Comments on: How would we do in a world without financial advisors? http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Pension reform: what choices do we have? | Stock Market News http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-21677 Pension reform: what choices do we have? | Stock Market News Fri, 09 Jul 2010 16:30:57 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-21677 [...] This is where many governments are omitting a viable option. Pensions do not all have to be publicly administered. In fact, Sweden, socialist Sweden of all places, has a partial privatized option. Although their pension contributions are a staggering 18.5% of payroll, 2.5% of this contribution is directed into a self-administered account. The taxpayer can pick various products within this fund or, in the absence of any choice, there is a default fund. The government does not manage the money (I wrote about this pension option previously at length). [...] [...] This is where many governments are omitting a viable option. Pensions do not all have to be publicly administered. In fact, Sweden, socialist Sweden of all places, has a partial privatized option. Although their pension contributions are a staggering 18.5% of payroll, 2.5% of this contribution is directed into a self-administered account. The taxpayer can pick various products within this fund or, in the absence of any choice, there is a default fund. The government does not manage the money (I wrote about this pension option previously at length). [...]

]]> By: Thicken My Wallet » Blog Archive » Pension reform: what choices do we have? http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-21609 Thicken My Wallet » Blog Archive » Pension reform: what choices do we have? Sun, 27 Jun 2010 18:51:58 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-21609 [...] This is where many governments are omitting a viable option. Pensions do not all have to be publicly administered. In fact, Sweden, socialist Sweden of all places, has a partial privatized option. Although their pension contributions are a staggering 18.5% of payroll, 2.5% of this contribution is directed into a self-administered account. The taxpayer can pick various products within this fund or, in the absence of any choice, there is a default fund. The government does not manage the money (I wrote about this pension option previously at length). [...] [...] This is where many governments are omitting a viable option. Pensions do not all have to be publicly administered. In fact, Sweden, socialist Sweden of all places, has a partial privatized option. Although their pension contributions are a staggering 18.5% of payroll, 2.5% of this contribution is directed into a self-administered account. The taxpayer can pick various products within this fund or, in the absence of any choice, there is a default fund. The government does not manage the money (I wrote about this pension option previously at length). [...]

]]> By: dj http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19813 dj Wed, 28 Oct 2009 17:13:56 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19813 Well the model for payment needs to change...when you tell them to sell something,they give you the song an dance act...when you are fed up an want to dump them, all hell happens...you now need an exit plan, so you don't get taxed to the wall. p.s. read TMW's $600 per hour post. Well the model for payment needs to change…when you tell them to sell something,they give you the song an dance act…when you are fed up an want to dump them, all hell happens…you now need an exit plan, so you don’t get taxed to the wall. p.s. read TMW’s $600 per hour post.

]]> By: This and That: W Expert Challenge and more… | Income Trust | Personal Finance | Real Estate SEO http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19790 This and That: W Expert Challenge and more… | Income Trust | Personal Finance | Real Estate SEO Fri, 23 Oct 2009 03:06:10 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19790 [...] Thicken My Wallet reported that DIY investors in Sweden choosing funds for their retirement accounts were their own enemies and unde.... [...] [...] Thicken My Wallet reported that DIY investors in Sweden choosing funds for their retirement accounts were their own enemies and unde…. [...]

]]> By: This and That: W Expert Challenge and more… | Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19789 This and That: W Expert Challenge and more… | Canadian Capitalist Fri, 23 Oct 2009 02:49:28 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19789 [...] Thicken My Wallet reported that DIY investors in Sweden choosing funds for their retirement accounts were their own enemies and unde.... [...] [...] Thicken My Wallet reported that DIY investors in Sweden choosing funds for their retirement accounts were their own enemies and unde…. [...]

]]> By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19788 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 23 Oct 2009 01:22:42 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19788 [...] Last and certainly not least, Thicken My Wallet has a fantastic post which asks what we would do in a world without financial advi.... [...] [...] Last and certainly not least, Thicken My Wallet has a fantastic post which asks what we would do in a world without financial advi…. [...]

]]> By: Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19782 Canadian Capitalist Wed, 21 Oct 2009 20:09:22 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19782 Thicken: Fair enough. I have no doubt that a *good* financial planner could be very valuable for investors unable or unwilling to go the DIY route. As you point out, a financial advisor who simply helps an investor avoid bad behaviour and provides counsel with tax matters and such are easily earning their keep. My beef always has been with advisors who are compensated handsomely and don't even invest according to an asset allocation policy. All they do is sell their clients investment products. Sadly, most advisors seem to fall under the latter category. Thicken: Fair enough. I have no doubt that a *good* financial planner could be very valuable for investors unable or unwilling to go the DIY route. As you point out, a financial advisor who simply helps an investor avoid bad behaviour and provides counsel with tax matters and such are easily earning their keep. My beef always has been with advisors who are compensated handsomely and don’t even invest according to an asset allocation policy. All they do is sell their clients investment products. Sadly, most advisors seem to fall under the latter category.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19781 admin Wed, 21 Oct 2009 19:26:19 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19781 CC- Thanks. I did not want to add to an already long post but I had the same thought and its made difficult by the fact: (i) private data is difficult to obtain whereas in Sweden it is a publicly administered system in a country with some of the best Sunshine Laws in the developed world so data tracking is "purer" sort of speak. You can never be sure how accurate the studies are in regards to returns of advisors; (ii) we assume advisors' only role is to be stock-pickers. If an advisor produced less than market returns but create larger than usual tax savings through its other services, is that a fair trade off? I don't have any answers other than to state throwing all financial advisors under the bus misses the fact we still have a responsibility to manage our own money. CC- Thanks. I did not want to add to an already long post but I had the same thought and its made difficult by the fact: (i) private data is difficult to obtain whereas in Sweden it is a publicly administered system in a country with some of the best Sunshine Laws in the developed world so data tracking is “purer” sort of speak. You can never be sure how accurate the studies are in regards to returns of advisors; (ii) we assume advisors’ only role is to be stock-pickers. If an advisor produced less than market returns but create larger than usual tax savings through its other services, is that a fair trade off?

I don’t have any answers other than to state throwing all financial advisors under the bus misses the fact we still have a responsibility to manage our own money.

]]> By: Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19780 Canadian Capitalist Wed, 21 Oct 2009 19:03:09 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19780 Excellent post that reinforces other studies showing a huge gap between market returns and investor returns. However, the question remains: we know investors on their own, on average, earn very poor returns but does having a financial advisor, on average, result in better outcomes? Studies such as the one Jean wrote about are not encouraging on this question -- using an advisor doesn't seem to improve on average returns. Excellent post that reinforces other studies showing a huge gap between market returns and investor returns. However, the question remains: we know investors on their own, on average, earn very poor returns but does having a financial advisor, on average, result in better outcomes? Studies such as the one Jean wrote about are not encouraging on this question — using an advisor doesn’t seem to improve on average returns.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/10/21/how-would-we-do-in-a-world-without-financial-advisors/comment-page-1/#comment-19779 admin Wed, 21 Oct 2009 17:19:47 +0000 http://www.thickenmywallet.com/blog/wp/?p=1270#comment-19779 Michael- I agree with you that DIYer come out ahead purely by the savings on not churning a portfolio but you have to admit that the returns are not very good in the Swedish example. Marianne- we really are our own worst enemy. Michael- I agree with you that DIYer come out ahead purely by the savings on not churning a portfolio but you have to admit that the returns are not very good in the Swedish example.

Marianne- we really are our own worst enemy.

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