Academic Study Shows Investment Advice Waste of Money


Academic Study Reveals many large investors are “throwing away billions of dollars a year on worthless advice from investment consultants”.

Screen Shot 2013-09-27 at 5.04.29 AMThe Derivative Project, our retirement investor advocacy group, just tweeted a September 21 article in the Financial Times that reports a recent academic study found large investors are throwing away billions of dollars a year on “worthless advice from investment consultants.”  Not On My Nickel’s tools demonstrate the same concept is valid for every retirement investor.

As the Financial Times reported from this study:

“Since consultants do not disclose their individual recommendations, pension funds are allocating assets on advice the quality of which is impossible to judge,” said Mr Jones, who contrasted the situation with consultants’ “ruthless” scrutiny of fund managers.
“It is high time that pension funds or regulators required consultants to disclose their past recommendations. Unless investment consultants are ashamed of their performance, they should come out of the shadows.”

Not On My Nickel Provides the Tools to Determine if the Advice is Any Good

Not On My Nickel is the new service that gives you the tools and bona-fide education to determine if the advice you receive is providing better returns.  We believe the “proof is in the pudding.”  The rule is very simple.

Do you have five years past history of investment style and performance against an agreed upon, SEC approved, performance index that proves the Advisors “advice” will add value, after all fees?  If not, do not take the advice.  Go with what you know.  The risks are too great for your life savings.  You now have a more conservative option – invest directly with the top US portfolio managers that have 5, 10 and sometimes 15 year history of out-performing their relevant index.

Not On My Nickel Now Provides You An Option to Poor Investment Advice or Advice You Cannot Measure, while you save thousands of dollars 

Here are Not On My Nickel’s rules.  We provide the training. Invest in educating yourself:

1.  Past performance is not indicative of future performance, but it can be used as a guide.  Ideally only choose a portfolio manager with over 10 years of performance that outperforms their relevant index.

2.  There are only a handful, in the United States, of portfolio managers that fall into the requirement of Not On My Nickel’s Number 1 rule.  We give you the tools and education to find them. We do not give advice.  Not On My Nickel provides you with the transparency, the tools and the access to information for you to make an informed decision.

3. Eliminate the middleman fee:

  • It costs you more money and detracts from your performance, unless you have the “Proof” that their advice will deliver superior returns to the top US portfolio managers
  • It eliminates the risk that the advisor may put you into a poorly performing investment.  You are in control and no where your money will be and can watch it grow.
  • It eliminates the risk the advisor will put you into a product that enriches their bottom line but exposes you to a money losing scheme such as Charles Schwab’s High Yield Mutual Fund or auction rate securities
  • It eliminates the risk you will be subject to a Ponzi scheme.
  • It gives you peace of mind and the satisfaction of empowerment – you are in control, through transparency and tools of your destiny.

Remember the “proof is in the pudding.” Measurable results are the only thing that counts.  If the Advisor cannot give you, at a minimum, five years history of how their advice outperforms the returns of our nation’s top portfolio managers, do not pay them a fee.

Comments are closed.