No. of Recommendations: 1
They could have put it into the Vanguard Index 500 fund and done better, I bet.

You'd win the bet. They undoubtedly would have been much better off. However, they wouldn't have known to do that. They needed someone to tell them to buy mutual funds. From their point of view their thinking was if you have a medical question, you consult a doctor. If you have a financial question you consult a financial advisor. They didn't know his advice wasn't great. But it was better than no advice.

FWIW, *I* didn't know about Vanguard index funds when I started investing. I started in 92-ish, and I bought two funds: Fidelity Magellan and Fidelity Contrafund, which I believe had front loads in those days. Why? Because that's what the sales lady at the bank suggested I buy. She was attractive and dressed well so I followed her advice. Why did I buy from the bank? I had a lot cash I had been saving and a bank clerk suggested I talk to the mutual fund lady. Given my own initial level of due diligence, I'm not going to pass judgement on anyone else's. :)
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