Don’t be Wall Street’s Patsy!! July 7, 2008Posted by shaferfinancial in Uncategorized.
Tags: 401K losses, 4th July, mutual funds, parade, Retirement, Warren Buffett
Well, it was a wonderful 4th of July. Small town parade, fireworks, hamburgers and hot dogs, etc. I am very thankful to live in a country that allows for so much economic freedom. Spending the 4th in the “Live Free or Die” state is also a treat.
My son got to decorate his bike and ride in the parade.
And he won a little money for his decorating!
Here were a few quotes from the Sunday Boston Globe (front page article no less) from people talking about their 401K’s. “I open it when I get the statement and weep….I keep putting money in and I’m not getting anywhere,” from a lawyer. An accountant said she “gets sweaty palms….the closer you are to retirement, the more anxiety its [losing money] going to provoke.” And finally the best from a realtor, “right now I’m just treading water. I try to think long term. I’ve probably got another 8-10 years until retirement, so hopefully I’ll catch an upswing and get out alive.”
And these folks are suppose to be the sophisticated ones????? Praying for a market upturn (at the start of a recession) is a plan?
And of course you have to get the quote from a financial planner in any article on retirement funds. Here it is, “as a general rule, I think people should decide on their risk tolerance, develop their allocations based on that, and then only look at it once a year.” Obviously a well educated planner, educated in the Wall Street way, who wants you to only look at your investments once a year, be passive, and ignorant, trust the market to get you there. Then this planner concedes “almost nobody follows that advice.” So you give advice nobody listens too and you don’t think there is something wrong with this picture?
Well folks you heard it hear many times but it bears repeating. Become knowledgeable about investing, don’t trust the financial planning industry to do what’s right for you, know that the market will not get you there, become an active, engaged investor.
As Warren Buffet says, if you are in a poker game and you don’t know who the patsy is within a short time, then it is you! Quit being a patsy to Wall Street!