MORE BS FROM THE INVESTING SHARKS
I just watched a video with the CEO of a “robo investor” company who had the nerve to say that Warren Buffett’s financial advice to only buy low cost index funds doesn’t work anymore. To refresh everyone’s memory, Warren recommends putting 90% of your money into an low low cost fund like the S&P 500 and keeping 10% in cash.
This fellow asserts that you can do better by giving your money to his robo firm because his firm will be able to implement tax loss harvesting strategies on your behalf. He claims this could boost returns by O.75% per year.
Unfortunately what he fails to mention is his firm charges 0.50% per year to manage your money. He also forgets to mention that the vast majority of savers will be using their RRSP or TFSA accounts to invest. These accounts are tax exempt so there is no value to using tax loss harvesting.
In general I tend to believe robot investing firms are not a terrible choice if you absolutely have no interest in learning basic investing strategies that you see in my blog. But once again we are reminded that the investing industry is not your friend and will withhold important information in their quest to get more money from you.
Please don’t forget that.
I’m a department head for a high school in Toronto. I graduated from the Ivey School of Business at Western University and have been a DIY investor for over 20 years.