Interesting Movie

[GeoffF100]

Here is an interesting movie:

https://www.ifa.com/indexfundsthemovie/

Lots of good stuff. Nonetheless, I think it falls into the very traps that it identifies. For example, they clearly believe (or believed) in over-weighting small cap and value. So did many others based on the past performance that they warn us about. That pushed the price up. Performance was not good staring from there. The future? Who knows?

Clearly, they have their agenda towards the end. Unbiased financial advice is impossible in the commercial world. No paid for adviser is going to say "don't bother pay me for my useless advice, just buy a tracker". OK, that is unfair. Most people are not willing to educate themselves. They pay the price.

[Shaker]

The advantage of using an adviser is also the tax planning, withdrawal strategies and generally not encouraging people to make knee jerk reactions when markets wobble. If I had enough time to learn the workings of car I would, however I don't, so I employ a mechanic. Same logic can be applied if someone wants to employ an IFA.

Looks a good film though - good find.

[GeoffF100]

The advantage of using an adviser is also the tax planning, withdrawal strategies and generally not encouraging people to make knee jerk reactions when markets wobble.

People may want help with tax planning. Withdrawal strategies? They should not need much help for that. There are plenty of good articles. Nonetheless, I have seen some pretty dumb advice on the web, notably from a Financial Planner. Here is what the founder of Vanguard, Jack Bogle, said about advice:

https://www.youtube.com/watch?v=MLgn_kVKjCE

He said that people do not need it, but some think they do. He said that Vanguard provides advice for those who think they need it. He was referring to ongoing advice on managing investments. Clearly, he believed that was a waste of time and money. He believed that we should just buy a tracker and be done with it. Knee jerk reactions? He said do not peek at what your investments are doing. That advice was free.

[GeoffF100]

Another related issue is illustrated by the sad tale of SVS Securities:

https://angeluslaw.co.uk/svs-securities ... o-clients/

SVS was an FCA regulated adviser. There are clear allegations that SVS, to put mildly, did not act in the best interests of their clients. Education is far preferable to blind trust. DYOR, as they used to say on the old board.

[OhNoNotimAgain]

Good story and well presented. But pitching DFA as an index fund is misleading. It isn't.