Launching a Facebook group seemed the logical way to release my total frustration with what has happened to the savings we worked hard to accumulate.
Please join my new Facebook Group: FARTS: Financial Advisers R Tongue Scum.
You remember the last time you puked? You remember the taste left in your mouth? You remember how you couldn’t get rid of that taste in your mouth?
I think financial advisers wake up with that taste everyday now that their advice has just been proven to be a bunch of snake oil.
Flip a coin, Ask the Magic 8 Ball, Consult Your Local Astrologist, Ask a Crackhead, all would have been just as viable and a helluva lot more fun.
If you read any magazine or newspaper or watch any television. You will have run across someone from John Stossel to Johnny Knoxville giving advice on how to invest for the future.
They were ALL wrong. ALL. EVERY. SINGLE. ONE.
And I was dumb enough to read, listen, and follow their advice.
Diversify. Think long term. Don’t panic. Stay the course. Save 15% a year. Don’t try to time the market.
Bullshit. We started really saving for retirement about 15 years ago. We are almost back to where we started.
I should have lived the high life, blown the money, run up as much credit as I could. It would have been easier and a lot more fun.
Stocks are still best for the long-term. The biggest mistake you can make right now is to stop investing for retirement.
All the claimed sophistication and risk management failed to stop them (big financial house advisors) from billions of dollars of exposure to the subprime market. Simply put, they bought and held notes from millions of borrowers who had absolutely no chance of ever paying it back.
25% into each of these four types of funds:
- Growth & Income
- Aggressive Growth
A shares (front end load); funds that are at least 5 years old or older; solid track record of acceptable returns within fund category.
*If risk tolerance is low, put less than 25% in aggressive growth or consider adding a “Balanced” fund to the four types of funds Dave suggests.
And the foreign currency these companies earn by selling overseas turns into more dollars when they bring the profits home. Investors I speak with are especially positive on technology companies in this regard, because tech companies tend to export a great deal of their goods.
We were getting close to a breakdown in the whole financial system, but now that decisive government actions are being taken, we’re stepping back from the brink.
All of that is a guess! A flat out guess.
Stay the course? Well hell yes, of course, now that all the paper profits are gone what choice do I have but to start over?
BTW: in case it’s not real clear. Don’t answer that last question.
FIX IT. (Skip ahead to 4:00)