Be Aware of Extremes
Have you listened to the ads on the radio recently? Ads from others offering financial advice using fear as their tactic have really caught my attention. Now I do not mind competition, in fact, the folks running these ads do not seem to be working in the areas we do. I also recognize the fact that each company has the right to advertise the way and approach they think is the best use of their advertising dollars, but the tactics they are using are really unreal to me. Throughout our 20 plus years of radio, I have heard advertisements of all types. It just seems to me that as of late, there are some who are playing on your economic fears, creating senses of future retirement doom and gloom. It always seems interesting that wrapped up in these fear campaigns are promises of a “guaranteed investment” or “a fool proof” approach or that “this precious metal will outperform any investment.” Not only will you never hear us say a comment like this, it’s just simply not true. If there were a magic button you could press and you’d get all the reward and take none of the risk, don’t you think we would all know about it by now? Advisors are using fear to drive you to them with promises for tactics that will keep you from having a repeat 2008 … but I tell you… investor beware!
What those who advertise this way are not telling you is about risk and about fees, and about big surrender charges if you should want to change or leave the investment. If you hear these type of ads and think you can get anything guaranteed, then you should have a red flag go up and start to ask questions. Will the company selling me this product be able to make good on its promises? What happens if I need to take my money out? How long is this tied money up? What is the surrender period? What if the market goes up more than the guaranteed percentage? How much will it cost annually, including all expenses? Many times people let the fear overcome them and they go for extremes and promises.
It is my hope and understanding that the folks we work with will develop a plan with us that establishes the amount of risk and reward they are willing to take. Their plan will be based on stated goals and needs. Each will be reviewed on regular intervals that will take into considerations changing events and economic factors.
So my suggestion for you is to stay focused on the course you set and the folks you work with. Eliminate the noise and fear antics and know that good solid planning with careful and timely reviews is a solid and sound investment approach.
Turn the extremists off, go accomplish your goals, and enjoy this year.