It's not as hard as it seems.
By Marta Norton | 01-08-08 | 06:00 AM | E-mail Article | Print Article | Permissions/Reprints | Marta's Monthly Newsletter
At a party a few weeks ago, a friend turned to me and said, "I'd love to invest on my own, but I don't even know how to begin." You can't really blame her: She faces myriad investing choices, layers of fees, and the possibility of losing her shirt when things go wrong. That's why so many investors flock to financial advisors, attracted to the peace of mind that their guidance can offer. To be sure, many advisors offer valuable services, but others are less helpful. In fact, many academic studies have shown that investors working with advisors have fared worse than those who go it alone. . . .
Full article on Morningstar
Subscribe to:
Post Comments (Atom)
3 comments:
I thought this was a cool little article> I would consider myself to still be on the Bunny Hill, but the rest of you guys on the Intermediate to expert hills.
Interesting article, although the author appears to be an advocate of mutual fund investing, especially in the target date funds and fund of funds. I do believe there is a reason for almost any investment vehicle, but I always become concerned about the layering of fees in these types of investments. That is you are paying a money manager fees to invest in mutual funds which require fees, I would think you could be better off purchasing ETFs. For example the FFNOX by fidelity invests in Fidelity’s S&P Mutual Fund, and International Fund, an Intermediate Term Bond Fund, and a Russell 2000 fund, you could go out and purchase four ETFs that do exactly the same thing and not pay any of the mutual fund fees.
Thats great advice DCTax, however in a sense we are paying these guys who know what they are doing to invest in the right investment. These guys are pros, I am not.
Post a Comment