Bad Investing Advice

Most Investing Advice is Bad Advice

When it comes to investing, we are bombarded with bad advice.

That's because almost all the advice we hear - directly or indirectly - comes from the same polluted source: The Managed Money Industry.

Ouch.

I know - it's horrible being a cynic.

But it can also set you free.

The Managed Money Industry Model

Whether it's some big name financial guru with their own television or radio show sucking up millions of dollars of advertising each year or your local financial advisor or rep from a financial institution who gets compensated via commissions for parroting or pushing certain "financial products" - here's the common denominator and bottom line:

The more assets financial institutions manages, the more those institutions rake in.

Let us actively manage your money via mutual funds even though the majority of all mutual funds fail to match the overall market
Let us passively manage your money via index funds and ETFs because if professional money managers can't beat the market, who are you to think that YOU can do it?
You MUST diversify - and, of course, that's cost prohibitive to do on your own, so you really don't have a choice - you need our investment vehicles (mutual funds, index funds, and ETFs).
Max out your retirement accounts - that way you can't touch your money for decades while we siphon off a portion of your assets each year.

Whether the managed money industry actually helps you build wealth, provide for your family, or secure a secure retirement is secondary to the needs of the industry.

That's why the industry goes to such lengths trying to convince you that their management of your funds is the best you can hope for.

Investing Tough Love Time

If you want the same life as everyone else, then keep following the same advice as everyone else.

And keep making the same decisions as everyone else.

And then, if you're like most people, you'll end up delivering pizzas when you're old, living a seriously scaled-back retirement, and/or hoping like hell that your kids will let you move in instead of sending you to a home.

I believe that anyone, as long as they make it a priority, can learn to become a great self-directed investor.

But there's no single path that's going to be right for everyone.

Myself, I've found my own preferred method that allows me to stack the investing deck in my favor by using options to give me extreme low cost basis acquisitions of world class businesses.

Whether the solution that's worked for me is right for you, only you can answer that

But I would urge you, if you haven't already discovered the investing approach and style that best suits you, to make your own self-directed investing development a priority.

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