Author Topic: "Why Paying for Financial Advice Makes Sense"  (Read 1796 times)

maizeman

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"Why Paying for Financial Advice Makes Sense"
« on: April 05, 2015, 12:06:37 PM »
The worst part is that the author even seems to understand just how simple making good money decisions actually is:

"Traditional brokerage firms once made plenty of money through commissions that paid their financial professionals over the many years that clients held onto certain mutual funds ... the funds almost inevitably underperformed basic stock indexes like the Standard & Poor’s 500 ... insurance agents sold those messy annuities or investments wrapped in complicated life insurance policies... the customers would often have been better off buying some cheap index funds and holding them for decades while purchasing some simple term life insurance on the side for $50 a month."

But then we get this:

"She says she pays $135 each month for unlimited yoga and other friends pay the same thing for CrossFit or cable. If you’re going to pay that much to care for your body and entertain your brain, then logic would dictate paying about the same amount to make sure you’re saving and spending your money in a safe way."

And this:

"Customers and financial advisers who saw the light sensed that the best way for consumers to pay for advice was to hand over money directly to the advice giver, perhaps on an hourly or monthly basis or by paying 1 percent of their assets each year."

http://www.nytimes.com/2015/04/04/your-money/why-paying-for-financial-advice-makes-sense.html

Kris

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Re: "Why Paying for Financial Advice Makes Sense"
« Reply #1 on: April 05, 2015, 12:22:18 PM »


"She says she pays $135 each month for unlimited yoga and other friends pay the same thing for CrossFit or cable. If you’re going to pay that much to care for your body and entertain your brain, then logic would dictate paying about the same amount to make sure you’re saving and spending your money in a safe way."


Holy logical fallacy, Batman.

zephyr911

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Re: "Why Paying for Financial Advice Makes Sense"
« Reply #2 on: April 06, 2015, 11:45:41 AM »
My favorite is The Motley Fool, formerly the champion of DIY investing and scorners of all paid financial advice, offering managed funds with up to a $10K entrance fee. I think that's annual, actually.