Why And How To Choose A Financial AdvisorRead My Response
Good article, but one note in response to "While do-it-yourself active trading can be fun and give you a sense of control, it may not translate into profits."
DIY investing isn't exactly about having "fun", it's more about taking control and being accountable for wealth creation, financial and lifestyle goals. Individual investors don't have to underperform the market, if they implement a disciplined, low fee and passive investing strategy. One to five index funds is all it takes.
What this article doesn't mention is that the majority of "professional" fund managers underperform the market just the same. So between mismanagement, hidden, high, unjustified fees and advisor conflicts of interest, underpeforming the market by 1.5% would still be a steal. Active trading is silly
because the house wins the majority of the time so it isn't a strategy I recommend.
The bigger question is why use an advisor in the first place. The use of any advisor is justified when an individual cannot develop expertise on his or her own. Comprehensive estate and tax planning for instance is an area of knowledge that qualifies. However, using advisors who do nothing but dump clients into garbage mutual funds tied to commissions is an extremely bad choice that erodes wealth, retirement prospects, financial and lifestyle dreams. http://www.forbes.com/sites/jamescahn/2014/03/05/why-and-how-to-choose-a-financial-advisor/SAVE 70% on my online investment eCourse at #Udemy for a limited time. http://ow.ly/tEBHP#money #investing #financial #stocks #DIY #success #happiness #retirement #personalfinance #business