I'm just starting out and a financial planner is trying to sell me on dollar cost averaging and systematic mutual funds. Basically you give them 50% of your first year's investments and they don't charge you a fee after the first year. The upfront fee amounts to about 2.2% of your total invested principle over the life of the plan, which is 15 to 25 years. Still, the future value of that 50% seems significant in the long run. This just seems odd to me... He couldn't do a very good job of explaining why this scheme was better than no-load low-cost index funds except to say "this is for long term investing and will ensure a large pool of investors who don't cut and run when the market falls." Still, I'm skeptical... I haven't read much about this type of fund on any discussion board or in books about investing.Am I being overly cautious or are my instincts to run away from this financial planner right? (I also posted this thread in the Learning To Invest folder... I need all the help I can get!)
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