Finding Advisers You Can Trust

I doubt this discovery will surprise people who work at financial magazines. I've had plenty of conversations with financial journalists who acknowledge that they invest their own money in low-cost index mutual funds, as do I. My experiences mirror that of an anonymous journalist, who wrote a first-person story in Fortune magazine a few years ago that carried the headline, "Confessions of a Former Mutual Funds Reporter."

In the article, she writes, "Mutual fund reporters lead a secret investing life. By day we write 'Six Funds to Buy NOW!' We seem delighted in dangerous sectors like technology. We appear fascinated with one-week returns. By night, however, we invest in sensible index funds."

Of course, if magazines simply told readers to stop chasing hot funds and invest instead in those sensible index funds, where would the advertising dollars come from?