I always wondered how these guys could offer protection from stock market share price declines. Now, I understand. Very clever, and very helpful to retirees! Thanks for the explanation.
Essentially, they are narrowing the range of returns and charging higher fees for the service. In the absence of more efficient and less expensive ways to do the same thing, that's OK. Fund managers make higher fees, advisors get to charge for access and advice, and the investor gets lower risk-adjusted returns.
I always wondered how these guys could offer protection from stock market share price declines. Now, I understand. Very clever, and very helpful to retirees! Thanks for the explanation.
WM
Essentially, they are narrowing the range of returns and charging higher fees for the service. In the absence of more efficient and less expensive ways to do the same thing, that's OK. Fund managers make higher fees, advisors get to charge for access and advice, and the investor gets lower risk-adjusted returns.