retirement" from the to-do list Pontius Pilate style is a little too easy.....................

 

[SecondCor521]

Throwing a bunch of money at index funds and checking off the "make sure I have enough money at retirement" from the to-do list Pontius Pilate style is a little too easy.....................

Why should it have to be hard? or complicated?

2Cor521

 

[yakers]

How much sell discipline is necessary. DCA for 35 years into a target retirement fund, withdraw 4% (inflation adjusted) per year from same fund for next 35 years.

Play with it a little if great depression or major market increase. Or just take 5% each year of whatever is in the fund, should last "forever"

 

[kcowan]

It's not so much people "choosing" to be ignorant as they are frightened and frustrated by the unknown, the high stakes, and the conflicting information. It's like doing home repairs--not everyone feels up to the challenge of roof repair, electical work, plumbing--or cleaning out their own chimney --so they let their house deteriorate or hire someone to take care of it for them.

I learned how to fix things by helping my Dad. I never learned anything about investing from him.

Maybe we need a Home Depot for DIY Investing?

 

[FinanceDude]

I learned how to fix things by helping my Dad. I never learned anything about investing from him.

Maybe we need a Home Depot for DIY Investing?

I thought that was Vanguard.com??

 

[unclemick]

How much sell discipline is necessary. DCA for 35 years into a target retirement fund, withdraw 4% (inflation adjusted) per year from same fund for next 35 years.

Play with it a little if great depression or major market increase. Or just take 5% each year of whatever is in the fund, should last "forever"

Yep - Target Retirement 2015 - and 35 yrs puts me at 98.

Unfortunately for 42 yrs cursed with male hormones - 15% side money searching for 'The Stock' - Postscript to the 4th ed of Graham's The Intelligent Investor. A side effect of the disease is to read a lot of investment 'stuff'.

Ah well - keeps me from ratting the streets late at night or doing wild and crazy things with kayaks.

Successful investing is mostly an act of faith - ala De Gaul or Bogle's "stay the course."

heh heh heh heh heh heh - some things you just gotta go for - even against the odds. ?Saint's in the superbowl This year for sure!!

 

[mathjak107]

most people do more research on buying a refrigerator than on their own personal finances..

to tell you the truth i think being a financial planner armed with life insurance and immeadiate annuties marketed to the right people can be a very very lucrative business. i wouldnt even need any other products.

id target the group of people that need an extra bang for the buck each month from an annuity and i would sell the life insurance to familys that are 2nd marriages with enough assets to have a nice comfortable life but if one died and a distribution was made to the kids then it would be tough surviving for the remaining spouse.

by selling the life insurance with the kids as benificiaries it would keep the kids from chomping at the bit going soooo when is that bit*h going to die already so i can get my fathers share.


sooooooooo what do you think? new career here?

 

[FinanceDude]

most people do more research on buying a refrigerator than on their own personal finances..

to tell you the truth i think being a financial planner armed with life insurance and immeadiate annuties marketed to the right people can be a very very lucrative business. i wouldnt even need any other products.

id target the group of people that need an extra bang for the buck each month from an annuity and i would sell the life insurance to familys that are 2nd marriages with enough assets to have a nice comfortable life but if one died and a distribution was made to the kids then it would be tough surviving for the remaining spouse.

by selling the life insurance with the kids as benificiaries it would keep the kids from chomping at the bit going soooo when is that bit*h going to die already so i can get my fathers share.

sooooooooo what do you think? new career here?

Well, if you are ok dropping all your moral values to make money, I guess it could work. But, I wouldn't call you a financial advisor............

 

[mathjak107]

hmmmmmmmm dropping all morals to make money. i think ill leave that to my son, hes a young budding lawyer.