Step 5: Manager Pickers in Under a Minute

Mark Hebner explains that active investors unnecessarily increase their risk, expenses, taxes, and anxiety. Numerous studies have shown actively managed investments generally carry more risk and lower returns than globally diversified, risk-appropriate index portfolios. Despite this fact, investors frequently fall prey to the allure of past winners, hiring the hottest new fund managers only to fire them later because their past performance doesn't persist in subsequent periods. Sometimes active managers can repeat their success several years in a row, but that success has rarely lasted. In short, yesterday's returns are not for sale.

All videos are being provided for informational purposes only and should not be considered a solicitation, recommendation, or endorsement of any particular security, product or service, or considered to be investment or tax advice. There is no guarantee any investment strategies will be successful. Investing involves risks, including possible loss of principal. Past performance does not guarantee future returns. No investment decisions should be made solely based on the information in any of these videos. The opinions referenced within are as of the date of each video recording and are subject to change without notice. Information provided by third party sources is not endorsed or guaranteed by IFA. Where hypothetical back-tested performance is presented, please be sure to use the pause button at the end of the video to fully read the important disclosures including disclosures related to the use of this data. When charts and tables are used in this video, many may be viewed at a Video Resource section above.