Listen "Stock Talk - Ep 96 - Why are advisor designed portfolios so complex?"
Episode Synopsis
For some reason, we tend to gravitate to making decisions that are complex rather than going for a more simple elegant solution. We find the rational and thought process that incorporate words we've never heard of, lengthy math formulas, and fancy charts to be the validation that we need in order to take our investments to the next level. In the investment industry this is quite evident in the types of portfolios that financial professionals design for their clients. The reality is a simple portfolio of low cost baskets of assets are suitable enough for most investors, but for some reason, we never see these type of portfolios created. Why is this? Well Alan Roth penned a piece trying to figure out why the investment industry struggles to keep portfolios simple. In this episode I speak to this and offer some takes.
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