writes:
> You are going to get what you pay for.
That's far, far, far from true in the financial services world.
Higher fees doesn't remotely mean one necessarily receives better
advice or services.
--
Rich Carreiro
"Rich Carreiro" <> wrote
> writes:
>> You are going to get what you pay for.
>
> That's far, far, far from true in the financial services
> world.
>
> Higher fees doesn't remotely mean one necessarily receives
> better
> advice or services.
What Rich said.
As one concrete example, mutual funds with higher expense
ratios have not been demonstrated to perform better than
funds with lower expense ratios, on average. On the
contrary, funds with lower expense ratios tend to have
better performance. One explanation for this is chasing
returns is a strategy based on past data that cannot predict
the future.
Both financial advisors and car salespeople will happily
take money one blithely throws at them, and there will be no
difference in portfolio returns or the quality of the car or
repair and maintenance service subsequently.