A quick review of a bunch of studies on the subject has shown that investors that use advisors fare much better than those that don’t. Including and above an advising fee:
Further, other studies have shown that in general people simply cannot overcome the biases that lead to poor decision making:
https://www.thebalance.com/why-average-investors-earn-below-average-market-returns-2388519
This sub and r/personalfinance generally tell people that advisors are unnecessary if they do their own research.
Unfortunately, the data suggests this is simply not true. Most (not all) people NEED someone acting as a road block to convince them to not make impulsive decisions.
The advising fee for fiduciaries has come down the past few years and many offer services in the 0.75% -0.95% range, or even an hourly fee. This sub should stop telling people to not hire fiduciaries. Many here are susceptible to the same biases. Just look at last month and how every other post was about “going to cash” “buying gold”, or trying to time the market.
I understand that some of you have the ability to buy and hold through major recessions and corrections, but it looks like the average person doesn’t, so they should use a fiduciary.
Submitted February 02, 2019 at 11:46AM by purpletree37 http://bit.ly/2DOFsFH
