Why Investors Use Financial Planners

Do you have a financial planner? Does one of your friends have a financial planner? Maybe you take your advice from your broker. As I have said countless times before a broker will make you broker. And a financial planner won't do any better. I know. You thought they would.

Let's look at the real reason investors choose to take advice from these so called "experts". Once they get you into their office or sitting with you at the dining room table or kitchen table you are doomed. Mr. F.P. has come prepared with beautiful slick color brochures and will have a presentation that will utterly confuse, bedazzle and befuddle. You will sit there and be afraid to ask a question because you know it is so dumb. You can't say 'no' or you will be admitting how dumb you are. And he knows that.

It is not that he is a liar. (I hope.) It is that all financial planners and brokers are taught the Wall Street method of "making money". Unfortunately it doesn't work.

The basic things that have been pounded into their heads are false. Let's look at the big three: Do Research, Dollar Cost Average and Buy and Hold. There are others, but these you will hear from every broker and financial planner because that is what the big brokerage companies and mutual fund families want. They want your money and they want to keep it even when the stocks or funds you own go down. In fact, buy some more.

Research is like blowing in the wind. You will be inundated with green sheets, blue sheets, red sheets, slick full color glossies, videos, etc., etc. Think about this. If you can obtain this information then so can everyone else. Everything that is known about a particular stock is reflected in the last price. Morningstar will sell you a beautiful package about a company, but it is worthless. What you really want to know is will it go up after I buy it?

Of course, if it goes down you will be encouraged to buy more to average out your price so that when it heads up again you will make a fortune. Yes, and pigs can fly.

If it does go down your advisor may say to hold on as the market always comes back. He doesn't tell you it may take 20 years or that the company might go out of business. Buy and Hold is the greatest myth of Wall Street. No one ever tells you to sell. Have you been told you don't have a loss until you take it? Please!

You got that advisor because you have not admitted to your self that you cannot pull the trigger. When you have a stock or fund that is falling you don't want to sell. You have to take charge of your money. Just you.

When you look back at the performance of most financial planners from 2000 to 2003 you know you can do a better job. Always ask to see what they did then. If they lost money you don't want them. Don't let them compare their performance to the S&P500. That's smoke and mirrors.

You can do better. Just do it.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

---

No Load Mutual Funds: Boost Your Portfolios Returns

Investors who exclusively use broadly diversified, no load mutual funds... Read More

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the... Read More

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Humpty Dumpty the Stock Market Falls Down

Humpty Dumpty had a great fall and all the King's... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

Investment Capital Gains

Have you bought any mutual funds this year or late... Read More

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

Discipline

One of the great "secrets" of successful people is discipline... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More

Size Counts!

What the heck am I talking about?It is often said... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Price Targets

Every day in any financial publication you will find the... Read More

Municipal Bonds

Because there are so many stocks that are NOT paying... Read More

Gold Fever

Right now there doesn't seem to be any "gold fever".... Read More

Option Trading Basics

Options trading can increase the profits you make when trading... Read More

Hot Stock Investing ... How to Pick Hot Stocks with Momentum Stock Trading

Profitable day traders recognize that momentum trading is among the... Read More

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Pension Plans

If you have a pension plan at work you will... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

Buying Stocks and the Importance of Correct Timing

An investor can find and research the best stock on... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

Look Out The Window

Quick, look out the window. It's raining. No, the sun's... Read More

Market Globalization

Just 30 years ago the stock market was a shadow... Read More

You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Prospering with Mutual Funds: How Anyone can ?Afford? an Investment Advisor

Recently I was invited to appear on a live CNNfn... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

The I Word is Coming to a Town Near You

Hello Inflation, it has been awhile, I see you on... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More