Quote:
Originally Posted by manaboutown
F&F certainly has a lot of costly overhead and charges very high fees for a little hand holding and guidance. And happy Hours!!! Oh boy! I wonder what their historic investment track record has actually been. Very few beat the market averages and usually not for long. There are only a handful of exceptions. Warren Buffett, Charlie Munger, Peter Lynch and Bill Miller come to mind.
Where are F&F's customers' yachts?
|
You're spot on. The science is that actively managed funds rarely outperform index funds.
For those new to investing, that means that a human will almost NEVER do a better job with a mutual fund than a basic index fund will achieve.
"If you're investing for the long term, passive funds of all kinds almost always give higher returns. Over a 20-year period, about 90% index funds tracking companies of all sizes outperformed their active counterparts." - Forbes
Make more $$!
Now you know that you can go to Vanguard.com, Fidelity etc. and have the BEST chance of getting the HIGHEST return on your $ - for ALOT less than a stealer FA.
Vanguard's index mutual funds cost about .18% ------ yes, way less than a percent/yr. Vanguard and Fidelity charge much much less than any FAs Im aware of... and both Vanguard and Fidelity have dedicated, intelligent people to walk you through the process if you'd like help.
Of course if you want lower than average returns on your money AND you want to pay big $$ to a FA, you're free to do that. We're talking thousands ++ per year.