You know that there’s no such thing as a stock picking expert and that most actively managed mutual funds can’t even beat their indexes.
So if you’re being sold on investing with a broker or in a “proven” mutual fund, there’s a legitimate question you have to ask yourself: why?
Obviously, the salesman is trying to make money off of your investments. But think about that for a second. If he’s selling you on his expertise or how well his fund has performed, why does he need you to pay him for that?
In his book, The Dirty, Filthy Lies My Broker Taught Me and 101 Truths About Money & Investing, abundance coach Mark Matson lays it out perfectly:
If They Knew What Was Going to Happen Next, They Wouldn’t Need Your Money
Some fund or stock is always making double or even triple digit returns. If brokerage firms had any real knowledge of which stocks were going to take off, they wouldn’t need to invest your money. They would invest their own and keep all the profits for themselves.
‘Nuff said.
(photo: rednuht)
