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

What is the longest distance between two points? In my experience, it's typically a shortcut.

Our society has created a culture that allows instant access to any and all the information we desire. We are self-diagnosing our own medical conditions without going to the doctor, buying life insurance on-line without an agent's advice, preparing our own trust, building our own websites and the list goes on an on. The old cliche, "you get what you pay for" has apparently escaped the minds of today's consumers. Why would you gamble with your health? Utilizing a life insurance agent can be a life saver. A trust or will you create on-line is worthless unless backed by legal representation (in most states). And lastly, your self-made GoDaddy website looks less than appealing. It's no wonder that graphic designers and website development companies charge $150+ per hour; they are worth it!

One of the most horrendous marketing practices currently taking place is the idea that you can "Be Your Own Broker." Unless your financial acumen is off the charts, you will loose this game. You simply cannot beat the markets over the course of your lifetime because the markets will easily stay irrational longer than you can stay solvent. In order to have a better result than the majority of the American public, you must change your thinking and understand that there are financial myths working against you.

The “Be Your Own Broker” mindset is touted by several on-line trading brokerage firms that state you can plan and execute your own investment plan by utilizing their on-line help, free educational videos and real time market updates that will allow you to stay on track. These firms are poisoning the American dream by appealing to a simple human emotion, greed. In order to save money in brokerage firm fees and high commissions by executing your own trades is it really worth it if you end up with consistent losses? Of course, the answer is no! The reality is the majority of us buy when we should sell, and sell when we should buy. After you take a huge loss and call the brokerage firm, you may then be informed that you could have placed a stop/loss on the order to help minimize any substantial losses. This can be a high price to pay for an education on risk management all because of a “Do It Yourself” mentality.

Other myths that consistently move more people towards a financial cliff are:

• "My 401(k) has employer matching"
• "Deferring taxes until retirement is a good idea"
• "I hear I can earn 12% in mutual funds"
• "I should buy term life insurance and invest the difference"
• "I must be willing to accept high amounts of risk in order to obtain high returns"
• "When I retire I will be in a lower tax bracket"

Why do most people believe these statements? It is familiar and common within the media, so consumers believe this information to be true without judgment. The truth is that today's economic environment is filled with noise, and most of it is irrelevant to helping anyone achieve their retirement goals.

This cultural phenomenon of the "Do It Yourself" mindset has got to stop. People are slowly becoming a jack-of-all-trades and a master-of-none.

Are you in a profession or currently offering a service that has to compete with a "Do It Yourself" alternative? If so, please share your insights on the effect that your customers may not be aware. Are they doing themselves a disservice? If so, how and what are the ramifications of trying to take a shortcut?