David Swensen
Chief Investment Officer, Yale University
David Swensen is the Chief Investment Officer at Yale University and an author regarded for his innovative approach to institutional investment strategy.
Global Business / Economy
Is Your Financial Planner Actually Beating the Market — or Just Charging You to Underperform an Index Fund?A financial planner does not need to beat the market to justify a fee—but if you're paying primarily for investment management, you should demand evidence that the service adds value after fees, taxes, and risk. Low-cost index funds make it difficult for active managers to consistently outperform broad benchmarks, but a good planner can provide value in areas an index fund cannot: tax planning, asset allocation, retirement strategy, estate considerations, and—perhaps most importantly—preventing costly behavioral mistakes. The real question isn't simply "Did my planner beat the S&P 500?" It's "What am I paying for, and is that value greater than the total cost?"