Monday, March 12, 2007

Index Fund Advisors (IFA): AA for Hopeless (Actively Investing) Drunks

You can find the general site and just wander around at IFA.

However, they also have a great online e-book on a 12 step recovery program for active investors. It's a great read; if you're not convinced by the end of their book, nothing will change your mind.

Of course, they try to sell you their consulting services (but it's indirect and low key).

Before you pull the trigger, just note that what they are offering can be 80-90% performed by Vanguard funds, with no 0.80% advisory fee, commissions or 0.20% higher expense ratios.

If you really must use an advisor, Cardiff Park Advisors is excellent and has flat annual pricing. Total cost per year is around $1,500, which includes everything but the commissions.

On a $500,000 portfolio, this would save you about $2,500 per year vs. IFA's offering.

And no, I don't get a commission, rate cut, Ohio State basketball tickets or anything else for this. I just happened to have researched half a dozen DFA advisors, and CPA came out on top.

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