Quote:
Originally Posted by eweissenbach
They are prohibited from making recommendations on what funds to select. They can make broad recommendations, but not specific, because if they made specific recommendations and they turned out poorly, they would be liable. Let's be honest here, your cousin will not become wealthy by starting his nestegg at age 60 with $200 a month. However, it is better than doing nothing and by dollar cost averaging he should see a nice return. 12% is an agressive assumption, and certainly not an expected return. Something is better than nothing so he is thinking correctly, just don't expect unrealistic results.
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I agree, don't expect 12%. At one time, a few years ago, I pulled out of the stock market and used only CD's and money mkt acct's until the interest got to next to nothing. When I decided to get back into it I figured anything I can make over the less than 1% that they were paying was to my advantage. After spending time with a very successful friend of mine tutoring me on investing I got my feet wet and am forever grateful to him.