No. of Recommendations: 0
Ah, the ramblings of the Wise!

I don't have any of the numbers to give back to you. This list of points is far wider-ranging than the retirement board.

From what I have read:

--Modern Portfolio Theory (MPT) has found that the PRIMARY factor for returns is asset allocation--what percentage have you in cash, bonds, various classes of stock (e.g., large cap, small cap, etc.), etc.

--A logical outgrowth of this is to invest in these asset classes (which have characteristic rates of return) through the lowest-cost means available. Typically, this means index funds.

--Around Fooldom, other techniques have been used to define an "asset class". Instead of using a set of members defined by Morgan Stanly, Standard & Poor's, or others, research has shown other techniques which seem to have a typically large characteristic return. Thus, are born Dogs of the Dow, etc. etc.

I believe most of the broker's statements can be refuted. Perhaps, for you, this person gives you advice which is worth the extra expenses. I think that he is blowing smoke on some of the points, particularly on mutual funds beating the S&P consistently.

By the way, you might want to ask him why it's better to compare against bank savings rates? Perhaps because his alternatives don't compare favorably with S&P 500 returns, which Vanguard can come very to duplicating?
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