I’ve written on more than a few occasions about the active versus passive investing debate, which will likely never end due to everyone having different goals and preferences around their investments.
Well written. This is the same argument against financial advisors. If an advisors only value being brought to you as a client is the returns of your portfolio, you should strongly consider working on your own, or find an advisor who is more well rounded. In almost all cases, advisors should be providing value through offering solutions to estate and tax planning, as well as being strategic with the next dollar used in the household.
I agree! I would recommend working with a financial advisor who offers value and insight outside of investment management. Although, to simply give a counterpoint, there are many people out there who want and need someone to hold their hand through setting up accounts, monitoring their accounts, and making sure they save and invest. Working with and paying someone to help you save and invest for retirement is far better than not working with someone and it never getting done. Sometimes there is value in simply having an accountability partner.
Understood. However, I don't see that as someone who should be paying a 1.25% all in wrap fee. Which is standard for the large industry advisory shops.
Well written. This is the same argument against financial advisors. If an advisors only value being brought to you as a client is the returns of your portfolio, you should strongly consider working on your own, or find an advisor who is more well rounded. In almost all cases, advisors should be providing value through offering solutions to estate and tax planning, as well as being strategic with the next dollar used in the household.
I agree! I would recommend working with a financial advisor who offers value and insight outside of investment management. Although, to simply give a counterpoint, there are many people out there who want and need someone to hold their hand through setting up accounts, monitoring their accounts, and making sure they save and invest. Working with and paying someone to help you save and invest for retirement is far better than not working with someone and it never getting done. Sometimes there is value in simply having an accountability partner.
Understood. However, I don't see that as someone who should be paying a 1.25% all in wrap fee. Which is standard for the large industry advisory shops.