A close family friend disclosed that they got involved in the 2020 hype of retail investing (something they’d never done before) and lost 130k of their 200k savings. They are nearing retirement (~10yrs away). I recommended they reach out to a financial advisor to determine how best to utilize their remaining balance. Given their lower risk appetite the advisor recommended reinvesting in VOO and just letting the 70k sit and grow over time. Our friend has a 401k thankfully but still thinks a more active approach is best. I’ve also recommended that they invest in VOO and step away from trying to beat the market. What are your thoughts for this strategy? Is it wishful thinking to presume they could recover their losses over the next 5-10 yrs via an ETF?
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