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Understandable, but they also have conflicting interests, which is that THEY want to make money

if you look at the average return rates of managed investing vs unmanaged, you’ll see that you earn more by yourself with pretty much equal risks

I suspect many investment companies have deals or interest in making you invest in specific companies even though they’re not that profitable

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Lv_InSaNe_vL@lemmy.world ⁨2⁩ ⁨days⁩ ago

THEY want to make money

Yes, but they make money when I make money. I pay like $750 per year to keep my account open, but other than that he only takes a percentage of my monthly gains. The more money he makes me, the more money he gets from me.

And yes of course I could do enough research to match or very them in gains and I could spend enough time watching the markets to make sure I am making sound decisions. Or I could just pay someone a few hundred bucks a month to do it for me. I know what decision I chose.

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- ipitco@lemmybefree.net ⁨2⁩ ⁨days⁩ ago
  
  $750 per year to keep my account open
  
  WHAAAAAAT
  
  The thing is it’s relatively simple in the most part. Just invest in a couple mainstream ETFs and boom, no need to be fancy or taking some time after that
  
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  - Lv_InSaNe_vL@lemmy.world ⁨2⁩ ⁨days⁩ ago
    I think you missed three facts that I keep trying to hammer home.
    
    I genuinely don’t care enough to do research and spend time watching the markets. I’m fortunate to have more money than time these days so $750 is worth vastly less than me doing it myself.
    
    It’s safer. This is a huge % of my life savings were talking about. I don’t trust myself to do it.
    
    I don’t care. At all. In any capacity.
    
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    ipitco@lemmybefree.net ⁨2⁩ ⁨days⁩ ago
    
    It’s safer. This is a huge % of my life savings were talking about. I don’t trust myself to do it.
    
    I can understand it, and respect your decision. At that point when we’re talking about such amounts, it’s better to offload this mental stress to a reputable company, even if it means a bit lower interest rates
    
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deranger@sh.itjust.works ⁨2⁩ ⁨days⁩ ago
That doesn’t make any sense, they have a shared interest. They make more money when you make more money.

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- ipitco@lemmybefree.net ⁨2⁩ ⁨days⁩ ago
  They could also make you invest in their partner companies (or even their own) and have themselves invested prior to that in the same company, then sell later, making them a bigger cut, or similar schemes. What I mean is that it’s not that simple.
  
  overall their work is not that hard and statistically doesn’t pay off, at least in the past years
  
  They’re trying to stay relevant, but ETFs are now the main way of investing and are providing more interest than picking niche fields. They’re doing what they can to stay relevant, but it doesn’t really work
  
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  - deranger@sh.itjust.works ⁨2⁩ ⁨days⁩ ago
    Yeah, I do the ETF thing too.
    
    I get the possibility of some kind of insider trading, but they still have to make good returns or they’re gonna lose the job.
    
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    ipitco@lemmybefree.net ⁨2⁩ ⁨days⁩ ago
    It’s all about balance ⚖️
    
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