If you choose to believe the rhetoric that you might have recently heard, then I have some bad news: As it turns out you and I are un-American! Just when we thought we’d seen it all and heard every possible argument against our time-tested and recommended investment strategy, a so-called “expert” stretches for a new spin on the same old allegations. This time, the expert in question has resorted to name-calling, as reported in InvestmentNews:
The age old debate between active and passive management took an odd, patriotic turn at the Investment Company Institute General Membership Meeting on Thursday. “Index investing is positively un-American,” said Alan Reid, CEO of Forward Management LLC. “What you’re saying is ‘I want to be just a little bit less than average.’”
One could consider this misguided “advice” slightly amusing… that is if it didn’t cause some investors to decide that it’s their “civic duty” to try to beat the market. Advice ceases to be funny if it convinces even a few individuals to veer off course from adopting a solid, evidence-based investment strategy which has been carefully designed to meet personal goals and risk tolerances.
In a similar vein, if you’ve not yet had the opportunity to view the recently aired PBS Frontlineepisode, “The Retirement Gamble,” I encourage you to do so. While it contains some talking points with which I disagree, it does illustrate this singular truth: the vast majority of Americans are missing out on the fiduciary advice and solid financial education that they sorely need in order to successfully prepare for retirement. Instead, they are being misinformed – in some cases deliberately – by “experts” who may or may not have their clients’ best interests at heart (and we all know who they are, don’t we?). Furthermore, they are being (mis)led to believe that wageringand investingone’s life savings are one and the same. Let me be perfectly clear on that particular point: they absolutely are not. If you want to wager, go find a casino, if you want to invest, come talk to us.
In our capacity as your fiduciary advisor, it has been our long-held mission to help you understand, implement and keep true to your own individual long-term investment strategy, so that you can achieve your highest financial interests and meet your essential goals. It may sound corny but the truth is that those same goals are the life-blood that nourishes our great nation’s economy and strengthens its capital markets. And if that’s “un-American,” then I plead guilty as charged.
If you – my “un-American” friend – would like to review your own retirement and investment plans, give me a call so that we can schedule some time to talk.