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URL:  http://boards.fool.com/bait-and-switch-quotive-met-many-smart-people-26533877.aspx

Subject:  Re: Withdrawal rates in retirement Date:  4/4/2008  10:30 AM
Author:  Hawkwin Number:  62125 of 76418

Bait and switch:

"I've met many smart people who have no idea how to manage investments. A professional money manager should be able to pay for himself by earning at least more than the individual would on their own by at least their fee amount."



Except that many professional money managers do not beat the market averages


The OP stated, "would on their own" not beat the market.

There is a HUGE difference between those two.

Owners of Fidelity Magellan earned, on average, about 4% on their money while the fund returned in excess of 10% during the '90s. The reason for such a huge difference? Investors did not stay invested. Individuals, especially those with little to no prior investment experience are extremly prone to emotional decisions that cost them FAR MORE than a fee for managing their money.

That being said, it is my desire that people be provided with mandatory education so that my services would not be needed. Financial education in this country is so horrid that this problem is not going away. The internet has helped a lot, but not enough.
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