Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

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Nathan Drake
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Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Nathan Drake »

Discussion starts at 1 hr 29 mins

https://youtu.be/Nl6HVMsu9PQ

Cliffs:

-Someone earning 150k and getting 6-8% on index funds won’t be able to retire

- younger generation needs 15-20% returns, which he claims his management sets out to achieve

-index funds don’t make sense because you don’t want to basically invest in every company. Compares it to dating (you wouldn’t want to date everyone in high school)

- doesn’t want to invest in dying industries like oil and railroads

- guy is big into tech stocks (apple/Tesla), his strategy is to never sell high conviction stocks

Thought it was interesting just how arrogant some of these active fund managers are and completely oblivious to their inability to predict the future.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by financialheadache »

I've had a few pleasant conversations with Ross before eventually having to unfollow him on social media. He is sort of that prototypical Californian wealth management aggressive confidence alpha. I wanted more analysis and facts, and less emotion.

I've been on the same side as him with several stocks, but I feel like he is that CNBC type that loves the attention. They know they will get sound bites from him, so they continue to give him solid air time.

I don't think he actually believes himself when he says something like this - but he definitely wants your business! (what financial advisor doesn't?) What are his actual returns like compared to a QQQ or tech-heavy index fund including fees?
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by H-Town »

He set his fund up for failure. I wouldn’t invest a penny in his fund. Investors don’t need higher return than the market to retire.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by CABob »

Funding retirement for whom? The advisor?
:twisted:
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by esteen »

CABob wrote: Mon Apr 12, 2021 1:57 pm Funding retirement for whom? The advisor?
:twisted:
:P
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by firebirdparts »

Sounds a lot like "you might as well give your money to me."
A fool and your money are soon partners
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by fwellimort »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm-Someone earning 150k and getting 6-8% on index funds won’t be able to retire
Wait what.
If I can get 6~8% with a '150k income', then I'm excited. Sounds like great times to come.

I'm a fool. :beer
I'm fine with accepting the so called 'lower returns' of only 6~8%.
I was expecting more of a relatively flat gain (after inflation) the next decade. Wow. Markets sure are generous.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by surfstar »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm Thought it was interesting just how arrogant some of these active fund managers are and completely oblivious to their inability to predict the future.
They're in sales. The "client" is purchasing what they sell. Which of course is not a guaranteed rate of return, only a guaranteed higher ER than index funds!
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by nisiprius »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm...doesn’t want to invest in dying industries like oil and railroads...
The Voya Corporate Leaders Trust never trades, and the portfolio has been frozen in time except for mergers and bankruptcies. As a result, it is, today, 42% invested in Union Pacific Corp, which suggests that Union Pacific Corp must have grown faster than most of the other stocks in the portfolio.

A quick check shows that Union Pacific Corp (blue) has done a pretty good job of beating the S&P 500 (orange) for as far back as Morningstar can chart it and has done really well recently.

"Dying industry" my foot.

Source

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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by BogleFan510 »

Watched video. Not horrible dialog actually, but wouldnt invest with him.

Likes tech, energy focused indexes.
Last edited by BogleFan510 on Mon Apr 12, 2021 2:46 pm, edited 1 time in total.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Nathan Drake »

financialheadache wrote: Mon Apr 12, 2021 1:48 pm I've had a few pleasant conversations with Ross before eventually having to unfollow him on social media. He is sort of that prototypical Californian wealth management aggressive confidence alpha. I wanted more analysis and facts, and less emotion.

I've been on the same side as him with several stocks, but I feel like he is that CNBC type that loves the attention. They know they will get sound bites from him, so they continue to give him solid air time.

I don't think he actually believes himself when he says something like this - but he definitely wants your business! (what financial advisor doesn't?) What are his actual returns like compared to a QQQ or tech-heavy index fund including fees?
Yeah his personality comes across as a used car salesman. He seems like he may be fun to have a beer with and share a conversation but I wouldn’t want to invest my money with him.

He comes across as the stereotypical active fund manager that really hasn’t dived into the actual long term data (or he has, but doesn’t want to admit it because revealing it would lose him clients)
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by mikejuss »

CABob wrote: Mon Apr 12, 2021 1:57 pm Funding retirement for whom? The advisor?
:twisted:
Ha!
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by cheezit »

So the quote, starting at 1:30:45 of the video linked in the OP, is:
If you actually figure that out in the calculator, you're 28 years old, you want to retire at 65, you earn 6 or 8 percent, and you make $150k per year, what you will figure out is you cannot retire.
It's actually pretty easy to test this claim! Given that the context for this quote was discussing a hypothetical robo-advisor portfolio comprising "broad-based index funds" and "some bonds", and he stated the assumption of 10% annual returns on stocks, we can put together a Monte Carlo calculation/estimate of the performance of a stock-bond portfolio of index funds with 6.65% CAGR (mean of the 6-8% portfolio returns range he provided, minus 0.35% assumed robo-advisor fee) and a reasonable assumed portfolio volatility of 9.1% (actual volatility of a 40/20/40 portfolio of VFINX, VGTSX and VBMFX since the inception of VGTSX) and see how it does in a projected 35 year accumulation phase (65 - 28 = 37, but PV allows 35 or 40 year periods in its Monte Carlo sim) with $150,000 starting salary, 2.25% inflation (current breakeven inflation for 30yr TIPS vs nominal Treasurys), and 17% savings rate which exactly fills the 401(k) and Roth IRA contribution limits for an individual. Doing so, after 35 years (so 2 years of accumulation left in Gerber's scenario) we get a median portfolio value of $4,441,927 nominal/2056 dollars or $2,066,269 real/2021 dollars . Per the 4% rule, this would give us an annual income of roughly $82,650 (2021 dollars) from the investment portfolio, plus approximately $42,216 annually in social security income for a total annual income (in constant 2021-equivalent dollars) of $124,866 before taxes. There are some caveats here wrt. when you start taking SS payments, order of withdrawals from the traditional 401(k) and the Roth IRA, etc, but in general replacing a working-year income of $150k - $22500 = $127500 before taxes with $124,866 before slightly-more-complicated-taxes is not a "you cannot retire" scenario IMO. And this is before you account for the fact that this is two years before accumulation ends, and 17% is not some massive savings rate on a $150k/year income.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by mikejuss »

BogleFan510 wrote: Mon Apr 12, 2021 2:26 pm Funny because with about those kind of returns and income level I retired at 53 and am about to hit 8 figures. We find it hard to spend our free cash flow, much less worry about running out of money.
Wow. How much did you invest each year, and for how long have you been investing? Congrats!
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by celia »

If you make $150K a year while working, you are likely maxing out your retirement accounts and will have maximum SS and possibly a pension. No-one says your savings has to provide your entire support in retirement.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by BogleFan510 »

Over shared so I removed it. Started buying stocks when I was 13 yrs old. Many winners and losers. Bogleheads wiki is the best retail investor advice.

Actually watching it now and through 30 minutes he actually gives some good advice, like dont look at you portfolio too frequently. Buy and hold long term, dont trade on volatility, etc. Real estate can be good because tough to sell as example of behavior finance issues. Only 30 min into it though. Wont last 2 hrs., but Ive heard much worse money management philosophies.
Last edited by BogleFan510 on Mon Apr 12, 2021 2:56 pm, edited 3 times in total.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by alpine_boglehead »

To counter the FUD (fear, uncertainty and doubt) being spread again and again with a quote borrowed from Churchill ...

"Index funds are the worst form of fund, except all those other forms that have been tried from time to time" :sharebeer
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by mikejuss »

BogleFan510 wrote: Mon Apr 12, 2021 2:48 pm Over shared so I removed it. Started buying stocks when I was 13 yrs old. Many winners and losers. Bogleheads wiki is the best retail investor advice.

He gives some good advice, like dont look at you portfolio frequently.
I didn't mean to put you on the spot. Anyway, I wish I had the gumption to invest as a teenager. I'm glad to hear you recommend a Boglehead approach to investing.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by phxjcc »

surfstar wrote: Mon Apr 12, 2021 2:15 pm
Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm Thought it was interesting just how arrogant some of these active fund managers are and completely oblivious to their inability to predict the future.
They're in sales. The "client" is purchasing what they sell. Which of course is not a guaranteed rate of return, only a guaranteed higher ER than index funds!
Sorry, but you are wrong.

The customer is the advertiser on CNBC.
Mr. Gerber is providing editorial content in return for consideration by CNBC, which makes CNBC his customer.

Why?
So people like us knuckleheads say “CNBC” three times in two sentences.
🤪
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by BogleFan510 »

mikejuss wrote: Mon Apr 12, 2021 2:50 pm
BogleFan510 wrote: Mon Apr 12, 2021 2:48 pm Over shared so I removed it. Started buying stocks when I was 13 yrs old. Many winners and losers. Bogleheads wiki is the best retail investor advice.

He gives some good advice, like dont look at you portfolio frequently.
I didn't mean to put you on the spot. Anyway, I wish I had the gumption to invest as a teenager. I'm glad to hear you recommend a Boglehead approach to investing.
Dont listen to me. Im a random internet stranger, lol. I was lucky my dad opened a Charles Schwab account at their second retail location and we watched wall street week together and discussed it.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Nathan Drake »

cheezit wrote: Mon Apr 12, 2021 2:38 pm So the quote, starting at 1:30:45 of the video linked in the OP, is:
If you actually figure that out in the calculator, you're 28 years old, you want to retire at 65, you earn 6 or 8 percent, and you make $150k per year, what you will figure out is you cannot retire.
It's actually pretty easy to test this claim! Given that the context for this quote was discussing a hypothetical robo-advisor portfolio comprising "broad-based index funds" and "some bonds", and he stated the assumption of 10% annual returns on stocks, we can put together a Monte Carlo calculation/estimate of the performance of a stock-bond portfolio of index funds with 6.65% CAGR (mean of the 6-8% portfolio returns range he provided, minus 0.35% assumed robo-advisor fee) and a reasonable assumed portfolio volatility of 9.1% (actual volatility of a 40/20/40 portfolio of VFINX, VGTSX and VBMFX since the inception of VGTSX) and see how it does in a projected 35 year accumulation phase (65 - 28 = 37, but PV allows 35 or 40 year periods in its Monte Carlo sim) with $150,000 starting salary, 2.25% inflation (current breakeven inflation for 30yr TIPS vs nominal Treasurys), and 17% savings rate which exactly fills the 401(k) and Roth IRA contribution limits for an individual. Doing so, after 35 years (so 2 years of accumulation left in Gerber's scenario) we get a median portfolio value of $4,441,927 nominal/2056 dollars or $2,066,269 real/2021 dollars . Per the 4% rule, this would give us an annual income of roughly $82,650 (2021 dollars) from the investment portfolio, plus approximately $42,216 annually in social security income for a total annual income (in constant 2021-equivalent dollars) of $124,866 before taxes. There are some caveats here wrt. when you start taking SS payments, order of withdrawals from the traditional 401(k) and the Roth IRA, etc, but in general replacing a working-year income of $150k - $22500 = $127500 before taxes with $124,866 before slightly-more-complicated-taxes is not a "you cannot retire" scenario IMO. And this is before you account for the fact that this is two years before accumulation ends, and 17% is not some massive savings rate on a $150k/year income.
Excellent post. I really scratched my head at that comment of his. Either he expects inflation to be much higher (and his quoted 6-8% after inflation is much lower), or he assumes a 17% savings rate isn’t achievable
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Alaric »

You're trying to make 10, 15 percent over the long term, maybe 20. That's how you make money and build wealth.
Sounds like a straightforward plan. Just make 20% CAGR over 40 years. I wonder why more people don't execute that strategy.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Afty »

“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by RadAudit »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm -Someone earning 150k and getting 6-8% on index funds won’t be able to retire
There are many simulations; but, there is only one true test.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by philpill »

paraphrasing ny times:
if you think an individual mutual fund is better than s and p 500 index, it is like walking thru a dynamite factory with a lighted candle. you may get thru but you are still an idiot!
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by ReadyOrNot »

So he says the younger generation will need returns higher than Bernie Madoff or Dave Ramsey were aiming for? Great reason to try for higher returns or higher risk.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by watchnerd »

Alaric wrote: Mon Apr 12, 2021 3:08 pm
You're trying to make 10, 15 percent over the long term, maybe 20. That's how you make money and build wealth.
Sounds like a straightforward plan. Just make 20% CAGR over 40 years. I wonder why more people don't execute that strategy.
I should be able to hit $6B in 40 years at that rate.

I don't know why I didn't think of that.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by cos »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm -index funds don’t make sense because you don’t want to basically invest in every company. Compares it to dating (you wouldn’t want to date everyone in high school)
To each their own! :beer
Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm Thought it was interesting just how arrogant some of these active fund managers are and completely oblivious to their inability to predict the future.
I think you're being a little too charitable here. Sometimes it's mere arrogance, but other times it's outright deception. These people want your money, and they'll do whatever it takes to get it. If that means twisting the truth, so be it, so long as the profits outweigh the legal fees.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Thomas93 »

I think Gerber Kawasaki gives the option of charging an hourly fee instead of charging a management fee for assets under management.

So I think they charge $350/hour for a financial plan that you can implement on your own. (Or you can pay management fees or something like maybe 75 or 85 bps, depending on how much you have invested. Includes ongoing financial planning, portfolio management and quarterly reviews.

Personally I'd rather just go with a three fund portfolio myself. And Vanguard PAS if I wanted to outsource.

But I applaud them for giving the hourly option in their fee structure, which most places don't do. I don't know of any bank that does. The fees there seem hidden and not at all transparent.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by renter »

:-D :D
CABob wrote: Mon Apr 12, 2021 1:57 pm Funding retirement for whom? The advisor?
:twisted:
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by delamer »

BogleFan510 wrote: Mon Apr 12, 2021 2:26 pm Watched video. Not horrible dialog actually, but wouldnt invest with him.

Likes tech, energy focused indexes.
Obviously an original thinker...
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by garlandwhizzer »

One of the very few things I am confident about in the world of investing is that Ross Gerber has a zero probability of producing 15% - 20% compound annual long term returns. I believe it is true that our future investing is not going to be nearly as generous to us as the past 40 years has been but that is not a sufficient reason to buy investing snake oil from a huckster. His return promises are absurd. If he can make that kind of money reliably it is reasonable to question why he's telling you about it. Why not just keep the secret sauce to yourself so as not to overgraze the alpha? Clearly Gerber is seeking clients lacking in investing experience and knowledge but looking for a short cut to riches. Those who follow his strategy are very likely to underperform low cost broadly based indexes IMO, let alone get 15% - 20% annual returns.

Garland Whizzer
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by DB2 »

Let's see his year-to-year returns from the last 25 years.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by hoofaman »

Interesting story
...
*buys XLE*
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by LilyFleur »

BogleFan510 wrote: Mon Apr 12, 2021 2:53 pm
mikejuss wrote: Mon Apr 12, 2021 2:50 pm
BogleFan510 wrote: Mon Apr 12, 2021 2:48 pm Over shared so I removed it. Started buying stocks when I was 13 yrs old. Many winners and losers. Bogleheads wiki is the best retail investor advice.

He gives some good advice, like dont look at you portfolio frequently.
I didn't mean to put you on the spot. Anyway, I wish I had the gumption to invest as a teenager. I'm glad to hear you recommend a Boglehead approach to investing.
Dont listen to me. Im a random internet stranger, lol. I was lucky my dad opened a Charles Schwab account at their second retail location and we watched wall street week together and discussed it.
I started saving for retirement when I was in my late 20s and at a Fortune 500 with a matched 401k. My ex-husband said, hey, why don't you sign up for that, and I did. From my job, I earned in the lower to mid five figures per year (for ten years) and ended up as a stay-at-home parent.

I'm divorced and semi-retired and doing just fine.

But I don't watch TV news.

I joined Bogleheads after retiring and sold my company stock in the nick of time. Now I have an age-appropriate asset allocation, and life is good :mrgreen:
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by firebirdparts »

cos wrote: Mon Apr 12, 2021 4:46 pm
Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm -index funds don’t make sense because you don’t want to basically invest in every company. Compares it to dating (you wouldn’t want to date everyone in high school)
To each their own! :beer
I also thought that was a reeeeeeaaaaalllllly bad analogy.
A fool and your money are soon partners
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Random Musings »

The bigger you lie, the better it sounds.

Fools will part with their money. I expect them to be disappointed.

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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by unclescrooge »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm Discussion starts at 1 hr 29 mins

https://youtu.be/Nl6HVMsu9PQ

Cliffs:

-Someone earning 150k and getting 6-8% on index funds won’t be able to retire

- younger generation needs 15-20% returns, which he claims his management sets out to achieve

-index funds don’t make sense because you don’t want to basically invest in every company. Compares it to dating (you wouldn’t want to date everyone in high school)

- doesn’t want to invest in dying industries like oil and railroads

- guy is big into tech stocks (apple/Tesla), his strategy is to never sell high conviction stocks

Thought it was interesting just how arrogant some of these active fund managers are and completely oblivious to their inability to predict the future.
He keeps moving his eyes and head from left to right and never actually looks at the camera.

Either he's channeling Stevie Wonder, or he's on drugs. My money is on the later. Especially after hearing the rubbish that came out of his mouth.

His strategy seems to be to invest in the latest buzz words - fintech, gambling, cannabis, etc.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by chipperd »

I'm not interested in the kind of risk this guy takes and certainly not interested in handing over 1%/year to him. Remind me why this is interesting?
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by GregG3 »

'Owning an average stock in the world suck'

For sure it is still better than owning an active portfolio of bad stocks and consistently underperforming the broad index.

"if you are 28 y.o., you want to retire at 65 and you earn 6-8%/year, you make a 150k/year you will figure out you cannot retire'

By investing 10k/year over 37 years at 8%, one will accumulate around 2.2M at age 65. No bad even with 4% rule.
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by AllMostThere »

CABob wrote: Mon Apr 12, 2021 1:57 pm Funding retirement for whom? The advisor?
:twisted:
LOL, Classic summary! :beer
It is not about how much you make, it is about how much you keep and how well you invest it. - Author Unknown
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Always passive »

nisiprius wrote: Mon Apr 12, 2021 2:18 pm
Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm...doesn’t want to invest in dying industries like oil and railroads...
The Voya Corporate Leaders Trust never trades, and the portfolio has been frozen in time except for mergers and bankruptcies. As a result, it is, today, 42% invested in Union Pacific Corp, which suggests that Union Pacific Corp must have grown faster than most of the other stocks in the portfolio.

A quick check shows that Union Pacific Corp (blue) has done a pretty good job of beating the S&P 500 (orange) for as far back as Morningstar can chart it and has done really well recently.

"Dying industry" my foot.

With respect to Union Pacific and all those industries that are consider dying industries, this video from Ben Felix was an eye opener to me.

https://www.youtube.com/watch?v=UZnVt_CvL3k
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by delamer »

nisiprius wrote: Mon Apr 12, 2021 2:18 pm
Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm...doesn’t want to invest in dying industries like oil and railroads...
The Voya Corporate Leaders Trust never trades, and the portfolio has been frozen in time except for mergers and bankruptcies. As a result, it is, today, 42% invested in Union Pacific Corp, which suggests that Union Pacific Corp must have grown faster than most of the other stocks in the portfolio.

A quick check shows that Union Pacific Corp (blue) has done a pretty good job of beating the S&P 500 (orange) for as far back as Morningstar can chart it and has done really well recently.

"Dying industry" my foot.

Source

Image
Freight is measured in ton-miles, with one ton-mile being equal to moving one ton of freight a distance of one mile.

Railroads carry about 1/3 of all ton-miles in the US: https://www.bts.gov/content/us-ton-miles-freight

So the US economy collapses without railroads. A long way from dead, even if the stocks aren’t high flyers.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
Swivelguy
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Swivelguy »

Nathan Drake wrote: Mon Apr 12, 2021 1:37 pm -Someone earning 150k and getting 6-8% on index funds won’t be able to retire
So, like, savings rate doesn't play into his calculation here at all? Okay.
txhill
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by txhill »

I don’t know anything about the guy or whether he will achieve his intended returns, so I listened just to a short bit of the interview. He got 30% last year which is basically exactly what the S&P 500 returned, so uh congratulations to him I guess? In any event, if he is right that no one can retire only by investing in index funds, then that means our country is in a lot of trouble. So I hope (and imagine) that he is wrong.
Thomas93
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Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

Post by Thomas93 »

I was looking on-line for Ross Gerber's track record and couldn't find info. I did find this compilation of investment insight that makes me skeptical his stock picks will deliver enough alpha to overcome fees--

https://thestonkmarket.com/five-things- ... ss-gerber/
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