Bad Old Days
Jonathan Clements | July 29, 2017
“STOP PULLING my leg, Grandpa. You’re kidding, right? Is it really true that people:
- used to believe they could beat the market?
- paid 2% of assets and 20% of profits to hedge fund managers?
- got their stock picks from a guy screaming on the television?
- thought cash-value life insurance was a good investment?
- believed that brokers would act in their best interest?
- studied stock price charts to figure out what would happen next?
- bought and sold exchange-traded index funds like crazy?
- were given 30 investment choices in their 401(k) and left to figure it out on their own?
- treated top money managers like they were rock stars?
- retired and all they had to live on was Social Security?
- didn’t object when companies spent billions buying back shares to disguise the dilution caused by employee stock options?
- bothered to listen to the forecasts of market strategists?
- paid 1% a year to financial advisors and all they got in return was a portfolio of mutual funds?
- imagined they could make money with a variable annuity charging 3% a year?”
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