top of page

Why You Need to Know More Than Financial Experts

An interesting article by Daniel Solin, one of my favorite writers.

Enjoy and learn!, Steve  ====================

On January 11, 2013, Yahoo’s Daily Ticker did an interview with Amanda Steinberg, founder and CEO of Daily Worth. The piece was entitled: Why You Need to Know More Than Your Financial Advisor. While some of the advice was helpful, most of it was just wrong.

Steinberg correctly urges investors to understand the fees they are being charged. In addition to advisory fees, she states that “certain” ETFs and mutual funds “might” have additional fees. The reality is that almost all ETFs and mutual funds charge a management fee called an “expense ratio”. What’s important to remember is that the expense ratios of ETFs and index funds are significantly lower than those charged by actively managed funds (where the fund manager attempts to beat a designated benchmark). Steinberg should be cautioning her readers and viewers against buying actively managed funds and directing them to the research indicating that expense ratios are the best predictor of performance of mutual funds.

1 view0 comments

Recent Posts

See All

Are Equity-Indexed Annuities a Safe Investment?

This article explains why I NEVER recommend indexed annuities to clients.  Please let me know if you have any questions. Steve =========================================== A tweet pitching equity-index

Avoid The Recency Pitfall

Larry Swedroe does a great job of talking about the importance of re-balancing.  Steve ============================================= Last year, U.S. real estate investment trusts (REITs) were the best


bottom of page