Carlton Financial Group - Insurance, IRAs, College Planning and more

The financial landscape has dramatically changed over the last few years leaving the American public more confused and apprehensive than ever before. We are not even dealing with analysis paralysis as it has become more terrifying then ever to consider various investment options that would ultimately help people reach their financial goals, so people no longer act. With the mainstream financial media claiming that the recession is over and advising consumers not to worry is a slap in the face to the very people they are hoping will invest money with them. The markets are making unexplainable improvements however, when we continue to lose more and more jobs only pure ignorance would argue the economy is improving.

The mainstream financial influences, including newspapers, magazines, reputable internet sources, and even your next-door neighbor, recite these all-too-convenient financial misconceptions of 401(k)s, IRAs, and mutual funds.  These advisories have led you to follow a never-ending mirage of financial insecurity while counting on the retirement oasis to suddenly appear as a reward for having stuck to the popular investing methodology. The baby boomers have seen their 401(k)s become 201(k)s and many of them do not have the time to recoup their losses and achieve their financial goals.

Now, I agree with the financial institutions wishing for increased currency circulation along with proper planning planning, however; why give it back to the institutions that put you in the middle of this crisis? Did you receive a call from the brokerage firms where your money was invested before the market crashed? Did you receive a plan of action from the broker that was receiving commission payments and assets under management fees on your money?

Your friendly broker more than likely suggested some of the following:
“Don’t worry, the market will recover.”
“Now is the time to invest to obtain the greatest returns.”
“More millionaires were created out of the great depression than any other time in history.”
“Invest more today, and your dollar cost average will improve.”

Garrett Gunderson, author of "Killing Sacred Cows" comments on these financial myths saying, "Compound interest. Dollar cost averaging. Show me one person that is truly wealthy because they have that or because they followed that. Typically they did something and that is where they stored it." Meaning, the IRA or 401(k) is only a container to store what they have accumulated and no one is truly wealthy just because they followed the conventional advice.

Most people took a hard lesson as brokers' actions are exactly what their title implies; they leave you "broker" for having known them. They advised you to enter into plans with high management cost, countless limitations and no exit strategy. You were advised to enter into these plans because they were familiar and it was the plan everyone was told to follow. Most likely you were only given one option/strategy and never shown the other plans available to you.

The good news is that you get one free pass to say, “I didn’t know; it is not my fault. I was not aware of any other financial concepts to help me obtain my goals!”  Why do you get this pass? Because everyone was getting bullied by these financial firms to invest hard-earned dollars into plans that were not suitable to help you accomplish your financial goals. This moment marks the end of financial ignorance and the beginning of your new financial future: one that you control.

Continue reading...

1. Mark Castleman on January 5, 2010 @ 11:58 AM