Investing is a subject that is has gone from a discipline to a form of entertainment with the rise of the 24/7 business channels like FOX Business and CNBC. Has this and the explosion of web sites, magazines and books improved the world of investing? The answer is a resounding, NO! This is why the use of an Investor Coach is critical.
Here is a quote from my (John Pollock) book, The Nest Egg Cookbook, Your Recipe for a Comfortable Retirement;
“We consume fattening, but great tasting food and the financial equivalent is the media hype on investing? We read “Get rich quick” (greed) articles and the “doom and gloom” (fear) rhetoric? The media hype on investing topics is typically geared to activate our instinctual urges such as pleasure and survival and our emotions such as panic, urgency, excitement, and fear. Jane Bryant Quinn, a well-known financial advisor, refers to it as “investment pornography.” I call it investment junk food. Just because something is in your mouth and you are chewing and swallowing, does not mean it is good for you. It does not mean it is actually food, either. (What exactly is a cheese puff?) If we’re not conscious enough to activate our cognitive mind, our instincts and emotions sure can get us into trouble (like eating a whole bag of cheese puffs in a single sitting), and lead us away from prudent investing (and eating). These messages destroy our peace of mind and result in unnecessary distress. The media is public enemy #1 to peace of mind. Remember what their business is, entertainment, to sell advertising and in some cases books.”
When making decisions about investing you need a financial advisor that is also an Investor Coach, this will help you avoid financial advisors whose “traps” are designed to separate you from your money NOT to help you with your investing knowledge.