Half say, "why bother", and Half say, "It's crazy not to make the effort".
Few study those who "bother with it" because if you are from academia, it's far easier to study things in large numbers. If you studdy in large numbers and groups, it leads to generalities and conclusions that are acurate only on average. It is the truth for a population, but not necessarily individuals. Statistics are funny in that way. It is really the study of what usually happens, not unusually happens. So usually, people do no prepare, do not research, have no plan or process, and therefore have poor results. This does not take a PhD to conclude, just look around you at life happening. White papers have said in the history of the stock market, only 4% of the stocks out perform the market. Logically(?) they conclude why try to find and own the 4%? Just own the market. I scratch my head at this and wonder if most of the stocks fail to beat the market, why own the market? Those same papers are talking about the total number of stocks that have existed, (~27,000), so 4% is almost 1,100 stocks. But what is the difference between success and failure?
Let's look at this in another using something other than stocks. Let's consider your health. If I were a doctor and I told you "why bother with eating correctly, exercising, getting enough sleep and getting yearly physicals" because that is what studies say is going to happen anyhow (obesity is growing at a rapid rate, diabetes is increasing at a near epidemic level, people overeat, under exercise, and most do not see a doctor unless something is wrong) I would likely have my license taken away! So why does it make sense to give that advice to those investing without qualifying it?
If you do not want to work with an advisor, do not want to do research, do not have a process for buying and selling and generally taking care of a portfolio--Buy an index fund or two and call it a day. That is how it should be said. AND, if you work with an advisor who states all you should buy is the index funds, you have found an asset gatherer, not an advisor, because you do not need them to buy index funds and frankly, the financial plan is not worth the cost of an asset based fee. Just pay for a financial plan by itself. There. I said it.
