This is very true. But for people who know nothing about investing and just want to get started, the simplest non-harmful advice I always give is "Vanguard Target Date Fund". That way, at least they are not doing anything wrong that will serious hurt their returns. Later on, when they have more experience or more money, they might want to switch to some other allocation.
Totally. I give similar advice (although we don't have anything quite as good as the Vanguard TD funds up here in Canada yet). Was just thinking for this particular audience it wouldn't hurt to suggest a bit more effort. Still, nothing wrong with a low-cost TD fund to get started, especially with a portfolio in the 4 or 5 figures.
