Mark Cuban is an outspoken entrepreneur. Unlike most men of his wealth he has an uncanny ability to get his point across and best of all most his statements are not always politically correct. I recently was forwarded the article which is linked below. He hits home on three fronts that I always do my best to confront when talking to others about their money.
#1 Cuban says: No longer does Wall Street want you to consider buying what you know. Today, your investment advisors want you invest in things you have absolutely no fricking clue about and have pretty much absolutely no fricking ability to learn about.
-The reason I stress this is: How can you judge how good or bad something is and matches up with your needs without even knowing how it works?
#2 Cuban says: Remember this. It’s better to make less, or next to nothing than to lose everything. Don’t get greedy. Don't get desperate. The stock market can’t save your financial future, but it can end it.
-The reason I stress this is: Never put any money more at risk than you are willing to lose. Most people are risking their entire financial future playing the slot machine (See #1), when the casino (ie Wall Street) is the one controlling the odds.
#3 Cuban says: Ask them (Your advisor) if they are making the exact same investment with their money.
-While an advisor wouldn't necessarily have the same holdings as they are suggesting, it is a good insight into how/where they are saving their money (if they're saving any money at all for that matter). If you are taking off your financial clothes for an advisor they should be willing to do the same for you.
To read more click below:
http://www.businessinsider.com/wall-streets-new-lie-to-main-street--asset-allocation-2011-1
Ask your advisor how he/she makes money. Then ask them how they make even more money than that. The answers should be very telling.
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