Here’s how I would summarize their strongest objections (there are many others, both said and unsaid, of varying degrees of validity).
For retirement accounts and other long term investments, one can buy SPY US and/or IEMG US, for example, and get broad diversification for less than 15bps (0.15%) per year, whereas many managers charge 1%+. This eats huge percentages of a person’s life savings for little, no or negative useful work.
For mortgages, most non-standard mortgage types involve large fees and deceptive interest rates, especially for non-wealthy buyers, but the bigger issue is that the banks are getting huge government subsidies from their implicit and explicit guarentees and the roles of Fannie Mae and Freddie Mac.
I could go on, but there are certainly legitimate objections here.
Here’s how I would summarize their strongest objections (there are many others, both said and unsaid, of varying degrees of validity).
For retirement accounts and other long term investments, one can buy SPY US and/or IEMG US, for example, and get broad diversification for less than 15bps (0.15%) per year, whereas many managers charge 1%+. This eats huge percentages of a person’s life savings for little, no or negative useful work.
For mortgages, most non-standard mortgage types involve large fees and deceptive interest rates, especially for non-wealthy buyers, but the bigger issue is that the banks are getting huge government subsidies from their implicit and explicit guarentees and the roles of Fannie Mae and Freddie Mac.
I could go on, but there are certainly legitimate objections here.