2008 is painfully well-documented by financial journalists, but many are conflicted in their efforts. In one breath, they describe the ravaging effects to investors. But in the next breath, make predictions about where to invest in 2009. The reality is, however, until investors establish a true understanding of whom they can trust, they are vulnerable to the siren songs of active management that promise great wealth without regard to risk. The New Year provides a watershed moment for investors to finally avoid listening to those who do not harbor their best interests . This filter is a very simple one. It's the standard that requires fiduciaries to put their clients' best interests above their own.
To borrow a phrase from Amy Grant: "You've got to know who NOT to listen to." The New Year provides a watershed moment for investors to finally avoid listening to those who do not harbor their best interests (even if it is their own flawed judgment that works against their long-term best interests). This filter is a very simple one. It's the fiduciary standard and it requires fiduciaries to put their clients' best interests above their own, and at all times. For a detailed explanation of the fiduciary standard, click here.
Enlisting the services of a fee-only fiduciary can go a long way toward stemming the tide of deception that frequently travels in lock-step with active management and the brokerage industry.
Larry Swedroe aptly surmises, "Anyone who says active managers can win should wear a T-shirt that says, 'I can't add.'"
William Bernstein declared, "Brokers service clients the same way Bonnie and Clyde serviced banks."
And, in an almost prophetic stroke aimed at nursing the world through the impact of what was yet to come at the end of 2008, Vanguard founder, John C. Bogle released his latest book Enough.
In his book, Bogle states, "The rampant greed that threatens to overwhelm our financial system and corporate world runs deeper than money. Not knowing what enough is subverts our professional values. It makes salespersons of those who should be fiduciaries of the investments entrusted to them."
With no intent to alter the significance of what Bogle refers to as "Enough," IFA says "Enough!" to the illusions captured in the smoke and mirrors that drive Wall Street.
IFA says "Enough!" to the speculation that grinds down the value of investors' accounts while driving up commissions.
IFA says "Enough!" to the deception that lures trusting investors toward the elusive goal of market-beating returns, when reams of data and non-biased studies comprehensively reveal the folly that accompanies such a hope.
IFA says "Enough!" to the broken trust that will likely define 2008, if not the entire decade.
IFA urges investors to say "Enough!" and finally abandon the frustration that has plagued ill-fated attempts to beat the market. Hundreds of studies continue to show that market returns are the superior returns, and they come with zero conflict of interest. IFA advises on investable indexes that carry up to 81 years of risk and return data*. These investments are tax-efficient, globally diversified, low-cost, risk-appropriate and provide an excellent way for investors to capture market rates of return that are in keeping with an individual's risk capacity.
IFA advises clients to invest in investments that are tax-efficient, globally diversified, low-cost, risk-appropriate and provide an excellent way for investors to capture various market rates of returns that, as a whole, are in alignment with investors risk capacities.
IFA applies tremendous resources to help investors make sound investment decisions. The ifa.com website contains comprehensive and up-to-date data on Indexes and Index Portfolios. It also provides hundreds of articles and charts detailing landmark studies that pertain to virtually all investing strategies. We have posted dozens of IFA Films on youtube, iTunes and ifa.com, including interviews with some of the most highly regarded financial experts.
We are constantly add new information. Why… because when it comes to being a resource on proper and prudent investing, IFA will never say "Enough!"