Summary: Don’t use the financial management service. Buy ETF or Index fund instead.
Based on historical data, investing in the S&P 500 typically outperforms any management company. No active management has consistently beaten the S&P 500's performance in the market. Therefore, the value of financial service management may be overstated, as the cost-to-expense ratio often ranges from 0.0% to 0.8%. Over time, these fees can impact the investment returns.
Even when some management companies claim to have outperformed the market, it's essential to consider that their reported returns often don't include substantial dividends. Over the past 10 years, the end index went up 190%; however, the total return for the S&P 500 has been around 250%, with dividends reinvested. In summary, investing directly in the S&P 500 and diversifying by including bonds for added security is advisable.
Even when some management companies claim to have outperformed the market, it's essential to consider that their reported returns often don't include substantial dividends. Over the past 10 years, the end index went up 190%; however, the total return for the S&P 500 has been around 250%, with dividends reinvested. In summary, investing directly in the S&P 500 and diversifying by including bonds for added security is advisable.
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