Quote:
Originally Posted by CaptainYooh
Pathetically managed, undeservingly compensated, unaccountable and, most of all, without any proven knowledge of how to make clients' portfolios grow consistently. Which was a major reason for me switching to self-managing all of my own portfolio.
I've had some money invested for 15 years in three diversified funds with Philips Hager & North, arguably one of the best managed mutual fund companies in Canada. In 2008, the annualized return of my portfolio with them was just over 1%. My own self-directed portfolio was several times better over the same period. This was a big moment for me, when I realized that they don't really know much more than an average interested and disciplined investor.
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Yeah that isn't at all what I mean. The issue for people in general who use advisors isn't purely about whether they got better returns. Surely that is a piece of it, but advisors provide all kinds of information and advice. I spend hours explaining concepts and helping people plan estates, retirement, debt, taxes and how to structure things.
The PH&N example is meaningless without knowing what you were invested in and why. I have clients that made money through the worst of 2008 and called me up worried that it was a ponzi scheme; that kind of anecdotal "evidence" doesn't mean that everyone should use me, or any advisor though. Its one persons experience.
I also take direct issue with the idea that we're "...undeservingly compensated, unaccountable and, most of all, without any proven knowledge of how to make clients' portfolios grow consistently." That's just pure garbage. What do you consider undeservingly compensated (not that undeservingly is a word to begin with)? In whose opinion? I'm hardly unaccountable to my clients, and frankly there are hundreds of options for dissatisfied clients to consider in terms of other advisors or doing it themselves. I'm not even going to get started on the point about getting better investment returns with you, because I think differently than you. I'm the kind of guy who values advice and pays professionals because I think they are more experienced and do a better job than I could. I pay for a barber, when the fact is I know how to use scissors. I pay for an oil change when I could do that myself, and pay for accountants and realtors when the time comes to sell my home. I could draft a will using a kit on my own, but I would pay a lawyer. You just have a different view of things, and that's OK. You don't have to deride my profession on your way to making that choice though.