Rebalance Investment Committee Member Burton Malkiel on how Rebalance IRA provides investors with personalized guidance in a cost-effective way.
Transcript
Burton Malkiel: I think what Rebalance IRA has been able to do is give that personal touch, but to do it in a low-expense way.
Many investors do want and need somewhat of a personal touch. When you are in a period when the world was falling apart, as it was in 2008, it is useful to be able to get on the phone and talk to a knowledgeable person who says, “Look, you are going to be all right. Stay the course.”
People who do not have that will often just say, “I am going to sell out. I just cannot take it anymore.”
What Rebalance IRA is going to be able to do, though, is provide that personal touch without the expense of a brick-and-mortar operation. If you do this with a shop on the street where you come in and sit in a comfortable chair in a broker’s office, that is very expensive, and that is why those expense ratios are so high.
What Rebalance IRA will do is try to provide that personal touch, which is needed in some cases, while allowing investors to have access to a knowledgeable person in a cost-effective manner over the telephone.
