Yes, financial advisors are very much; buyer beware! Luckily I have too little to make it worth it... and in fact I have just transferred some of my savings I had experimentally put with a managed fund over to the passive fund I had the rest in as the former badly lagged the latter on returns....
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h4890
In response to this post@ChrisMayLA6 This is interesting. Over how many years did it lag?
Since we are currently in recession territory and unstable markets, it is to be expected.
Interest rates are coming down, and (in sweden at least) tax cuts coming in order to help the economy since employment figures are not good.
So my guess is that within 1-2 years, we'll start the next cycle upwards for 5-7 years or so. That's when more risky funds should start to outperform less risky ones (in theory).
@h4890
well, I had in it in the managed fund for three years, and the passive fund started recovery around 18 months before a rather anaemic recovery in the managed fund (hence the switch), so your estimate looks about right.... and fits (as it happens) with fiscal lags from interest rate policy
by Emeritus Prof Christopher May ;
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