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5 days ago
All The Investment Talk Is Really Tiring
I am tired. I woke up at my usual time around 5AM this morning and have felt very tired ever since. As I sat at my desk drinking my coffee, I recognized that while I am physically tired I am also mentally tired of seeing all the wasted time and effort going into investment research. In my Twitter stream, on the television, in the newspaper and in virtually every other form of media I get bombarded with the next big investment or the latest technique for becoming wealthy quickly and with little effort. I see financial advisors and investment advisors discussing technical analysis and fundamental analysis, insurance salespeople discussing ways to guarantee not losing money, and infomercials hawking the next great trading system. It's all such a waste of time, effort and money. My focus is on having a profound, positive impact in people's lives...squeaking out a bit more yield on an investment or savings account, does not do this.
One would think we would have learned by now that this pursuit of overnight wealth has done nothing but lead to bubbles and collapses, has pushed people over the brink of financial ruin, and has only benefited the people selling the systems. Over the past decade we have seen too many bubbles all in this pursuit of wealth. The dot.com bubble, the housing bubble, and now likely the gold bubble? None of this has pushed us forward individually or collectively. Collectively we live in fear of the next major financial collapse, yet we are still looking for a new way to easy wealth. I am tired of it.
Wall Street plays this game, and pushes the "get rich" desire at every turn. A great many financial advisors are accomplices in this, also. These advisors look for ways to increase return on investments, spend time researching the next big thing, and help clients buy more stuff; all without focusing on what is truly important to those clients. Advisors need a major paradigm shift to recognize that we are in the business of helping people live their lives more fully and freely. Worrying about investment return does not accomplish this. I am tired of it
If we could redirect even just a small portion of the vast resources spent on getting rich into financial literacy education, the impact could be tremendous. Helping people understand the fundamentals of budgeting, taxation and investing would impact their financial well-being far more than any brilliant investment idea from Wall Street, a financial advisor, or a slick infomercial played late at night. We are a people who are physically unhealthy and we are a people who are financially unhealthy. We do not accept financial responsibility, we do not understand basic financial truisms, and we have immeasurable dollars being spent perpetuating this lack of education. I am tired of it.
Forget the get-rick quick schemes. Large financial institutions are selling you snake-oil. No matter how much research and insight and technical words used, they are selling you a falsehood. Their schemes will make them wealthier and a few clients will strike it rich, but the vast majority will receive no benefit and likely have their financial well-being hurt. Focus on what you can control (e.g. your spending, focusing on what you truly value, not taking needless investment risk, etc...) and you will be on a much better road to financial well-being than any investment scheme can offer you.
I am really, really tired. I am tired and not editing this post. I am tired.
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