Worry-Free Investing: Financial Advisors' Daily Digest

Worry-Free Investing: Financial Advisors' Daily Digest

A data-wielding Eric Nelson, CFA, principal of Servo Wealth Management, attempts to kill active management once and for all on today’s SA. He probably won’t succeed (though by all means click the above-linked article and see what you think), but his advocacy for a simple index-based investing approach merely magnifies and intensifies the incredulous questioning on the part of some DIY readers about what they’re paying an advisor for.

But I think that is the paradoxical point that he and other top-notch advisors want to emphasize. Once such advisors reduce investing costs (in Eric’s case through an indexing approach), investor fees can be better directed to the seemingly simple but in reality elusive process of defining objectives, planning for their realization and staying the course. Given all the trouble those with even impressive resources manage to get themselves into financially, that sort of service would be quite worthwhile if it led to a solvent and worry-free existence (financially speaking).

That said, candor compels me to once again acknowledge that in my years of being in this business, I have seen pretty much everything and its opposite given as the definition of worry-free investing by practitioners and clients alike. For that reason, I reiterate a previously expressed view that there needs to be a “match” between advisors and investors.

Your thoughts on all of the above are welcome in our comments section, as always. And below please find today’s links of interest to advisors:

  • Evan Powers on how to optimize investing in your Roth IRA.
  • Kevin Wilson on how the ACA has changed healthcare and dimmed its market outlook.
  • Ronald Surz: The dreaded September effect is upon us.
  • Deutsche Bank whistleblower rejects SEC reward, and criticizes SEC’s slap on the wrist.
  • American Funds: Why the number of shares you own is important.
  • Wells Fargo Asset Management: Not all dividend-paying stocks are overpriced.
  • Principal Financial Group: What do lawnmowers and retirement plans have in common?
  • Charlie Bilello: Knowing that big winners have big drawdowns, investors must control their emotions.