The system of personal money management in this country has become corrupted beyond belief! Those that have trusted it and followed the advice of the vast majority of the financial services industry and the majority of the financial media have seen their finances, their futures, and often their lives, deeply damaged.
Every year millions of people are taken in by a scam. You’ve heard of some of the most common ones like the Nigerian letter schemes. I’m sure you’ve been exposed to several and hopefully have spotted them right away. Unfortunately they do work often enough to keep them coming and new ones are being invented all the time. The key is to be sure you know how to spot and avoid them no matter the packaging.
The problem with the Morningstar rating system is that strong short term fund performance is meaningless since the majority of the 4-5 star funds drop to 3 stars or less within a few short years. When the ratings drop, investors are advised to invest their money in the next set of 4-5 star funds. The result is both investment underperformance and additional losses from paying the substantial commissions required by the fund switch. This cycle is extremely damaging and yet is the norm.
Financial expert, Ted Hunter provides investment advice that when investing in the stock market, no-load index funds are commission free, have very low trading and other costs, and will by far provide the very best return on your investment. Use them to manage your money.
So where did everyone's retirement money go? It went to pay for the multi-billion dollar financial services industry. It was lost due to gross investment incompetence by an industry that doesn’t know how to invest successfully, but does know how to successfully sell the idea that they do. Americans have been subjected to one of the most effective and most destructive marketing campaigns in history.
Avoid investment scams and know your investment options to create financial freedom. Manage your money by investing in simple investments like no-load, broad-based index funds. No financial expert required.
