4 ms·

Even the best advisors charge 1%, which seems insanely high to me, considering what one can do with a discount brokerage, some index funds, and bit of research

Even the best advisors charge 1%, which seems insanely high to me, considering what one can do with a discount brokerage, some index funds, and bit of research on rebalancing and taxes each year.

__derek__ 9y ago
This reminded me of Friday's Intelligent Investor column[1] entitled "Don’t Touch My Money, Just Hold My Hand". Its closing: > So you should hire an adviser not for his or her investing prowess, but to help organize your finances, prioritize your goals, minimize your taxes, and navigate the shoals of retirement and estate planning. Done right, those services can make you far richer — and happier — than the pipe dream of investment outperformance is likely to. Now that the index revolution has solidified, I think there's going to be a strong market for financial advisors that just offer advice in the coming years. [1]: https://blogs.wsj.com/moneybeat/2017/06/09/dont-touch-my-money-just-hold-my-hand/ https://blogs.wsj.com/moneybeat/2017/06/09/dont-touch-my-mon... (yes, sorry, behind a paywall)
- rtx 9y ago
  >Now that the index revolution has solidified People will have a slow awakening.
  - __derek__ 9y ago
    What do you mean?
    - rtx 9y ago
      Everyone cant make money in the market. Who is on the other-side of index funds.
      - ars 9y ago
        Young people buying, old people selling. It relies on population growth, but for the US that's a fine bet. It would not work in Japan.
      - thedufer 9y ago
        Why can't everyone make money on the stock market? It's not a zero-sum game.
      - smileysteve 9y ago
        Random Walk isn't about everybody beating everybody all of the time. Active funds, individual traders, hedge funds, pe, VCs are all trying to optimize active individual bets, and those will likely have high positive returns sometimes. But when those with the highest returns get over priced and a fee built in until an index fund is better over long terms.

Even the best advisors charge 1%, which seems insanely high to me, considering what one can do with a discount brokerage, some index funds, and bit of research on rebalancing and taxes each year.

__derek__ 9y ago

This reminded me of Friday's Intelligent Investor column[1] entitled "Don’t Touch My Money, Just Hold My Hand". Its closing: > So you should hire an adviser not for his or her investing prowess, but to help organize your finances, prioritize your goals, minimize your taxes, and navigate the shoals of retirement and estate planning. Done right, those services can make you far richer — and happier — than the pipe dream of investment outperformance is likely to. Now that the index revolution has solidified, I think there's going to be a strong market for financial advisors that just offer advice in the coming years. [1]: https://blogs.wsj.com/moneybeat/2017/06/09/dont-touch-my-money-just-hold-my-hand/ https://blogs.wsj.com/moneybeat/2017/06/09/dont-touch-my-mon... (yes, sorry, behind a paywall)

rtx 9y ago
>Now that the index revolution has solidified People will have a slow awakening.
- __derek__ 9y ago
  What do you mean?
  - rtx 9y ago
    Everyone cant make money in the market. Who is on the other-side of index funds.
    - ars 9y ago
      Young people buying, old people selling. It relies on population growth, but for the US that's a fine bet. It would not work in Japan.
    - thedufer 9y ago
      Why can't everyone make money on the stock market? It's not a zero-sum game.
    - smileysteve 9y ago
      Random Walk isn't about everybody beating everybody all of the time. Active funds, individual traders, hedge funds, pe, VCs are all trying to optimize active individual bets, and those will likely have high positive returns sometimes. But when those with the highest returns get over priced and a fee built in until an index fund is better over long terms.