Due to extreme weather on the mountain where I live we have no power and just got phone service a few minutes ago. The battery on the lap top only lasts for so long so this will be short.
I caught up on some reading. Forbes had an article about choosing a planner over a big firms planning products. The planner featured, apparently, uses open ended funds (we're not talking Vanguard funds with 20 beep expenses) for the long part of her clients' equity exposure (we're also not talking about people with $20,000 in assets, if you catch my meaning). For the life of me I don't understand how a planner can use open end funds for wealthy people. It is wasteful on several levels. Funds always have fees and sometimes loads. On top of the fees to the fund the planner gets a fee. Also too many open end funds have very mediocre returns. It really shocks me the this goes on. Using the occasional fund as a tool is one thing, building a portfolio of mutual funds is ridiculous. But maybe its just me.
I have had some emails pile up that I will answer when the power comes back on. It is important to me to answer emails so please bare with me and my utility company.
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1 comments:
I suspect that planner has a good thing going. It minimizes work and if things go wrong s/he can share her clients outrage at the funds that goofed up. Nothing like a bit of "empathy" to show people you're on their side.
Plus they get the security of knowing they have a double layer of "experts." While I criticize the mainstream financial press for it's balance on a number of things, one thing that does get covered in the introductory books is the mixed results of managed funds, the high costs etc.
Highly educated wealthy people are simply choosing not to see. And of course some reporter will gush at the brilliance of their ignorance.
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