Do You Want the Best Funds?

I want the best funds!  Who doesn’t?  Do you?  Of course you do.  Aren’t there funds out there that really are the best funds?  The ones that will protect your investments when things aren’t going well but take full advantage of the market rallies as well. Funds that have the really, really smart people that run them.  The people that are smarter, and more brilliant, than your normal smart people.  People with unique, innovative strategies, that can identify performance and trends and momentum and growth before they are identifiable.  People that have a system for picking stocks or bonds that other investors haven’t figured out yet.  If so, shouldn’t you invest in those funds??!!

If you want those funds, there are advisors who, for a “small” fee, can get them for you.   You see, to pick the best funds, they have developed their own unique, highly sophisticated, proprietary systems that you could never understand.   These systems might involve algorithms, probing interviews with fund managers, deep statistical analysis, and calculus beyond your comprehension.  But just in case the awesome funds that they have picked out for you using their secret, valuable techniques don’t quite work, don’t worry.  Relax – they have got you protected with their watch list. With their watch list, you can go ahead and live your life because they are watching your funds.  If any of the funds they are recommending slips up, well then, they will just go get new, better funds!

This is what some advisors do – one way they bring value – how they “enhance” your wealth (their’s too, of course).  They are watching the people that watch your stocks and bonds so they can get the best ones for you.  Come to think of it, shouldn’t there be another layer of advisors that watch the advisors that are watching managers?  Hmmm.  Wouldn’t that make sense?  What a great marketing idea for financial firms service for investors.

On the other hand, you could simply use low-cost index funds, set-up a simple well-diversified portfolio and not hassle with all of this.  But maybe you really don’t like your money and would rather just give it away.  Or maybe you feel like you are going to have so much in your retirement that it is ok to let the the financial services industry have it.  Or maybe you just feel like the financial services industry is a good place to donate your money, instead of your church or favorite cause.