seanimal wrote:1% is a paltry sum for someone who doesn't want to have to engage with the details. and for them, the moment that the 1% becomes a big number in real terms is also the point at which the 1% feels like an obvious bargain
it's all well and good to be like "1% reinvested yoy is better than 1% cost" when completely ignoring the opportunity cost of trying to do so. ain't tryna sort through lots of noisy information to make a rounding error's worth of money during the time that i could be [insert anything enjoyable here]
I understand what you are saying, but that 1% adds up a lot faster than you are letting on. A year later is 2%. After 10 years, its 10%, and since that money should have been compounding in your investments, its probably closer to 13%. It isn't a rounding error. Its SIGNIFICANT. Hundreds to hundreds of thousands of dollars. For someone that is just getting started in investing, it is all the more important to learn how to manage your own funds so that you know what you're doing (which is NOT hard) when you have more funds down the line.
And I also think you are making investing sound WAY too complicated. It can be EXACTLY as uncumbersome as using a financial advisor with a very modest amount of time spend setting it all up to begin with, which is no different than the amount of time spent talking with or shopping around for an advisor. There is no opportunity cost for owning an index fund. You literally don't have to do a thing.
Tiger linked to a Boglehead thing back there. All anyone has to do is listen to Bogle talk for like 30 minutes, and they will know everything they need to know for investing for the rest of their lives. Its less time spent than typing out message board conversations.