Yes, 90% of Financial Advice is USELESS!! But it is hard for us to digest. We always in search of the BEST and the RESEARCH oriented advice for us by forgetting the basics of investing and money-making rules.
The whole financial industry is running behind you to complicate your financial life at first. Once they complicate it, then they force you to pay for it to simplify!! The more complication inside the mind of investors the more money for advisory business.
90% of Financial Advice is USELESS!!
You can easily build wealth by following the few simple rules of investing like spend less, invest more or avoid bad debt. University of Chicago professor Harold Pollack showed the best financial tips can all fit nicely on an index card. Let me share his Index Card image.
Pollack said that the best personal finance advice “can fit on a 3-by-5 index card, and is available for free in the library — so if you’re paying someone for advice, almost by definition, you’re probably getting the wrong advice, because the correct advice is so straightforward.”
SPEND LESS, INVEST MORE, AVOID DEBT, USE SIMPLE PRODUCTS, AVOID THE ADVICE FROM THOSE WHO HAVE CONFLICT OF INTEREST and NEVER INTERRUPT THE COMPOUNDING are the few of the greatest financial simple advices which works forever.
Hiring someone who has a fiduciary standard like fee-only financial planners is always the best idea for your wealth management. Refer to our “fee-only financial planning service” details for reference.
However, we forget such simple rules and in constant search of the BEST ADVICE, BEST INVESTMENTS or BEST TIPS to generate higher returns. Remember one thing that creating wealth is the lazy and boring process. Don’t expect the results within few months or few years. You have to be in meditative mode to create the wealth.
Take, for example, none were aware that one day Corona kind of virus destroy the economy in such a big way. At the same time, none were aware that the market will bounce back so early. Hence, these short term up and downs are part and parcel of your journey. No one knows how the market behaves in short term.
A retirement guide from JP Morgan shows that subtracting just the 10 best trading days would cut the S&P 500’s returns by more than half. It means the majority of trading days are irrelevant for us. Hence, better to ignore the NEWS and NOISE.
It also made me remember the quote of Nassim Taleb in Fooled by Randomness “you may have a 93% chance of seeing positive gains if you check your portfolio just once a year.”
Conclusion: -Stick to the BASICS of UNIVERSAL RULES OF INVESTMENT. Avoid NEWS and NOISE. Make it a habit to ask the RIGHT QUESTION. Asking the RIGHT QUESTION may solve the majority of your financial issues. Happy investing!!
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