Monday, August 8, 2011

Financial FICTION #3: If you hear financial advice through the mass media, it is obviously correct and right for you.

Financial FICTION #3: If you hear financial advice through the mass media, it is obviously correct and right for you.
For some strange reason, most people believe that the best source of financial advice is what is disseminated through the mass media. Really? If it’s on radio, TV, a website, or printed in a magazine/newspaper, it must be appropriate for you? That’s a myth, and here’s why:

Generally, such advice is so generic that it may actually be toxic in your particular situation. No credible professional should make generic statements in terms of financial products (i.e., “this is good and that is bad”) because the same product is not necessarily equal for all investors, depending on how and for which purpose it is applied. Although they are products you purchase, it’s important to understand that financial products are not like other products in this regard.

In most cases, such generic advice is really a cloaked advertisement for a particular company’s product that serves as a sponsor of the media – and while this may not necessarily be a bad thing, as an investor you should know if that is the case, wouldn’t you agree?

I’m particularly skeptical of media advice that recommends specific investments for purchase – you know the ones. They usually offer you “hot picks” of the week or month. Have you ever noticed that the predictions/picks change with each new edition of the show or publication? So does that mean the previous suggestions are no longer “hot”? The ironic thing here is that these same folks tell investors to “buy and hold their investments for the long term,” yet they keep changing their “hot stuff” alerts every week. I hope you can read between the lines here.

One significant thing to note, financially successful individuals do not take their advice from the mass media. Is all such advice terrible? Of course, not. But smart investors know they would be unwise to embrace financial advice that is meant for 300 million Americans who think it’s enough. Just as in medicine, I’d recommend you work with a financial professional who understands your financial vital signs and design specific solutions for your situation.

Contact Laser Financial Group today and schedule a complimentary consultation with a skilled financial professional who will tailor a plan to your specific needs. 301.949.4449 or

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