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Wouldn’t it be nice to have a professional money manager offering a solution whereby he would be paid according to how much money he would make for you? Why are they always charging commission and extra fees when most of them can’t even manage to beat the market? If you stop and think about it, the whole industry is actually quite amazing…. seeing that there are numerous studies that prove than over 80% of the professionals fail to beat the market, it is really surprising that they get any business at all when an investor could simply invest in a total market ETF and pay under 0,50% commission!

Why is the industry thriving? Consumers lack the confidence to accept that they could do it themselves? People still believe that the ‘professionals’ offer better returns? From a psychological point of view, investors feel less responsible for bad performance if they can blame someone else?

People always want to ‘hit a home run’ and don’t believe an ETF will alow them to do so? We feel that it is high time for two things to happen: * Private investors should ‘wake-up’ and start managing their own money through a balanced and diversified ETF portfolio.

Depending on their profile, they can use ETFs for more aggressive sector plays or even to take ’short’ positions. Furthermore, the Enterprising Investor can decide to allocate a percentage of his portfolio to individual stock plays. * Professional money managers should stop using complex and obscure fee structures and commissions.

If you think that you are good enough to manage money for someone else, then this would imply that you can deliver better return and therefore beat the market or benchmark index. Therefore, show us how confident you are in your money management capabilities and only charge when you have managed to beat the market. Assuming you can do this, you could even charge 50% of the profits!

We are well aware that even our great grandchildren will never see the latter point happen but it would be refreshing to see a bit more of the former starting. And who knows, if private investors start to change their ways, there might be some money managers out there that may start to move in the right direction too!





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