From 1980 to 2006, the U.S. financial services sector grew from 4.9% to 8.3% of GDP. A substantial share of that increase represented increases in asset-management fees. Excluding index funds (which make market returns available even to small investors at close to zero expense), fees have risen substantially as a percentage of assets managed. In… Continue reading →

Most folks are savvy about prices, at least when it comes to inconsequential purchases, say, paper towels at the grocery store. Retirement investing advice? That’s more complicated. Consider paper towels. Brand A is your standby, you’ve used it for years and it gets the job done. But Brand B is new on the market and… Continue reading →

The interesting thing about pricing is that people almost always want to spend as little as possible — unless they think the product is special, different or rare. Then the sky’s the limit. The cost of investment advice is no different. Consider perfume. It’s one of those products that retailers simply can’t discount. Department stores… Continue reading →