I have been inundated by “news stories” giving me financial advice. Much of it concerns retirement. Much of it is a bunch of baloney. And I am tired of it.
Folks, there is obviously not much honor among thie…. er. I mean writers. Many of us will write anything to make a buck.
And this is wrong. People look to the internet for advice. They want to believe what they read. And they shouldn’t. Everyone should consider the source.
I’ve read many an article telling people that they should invest in their IRA and not worry about paying off the house or credit cards. Baloney, folks! You should pay off all debt before retiring. That should be your focus. Want proof? Do the math! How much are you paying in interest? How much is your investment making? If the interest you are paying out exceeds what you would make, that is your cost.
More simply put if you have a house with an old style loan and your interest rate if five or even six percent…which if you bought your house ten years ago is more than possible, you would have to put money into an IRA that made more than that, in order to profit. With credit cards the ratio is worse. Pure and simple! If your IRA is making that, do it! But more probably, you are making somewhere in the neighborhood of 2 percent. Maybe a little more, if you are lucky.
It doesn’t matter, unless you are making as much as you are paying out, you are losing. You will hear stories about people who made millions by taking on debt to invest. You will read how you should emulate that. But ask yourself, who does that profit?
And this is only one example of financial advice out there that is misleading. Again, I have to say, consider the source. MAYBE, these folks have something to gain if they sway you.
Financial articles are just one area where this is true. You should consider most everything you read as some form of advertising. And then ask yourself as a writer, where are the ethics?
