Merge

Of all of the commercials out there right now, the funniest are the E-trade commercials. One reason I think these are so humorous is because they have a significant level of truth in the underlying humor.

For ages, we've heard that "buy and hold" strategy is the only way to go. Hmm. Could it be because if you are out of the market, the person giving you advice won't be making any money? Even in the current circumstances, Investment Brokers are still dolling out such ridiculous advice.

In their defense, the market has dictated an approximate 1% management fee, and for 1% you can't expect much service. They're going to put you in what they think the best bet is for your money and let it ride. If investors want more service, more asset allocation and custom portfolios based on their individual risk assessments, then they're going to have to pay for it.

Isn’t it time to innovate?

Here's the problem though: 80% of professional money managers don't beat the market. So who are you going to pay higher rates to in order to get more "service?"

Wow. At the end of the day, some Investment Bank is going to innovate. I look forward to see what they come up with, because the current model surely isn't flying.