Comments on: Education First. Advisor Second.

By: Rob Bennett

Rob Bennett — Thu, 20 Aug 2009 17:11:52 +0000

I think it is the investing advice we give people that needs to change. When we give sensible and effective advice, it will make sense and it will stick. I share Rob Arnott’s view that the conventional investing advice of today is rooted in “myth and urban legend.”

Rob

By: Mark Wolfinger

Mark Wolfinger — Wed, 19 Aug 2009 17:17:59 +0000

Agree – education first

1) If you are going to go with 100% passive investing, it seems ridiculous to pay a fee to an advisor to get help with selecting ‘appropriate’ passive investments.

2) Agree that you want to ask pertinent questions of advisors. But really – how tough is it to diversify with passive investing? Keep those fees for yourself. Why add to market underperformance [assume = performance minus small fees paid to managers of those passive investments] with extra fees?

3) I still believe those financial ‘pros’ are not aware of enough different investment ideas. They, like you were, are too under-educated to truly help clients.

By: My Journey

My Journey — Wed, 19 Aug 2009 16:05:31 +0000

I am the kind of guy who will literally never change my own oil (although I proudly changed a light fixture the other day). Its not that I am unable to learn, I just won’t. There are those that will literally never understand investing (even if it is Oblivious Investing strategies you highlight in your must read book), and for those an Advisor is 100% necessary.

Notwithstanding the above, your assesment of what to ask an advisor is great! RUN FOR THE HILLS if your trusted, great guy advisor says I am here to get you double digit returns every year. Rather a proper answer would be, along the lines of “understand your goals and risk tolerance and build an appropriate portfolio. ”

Great post