Show Me the Money! Where’s the Beef? Never Trust a Skinny Cook!
What are these pop culture sayings telling us? They are telling us to always ask for proof. This is never more of importance than when it comes to your hard earned savings.
Earlier in the week I had a conversation with a younger fellow in a conversation. He worked for a big financial institution and was trying to pitch me on these great new investments he had that were averaging 9% per year (he obviously did not know me very well or what I did). I won’t get in the specifics; however I asked for how long had they averaged 9% per year? Was that a 9% simple interest calculation or compounding interest calculation? What were the fees, and was the 9% before or after fees? What was my minimum return contractually in the event things did not go as planned or I needed the money before my 60th birthday? Finally, could he show me an actual statement from someone (maybe his personal statement since it was such a great deal!)?
Needless to say he was not too happy. I felt bad that maybe I had been harsh. But sometimes we don’t know what we don’t know, or we think we know something that we really don’t. The moral of this is to always ask questions like: Show me proof (i.e. “Where’s the Beef?”). Show me the Money, and how can this company give me this rate of return? Finally, ask the person giving advice can you see their stuff, where have they put their money (i.e. “Never Trust a Skinny Cook”)?