| Are you getting bad investment advice? If you, | | | | people I've met that have made money in the |
| like most people, have been approaching investing | | | | markets have been those who were actively |
| the traditional way, you probably are. In fact, if | | | | managing their investments. And most of them |
| you have been losing a lot in the stock market or | | | | have been money managers who treated |
| if your nest egg isn't growing very fast or at all, | | | | investing like any other business. |
| you may have been on the receiving end of very | | | | So what are you going to do about it? |
| conventional -- and pretty darn bad -- advice. | | | | If you continue the buy and hold approach, your |
| Read on to find out why -- and what you can do | | | | money may grow a little, but you'll lose much of |
| about it. | | | | that growth to inflation, and quite possibly another |
| You see, the traditional party line is all about | | | | portion of it to plan administration fees. |
| playing it safe. Now I'm not at all opposed to | | | | What are your alternatives? |
| keeping your money safe. But the problem with | | | | You could educate yourself about how to invest |
| the traditional approach is that the safety of your | | | | successfully -- and if you have the time and |
| money is actually an illusion. You're giving up | | | | money to do so, that's an excellent approach. |
| potential profits for the sake of keeping your | | | | However, most people have neither the time nor |
| money safe -- yet the money isn't as safe as | | | | the money -- nor the inclination -- to learn enough |
| your advisors would have you believe. | | | | about investing to actually make a success out of |
| Most people are taught to invest for the long | | | | it. In that case you might want to consider |
| term, usually investing with stocks, bonds or real | | | | working with an experienced financial advisor |
| estate using a "buy and hold" scheme. | | | | instead. |
| Unfortunately, this advice has rarely worked in | | | | When you do that, be sure to ask them about |
| the past and is even less likely to work in the | | | | their investment philosophy and their performance |
| future. | | | | records. If they're recommending more of the |
| The real truth looks a bit different. Here's why... | | | | same, you might as well stay where you are. But |
| The concept of passively investing is that you can | | | | if they have experience with alternative |
| create wealth without work, resulting in | | | | investment products that have traditionally |
| "investors" never doing their homework. Of | | | | outperformed the stock market, at least over |
| course, there are consequences for that -- | | | | time, you should take a good hard look at what |
| they're receiving commensurate performance | | | | they might be able to do for you. |
| results. | | | | After all, the whole idea about investing is to have |
| At best passive investing may help preserve your | | | | your money go to work for you. Don't let it just |
| wealth more efficiently than putting it in a bank | | | | sit there. Especially not when your buy and hold |
| account, but in 30+ years of experience, the only | | | | strategy is costing you big-time. |