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re: Northwestern Mutual - Should I?

Posted on 8/21/14 at 12:22 pm to
Posted by GoCrazyAuburn
Member since Feb 2010
35020 posts
Posted on 8/21/14 at 12:22 pm to
quote:

there is little evidence empirical or otherwise that using an investment professional will yield a better outcome.


I would love to see some full studies on this. Especially to see if they break it down between planner and brokers, which I would assume they do not. Not saying it isn't true, but the fact that over 1/3 of Americans have nothing saved for retirement. Further that with looking at 1990-2010, the average individual investor only got 3.49% compared to the market's 7.81%, i just find it a bit suspect.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37313 posts
Posted on 8/21/14 at 12:35 pm to
Well, the "average investor" freaks out and pulls out of the market at irrational times, which completely throws off the average return.

Yes, if an average investor truly put their money in an index fund and left it alone, they would outperform most investment funds. But that doesn't happen in the real world.
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