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Fidelity Reviewed Which Investors Did Best And What They Found Was Hilarious
FYI: O'Shaughnessy: "Fidelity had done a study as to which accounts had done the best at Fidelity. And what they found was..." Ritholtz: "They were dead." O'Shaughnessy: "...No, that's close though! They were the accounts of people who forgot they had an account at Fi Regards, Ted http://www.businessinsider.com/forgetful-investors-performed-best-2014-9
Is this good advice? They might as well add, "Just keep your hands off your money so we can continue to suck our fees from your account."
So, is this good advice for someone in their late 40's or 50's? Is it good advice for someone nearing retirement? OK, maybe for someone just starting out.
And the chart - Maybe contributing to the average investor's poor returns vs. an individual asset class is due to too much diversification. Just a thought.
Why is it any different in your later years than in your younger years if you have the appropriate risk-reward allocation? There are a ton of retired investors who pulled their money out of the market during the great recession and never went back in. Those are the losers. Those are the ones with poor investor returns. To which I'll add, IMHO.
"Why is it any different in your later years than in your younger years if you have the appropriate risk-reward allocation?"
What is 'the appropriate risk-reward allocation' ? What is 'later years'? And, are you familiar with the Sequence of Returns?
Of course, someone who sold everything at the market bottom and never returned missed the grinding years of recovery. But perhaps being in their 'later years', they may have already earned enough to be satisfied.
Comments
Is this good advice?
They might as well add, "Just keep your hands off
your money so we can continue to suck our fees from your account."
So, is this good advice for someone in their late 40's or 50's?
Is it good advice for someone nearing retirement?
OK, maybe for someone just starting out.
And the chart -
Maybe contributing to the average investor's poor returns
vs. an individual asset class is due to too much diversification.
Just a thought.
AKAFlack
The absolutely terrible investment decisions that journalists make are something that just can't be emphasized enough.
"Why is it any different in your later years than in your younger years
if you have the appropriate risk-reward allocation?"
What is 'the appropriate risk-reward allocation' ?
What is 'later years'?
And, are you familiar with the Sequence of Returns?
Of course, someone who sold everything at the market bottom and
never returned missed the grinding years of recovery.
But perhaps being in their 'later years', they may have already earned enough
to be satisfied.