Wednesday, July 6, 2016

Warn Kids To Be Wary Of Indignantly Defended Fees

Today’s fantastic family finance article is:

Indignant Fee Defender

“The lady doth protest too much, methinks.”
~Queen Gertrude, Hamlet

In Hamlet, Shakespeare taught us to be skeptical when someone tries a bit too hard to defend a position. When the defense turns to indignation, it’s time to double down on skepticism and due diligence — especially in the financial realm.

Today’s article provides a perfect example from people peddling investments.

“How dare you question or fees!”

“Our fund managers are experts!”

“Our fund managers work hard!”

“Index funds are for plebeians!”

Thou doth protest too much!

Teach your kids to peer past the indignation and focus on the financial facts.

If the facts say “dumb” low cost index funds repeatedly outperform “smart” high cost mutual funds, stick with stupid.

The data doth speak the truth.

No comments:

Post a Comment