The complexity of the options induced the spouse of a friend to hire a financial consultant. He lost 50% of his principal during one of the crashes, and hadn’t recovered by the time he was downsized out of the firm.
No one cares as much about your financial well-being than you do.
My friend retired about two months ago and moved his 401K to Merrill Lynch and is now wondering why he is missing about 10% of his money, he thinks it was eaten in hidden fees. They promised that the fees would amount to no more than 3% spread over 5 years.
I believe that most are not capable of understanding all the details in such a move and just trust that a big name company won't steer them wrong. It's sad but they will indeed do that and when you are dealing with a salesperson by phone, they have deniability. Commissions, commissions, commissions.
I have been handling my own money and stocks and bonds since I retired 12 years ago and I'm here to tell you, it takes an educated person to do it, I had to educate myself and that education was sometimes expensive, sometimes not.
My friend mentioned above, asked my help and advice and I had to turn him down on both. I have enough on my plate already, plus, I don't want to be responsible in any way, shape or form, for somebody elses money.
I have two sisters who are helping my 91 year old mother manage her money and I'm thankful for that. They are doing a fine job.