Here’s some valuable advice to maximize returns. Other than rebalancing every year or so (which is not necessary if you own a target date retirement fund, because those funds automatically rebalance), ignore your account statements.
If you lapse into a lecture about the overwhelming evidence supporting passive investments, remember you might as well be showing the prospect an article about bird feeding.
Anyone who knows the data understands actively managed funds are simply a scheme to transfer your wealth into the pocket of fund families that don’t have the expertise to “beat the market.”
Harry Markowitz is a real expert – and that’s an understatement. He holds a Ph.D in economics from the University of Chicago. His list of publications in prestigious journals is extensive. In 1990 he shared The Nobel Prize in Economics for his work on portfolio theory.
I’m going to go way out on a limb here. I assume the investment recommendations you’re getting from your broker are vastly different from what Eugene Fama would advise.
Labeling, especially with an expectation attached, is a powerful force in converting prospects into clients.