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If you have a financial advisor, you probably like and trust him or her. Otherwise, why would you be taking their advice? In many cases the advice you get from your financial advisor will be good, helpful and trustworthy.
But in other cases, maybe not so much.
There is increasing evidence that this was no anomaly. In fact, one study found that 66% of fund managers could not match S&P results. There’s a third dirty little secret of active financial advisors, which is that many of them actually own index funds themselves.
There is a law pending that next year all financial advisors must be fiduciaries. Unfortunately, the financial services industry has attacked it with four different lawsuits to get the law struck down. In the meantime, if you have a financial advisor it would be a really good to ask if she or he is a fiduciary. Second if you have a 401(k) your best bet would be to invest in low-cost index funds and then just leave them alone. Finally, if your 401(k) Includes fees higher than 1%, you might want to have a talk with your employer. Failing that, you might open an IRA with a company such as Vanguard that has very low fees and then, once again, invest only in low-cost index funds.