< i> Many of those go broke, too.
If folks just bought a basic index fund they'd get an average return of 8%. Not too bad.
The problem with the stock market is that financial advisors use averages over time to predict future performance.
They often deny doing it—but they are doing it.
I am hearing a lot of stories of professional financial advisors convincing the elderly (70+) to put most of their cash in the stock market.
This is a horrible idea—because the odds are very reasonable that the market could have a major (as in panic/capitulation) crash in the next five years—and the senior will not have time to make back their losses.
Seniors should be in the business of preserving capital as best they can—with an absolute minimum of risk.
For professional athletes they have major challenges—their “friends” and family often become their biggest problem. Financial advisors are not that trustworthy either—I think if I were in that situation I would split my wealth into several pots and have several different financial advisors helping me manage it.