Bottom line is that there are no guarantees that active management will outperform index funds although it all can sound very tempting. Active management also comes with a higher price tag than index funds and ETF’s that provides an additional drag on performance. Hedge funds can easily charge 2% plus a performance fee as much as 20% of the annual gains. The Vanguard Index 500 charges a mere .05%. So, even if you pay an advisor to help you manage your investments and financial affairs, you will likely pay well under the average hedge fund expense!
My wife received a mailer in the mail recently that caught my eye. The return address was Flemings Steakhouse and Wine Bar. The outside of