I saw this on another financial message board that I frequently read. The thread was about an article listing 10 money management misconceptions people have - which most on this board would probably agree with. One misconception listed was that some people investing for retirement believe they can pick stocks that will produce a better return than mutual funds.
One commenter stated that he/she left mutual funds long ago and picks individual stocks. Someone else responded to that with the following words of wisdom:
"One of the big reasons that I like MF's & suggest them to people is because I have a lack of faith. Over the years I've met an abundance of people that to be honest I was surprised that they were able to dress themselves without help. To suggest to them that they should pick their own stocks to buy in a retirement account would be like giving a 4 year old scissors to run around with. Some people just don't have what it takes to pick stocks."
One commenter stated that he/she left mutual funds long ago and picks individual stocks. Someone else responded to that with the following words of wisdom:
"One of the big reasons that I like MF's & suggest them to people is because I have a lack of faith. Over the years I've met an abundance of people that to be honest I was surprised that they were able to dress themselves without help. To suggest to them that they should pick their own stocks to buy in a retirement account would be like giving a 4 year old scissors to run around with. Some people just don't have what it takes to pick stocks."