There’s one type of risk that seems positive, but can have very negative consequences. This might explain why many investors don’t see it coming until it’s too late. It’s called “longevity risk.”
Given a choice between brokers with an extensive rap sheet and advisors whose ethical conduct is unblemished, what’s the appeal of the rap sheet?
This is probably the first article you’ve read that extolls the benefit of ignorance. The ignorance I’m advocating is willful ignorance of information readily accessible to you.
Those of us in the financial media make big deal out of the results, which always show significant underperformance by actively managed mutual funds across almost all asset classes in both stocks and bonds.
The financial media loves to reference the wisdom of “investing pros.” This article is representative. Here’s the headline: Opinion: ‘No disrespect’ to Warren Buffett—but some investing pros says he’s dead wrong about this stock. The “pros” quoted are editors of “top performing newsletters”.
I’ve been a fan of robo advisors, almost since their inception. Most of them recommend portfolios of low management fee index funds in globally diversified portfolios. Their advisory fees are low. Recently, I’ve seen some cracks in the robo advisor façade.