Pretty clear about what? This board is a very small sample size of people who ARE engaged heavily in their financial lives, do you really think that represents the majority of America?
Completely agree. A vast majority of the people I worked with couldn't begin to invest intelligently for themselves (mostly in 401k's), even some very well educated professionals. Many (to my surprise) would share their investment moves openly, actual 50 yo person
'I moved all my 401k funds to XX Foreign Growth because it provides the highest returns' (yikes), only to reveal a couple years later they'd lost their shirts and sold off/moved to the latest highest return fund (double yikes) - over and over. Went from telling us all (constantly) '
I'm retiring in two years,' to
'I don't know if I'll ever be able to retire.' Sad, and predictable...
We had a degreed career accountant (you'd think they could pick up investing) who has been paying Mass Mutual 1% a year for more than 20 years (still is AFAIK) for subpar returns. He expects to retire when he is 70...we're still in touch.
FD said:
Yes, if people actually READ books from Bogle and others, and more importantly IMPLEMENTED those ideas, they would be better off, with or without an FA.........
That was my central point. If you can guide people here, why not do it?
FD said:
Some FAs charge 1%, some do not. You can't generalize that all do.......
I wasn't, but are you telling me 1% of assets isn't common, or that there aren't FAs that charge even more? So what is typical?
FD said:
It's not, and most if not all fee-based advisors charge accordingly. My $2 million plus clients are all under 40bp.........
That's outstanding, but not typical from what I've read, but I acknowledge you're in a better position to know. So enlighten us on what is typical?
FD said:
I find it hard to believe you said that, considering your above statements.........
Why? I simply contend that the odds are against a novice finding a value added FP/FA, not that there aren't any.
Back to the unfortunate adage, 'by the time you know enough to pick a good FA, you don't need one.' Not true? It stands to reason a savvy investor would be able to pick a value added FA, and a novice could be easily fooled into picking an FA who was 'nice, polite and always available.'
No one admits their FA isn't providing value, until they very clearly don't...