A disproportionately higher number of WhereDoesAllMyMoneyGo.com readers than the general population might say “no”, but in reality this represents a very skewed sample. And that doesn’t mean that they are right, either.
The following are some of my views:
- Some investors currently using an advisor could probably be DIY investors
- Some DIY investors should probably be using an advisor
- If someone put a gun to my head and asked me what percentage of investors should be using an advisor I would probably say 9 out of 10 (or 90%)
- Investing/Personal Finance is about 90% psychology and 10% math
- Using a couch potato portfolio does not preclude using a financial advisor
- Indexing wouldn’t work if there were no active managers, it’s a symbiotic relationship, and it’s in equilibrium – right now indexing looks really compelling
- Not all financial advisors are good financial advisors
- Unfortunately, a lot of bad financial advisors can *sound* like good financial advisors
- The barriers to entry for becoming a financial advisor are way too low in Canada
- Really good financial advisors can be worth more than 1%/year in fees/commissions
- 1%/year in fees is a big deal, all other things being equal
- All other things are not equal
These are just some of the topics that I’ve decided to add to the Know Your Advisor eBook, and we’ll flesh them out one by one here on the blog too.