Are Investors As Dumb As This Study Says?

Over the past 10 years, investing has been easy…behaviourally.

That’s because the global markets experienced an almost non-stop rise.

But if we measure a big market run-up and then a decline, and then a run-up, do investors lose their heads?

Maybe. But are they as dumb as this study says?

Image by Pixabay

What do you think?

 

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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1 Response

  1. Brian says:

    Hi Andrew,

    I would like to thank you for introducing my family to the Etf world. My wife and I find ourselves in a unique situation and would like to hear what your thoughts are regarding the following;

    Male 53 Female 44. Just sold house inYVR net 1.4mm. No debt. Approx 400k is other assets. No tfsa or rrsp. Wife has a DB pension earliest 2032. We make 110k yr. We spend 70k. Own a Honda 4 yrs old. Would like a retirement income of 90K.

    Want to put 1.4 mm into play with an account for each of us. In each account a mix of local, US and International equity etf as well as bond and maybe REIT. Say 60/40 or 70/30. Need to load into RRSP, TFSA, and unregistered accounts.

    From your books the plan is to stick to a plan, no matter what. We can contribute to these accounts enough to max TFSA each yr for the next 12 years.

    Here is my confusion. On one hand we have Dan Bortolotti who charges around 1%. Jason Heath charges approx $4000 for a plan. Mark Zoril $95. On the other hand we have Robo Advisors like Wealthsimple, Wealthnest, and Wealthbar. These Advisors have low management /mer fees and seem to keep you on track with tax harvesting rebalancing etc. There is a criticism that Robo advisers are not the best choice for high net worth. Why?

    In our scenario, we are not risk adverse. We would benefit from a plan that all of the above seem to offer. If you were as novice as we are, with 1.4mm to put in the market for 13 years before we need to withdraw, what route would you go? Best bang for the buck?

    Mark Zoril /questtrade

    Fee based advisor

    Robo advisors

    Thank you in advance for helping this novice!

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