By Tony Treece
Interestingly, when you begin explaining to people that the way they were taught or what they came to believe was the best system of retirement planning is wrong, sometimes they get defensive. While wiser investors are eager to protect their money, the prideful ones often get puffy and irritated as though they are a blowfish (or “pufferfish”) getting ready to intimidate its prey.
The advice that Wall Street advisors recommend causes some of their clients to puff up like blowfish. And what are blowfish? One of the most poisonous fish in the world. This is ironic, because the advice your stock broker is giving you is probably some of the most poisonous and harmful advice in the world.
Do you know why? If you called him last week when the market dropped 1,000 points, he probably told you to double down and rebalance your portfolio. Do you know what he did for you when he said that? He punched a few keys in his computer software. It told him what you should sell or trade, so he was able to justify the fee he is charging you to manage your money. When the market is going up and down 500 points in a day, the software continually calls for it to be rebalanced.
Years ago, I was taught this garbage. I was told to pump the proprietary products my brokerage made the most commissions on. Why do you think companies big brokerage companies are constantly being sued for millions of dollars? If that was not enough, we detailed in Friday’s newsletter a few of the ways the stock market is manipulated. I could not tolerate the mess I was taught to do when I worked for a brokerage. I was not willing to sacrifice my clients’ money for my company’s gain.
In other cases, if people do remain defensive, they remain loyal to a broker who has abused them for years. I see it on a monthly basis. We will spend five to eight hours with a client educating them, only to have them to take the knowledge we have equipped them with back to an abusive broker who has taken advantage of them for years. It’s like a battered wife remaining in the same house after her husband has beaten her. It’s mind-boggling. It’s a strong psychological delusion.
I want to clarify why we speak strongly about the Wall Street system of retirement and explain our perspective. We have completely pure motives when we tell you that the Wall Street system of retirement is set up to make each of us losers. I will not give out general advice, but I am happy to speak with anyone individually over the phone or in person. To give out general advice is to be guilty of malpractice. We take what we do very seriously, because we believe most people who have saved or have money to invest take their money seriously.