Madison MoneySports - Personal Finance Thread

[WRXtranceformed]

Actively Managed beating index funds by 3%?   Its simply not true.   In fact,  its often the other way around.

https://money.usnews.com/investing/artic...-investors

A year-end study by S&P Dow Jones Indices found that "over the 10-year investment horizon, 82.14 percent of large-cap managers, 87.61 percent of mid-cap managers, and 88.42 percent of small-cap managers failed to outperform (their index benchmarks) on a relative basis."

So in over 80% of cases,  not only are you paying extra fees,  you are making less money.

https://www.wsj.com/articles/index-funds...1496701157

Id quote this one,  but Id be quoting the whole article.  Just read the whole thing.


Even if you dont want to "work on your own car" / pick your own funds,  roboadvisers have much lower fees than an FA and will automatically diversify and rebalance your funds.   They even include a % of bond funds depending on your risk appetite.  
Its an easy button.

We could trade articles back and forth about the pros and cons of hiring a professional to manage your money.  At the end of the day I still believe that you are doing yourself a disservice if you don't research all options including using a good FA.  Investing in my opinion is not just about picking good index funds and letting machine learning guide your future.  Your life situation is constantly changing and unless a machine can advise you on what financial changes you should make, you're doing yourself another disservice imo