Radio Interview Reveals Fear and Ignorance

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I just heard a story on the radio where a reporter interviewed a number of random folks “on the street” to get their thoughts about what’s been happening in the economy these past few weeks and months.

What was most interesting was the wide variety of responses which ranged from “I’m glad I don’t have any investments now because I’d probably have lost it all” to “I don’t know what’s going on but I hope things get better soon” to “I wish I had my money in a sock under my mattress.”

Are these typical reaction that most people have to the economic turmoil the world is experiencing now? I don’t know, but I suspect they’re not far off.

It seems that most people either don’t know what’s going on and simply hope for the best, or they rely on their financial adviser to make the decisions for them.

I contend that neither of these options are good strategies.

Because when it comes right down to it, if you are not proactively taking charge of your own investments, educating yourself on what’s going on and what to do to protect your assets, nobody else, and I mean NOBODY else, has your best interests at heart.

If you’re one of those who is hoping and praying that things get better soon, I hate to be the bearer of bad news, but I believe you’re in for a shock. And if you’re relying on someone else to make your investment decisions for you, you’re also likely to be very disappointed.

I know because I used to be one of those who didn’t really understand what was going on and how global conditions affected me directly. I used to rely on a financial adviser, someone from a large well-respected company. And I have no doubt he was a nice guy, but he also oversaw a 6% decline in my portfolio over a three year period.

A year ago I made some drastic changes. I took control of my entire portfolio, I educated myself on what was going on in the economy, I found a financial genius who has had exceptional returns on his investments and who writes a newsletter outlining his own investment strategies.

The net result for me has been a dramatic improvement in my portfolio’s performance. This of course leads to peace of mind at a time when it seems as though most people are scared or in denial.

How about you? Are you in control of your finances? Are you making the best decisions? Where are you getting your financial education?