Many investing professionals try to steer you into load mutual fund products, because they are paid a commission based on the amount of money you invest. They would do you an immense service if they suggested no-load index funds, but why would they – no commission there, so they fail to let you know you have only a 30% chance of beating the index . Index fund investing beats the pants off actively managed mutual funds. I’ve sure had my fill of bad self-serving investing professionals from our company’s 401(k) plan, life insurance salespeople, and dozens of popular Wall Street propaganda books.
cabinboy, where do you suggest people go for their investment advice? A thread recently where privatebanker argued for the services of a CFP seemed to go nowhere, as he never did give the proof I requested that CFPs know any more than the rest of us, or help their clients achieve any better returns.
cabinboy, how did the average American do following your 4-step plan when they were buying up homes to flip? Or just buying a house at the top of the market with an Option ARM because their tax guy said it would save them on their taxes? How well off is the average investor who followed this 4-step plan?
If someone asked me where to go for basic investment advice or help in setting up a lifetime financial plan, I would suggest Rich Toscano. I’d make sure I had a professional to assist me with my taxes (CPA) and trust (probate attorney). I’d make sure I had all my insurance needs covered (disability, life, health, perhaps long-term care), some cash in the bank and a line of credit for emergencies. Then I would go to piggington to exchange ideas with other smart folks about how to invest the money I’ve saved, because the stuff coming from Wall Street helps the mutual fund managers get rich, but is of little use to me.