Jack explains how easy it is to do the right thing in the investment markets. Advisors at a minimum charge $10,000/year to manage a $1.0 million account. Understanding what Jack is saying means that this $10,000 can easily be saved by a lot of people. What I find sad is that many people have managed money on their own and have not done badly. They were given some guidelines in a human resources meeting several years ago and accordingly picked funds to allocate each paycheck's 401(k) contribution. Then when it gets of sufficient size, advisors convince them that it is too complicated to do themselves. They hand their account over to an advisor and pay the big bucks.
Bogle is a gem. I'll post some more video of him over the next couple of months.
For some reason, when it comes to managing their own money, people seem prone to doubting themselves. Most advisors are pros at feeding that doubt to get the account and the fees. Indexes work for everyone, whether the portfolio is $100,000 or $10,000,000.
Jack explains how easy it is to do the right thing in the investment markets.
ReplyDeleteAdvisors at a minimum charge $10,000/year to manage a $1.0 million account. Understanding what Jack is saying means that this $10,000 can easily be saved by a lot of people.
What I find sad is that many people have managed money on their own and have not done badly. They were given some guidelines in a human resources meeting several years ago and accordingly picked funds to allocate each paycheck's 401(k) contribution. Then when it gets of sufficient size, advisors convince them that it is too complicated to do themselves. They hand their account over to an advisor and pay the big bucks.
Bogle is a gem. I'll post some more video of him over the next couple of months.
ReplyDeleteFor some reason, when it comes to managing their own money, people seem prone to doubting themselves. Most advisors are pros at feeding that doubt to get the account and the fees. Indexes work for everyone, whether the portfolio is $100,000 or $10,000,000.