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re: Northwestern Mutual - Should I?

Posted on 8/21/14 at 1:32 pm to
Posted by Ole War Skule
North Shore
Member since Sep 2003
3409 posts
Posted on 8/21/14 at 1:32 pm to
quote:

Again, the average index investor's ROR is something around 3-4%. So yeah, an advisor should be able to beat that or they should be fired. Don't mind me though, I have only been doing this for 15 years in real life and not on a message board.



you're arguing a point no one has made....the point actually being made is that by simply buying and holding a broad based market index ETF, any investor will outperform the vast, vast majority of 'experts' like yourself..this is not an opinion, the is the factual historical record that cannot be disputed.

whether money managers, hedge funds, mutual funds, or insurance salesmen, only a handful outperform the market...FACT
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 8/21/14 at 1:42 pm to
quote:

the point actually being made is that by simply buying and holding a broad based market index ETF, any investor will outperform the vast, vast majority of 'experts' like yourself..this is not an opinion, the is the factual historical record that cannot be disputed


Well, your argument does not reflect reality therefore it is bogus. It doesn't matter what might happen, it matters what actually happened. The average return is 3-4% in reality. That is what people made, so what the index did was irrelevant.
This post was edited on 8/21/14 at 1:44 pm
Posted by GoCrazyAuburn
Member since Feb 2010
34912 posts
Posted on 8/21/14 at 1:47 pm to
quote:

you're arguing a point no one has made....the point actually being made is that by simply buying and holding a broad based market index ETF, any investor will outperform the vast, vast majority of 'experts' like yourself..this is not an opinion, the is the factual historical record that cannot be disputed.


This isn't reality, however. If this actually happened, then there wouldn't be investment advisers.

ETA: I should amend that because there will always be people who would rather not worry about these things, and be willing to pay people to manage it. That won't change. There would just be less in the industry.

As I've already said in this thread, people don't pay an adviser to max gains in the good times, they pay them to minimize losses in the bad times.
This post was edited on 8/21/14 at 2:00 pm
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