- First, financial entertainers are not legal fiduciaries and therefore collect little if any pertinent information from you before handing down their gumball-machine recommendations.
- Second, you never hear about the [many] cases where their advice went wrong. Do you really think they would publish or repeat that?
- Third, because their companies are virtually all owned by Wall Street they tend to be biased in favor of products, services & advice peddled by Wall Street.
- Their bad math, limited knowledge and resulting bad advice go largely uncontested.
Finally, for retirees one of the largest income planning risks is sequence of returns risk. If you've projected that the historically back-tested portfolio you've assembled will give you an adequate average rate of return for the rest of your life, as you draw it down, have you considered the effect of three years in a row of negative results? Using average returns fails to take into account the effect of withdrawals in declining years, declines from which it is often impossible to recover.