Why allow the financial industry to help itself to your money?
This blog provides you with objective information that could solidify a lifelong commitment on our part to low cost investing. Low cost investing is how you keep more of your own investments for your family, instead of naively giving your money to the financial industry.
In case you did not notice, the financial services industry has not done the world any favors lately. The financial industry has probably not done you any favors, either. This industry will take as much as it can and then try to take more. Only you can protect your own wallet from an industry that overall has a highly negative value-added with respect to individuals.
A dog eat dog securities world with trusting sheep in an unfair fight
Global securities markets have a dog-eat-dog ethos with winners and losers. Highly competitive and ruthless securities markets are necessary for efficient price setting and capital allocation. I applaud when full-time financial professionals engage in competition among themselves with knowledge, resources, and skill.
However, when similar strategies are applied to individuals who lack knowledge, education, and resources, then this is an unfair fight. When the inadequacies, ignorance, biases, and misconceptions of individuals are exploited systematically, this is deplorable. When financial industry marketing and promotions imply that there is a partnership or advisory role, but actions taken indicate that this is not the case, then this is moral bankruptcy. When the financial industry is so strong that it distorts fairness in governmental regulation, then many deplorable behaviors are not criminal, only because laws and enforcement are too weak.
I believe that enlightened individuals should never naively expect fairness, when they deal with most of the financial services industry. Despite the financial industry’s recent self-induced credit crisis, self-immolation, and taxpayer bailout, there is no reason to believe that financial services industry will ever change. The game is just too profitable for the financial services industry to expect it ever to change.
The mass of American financial consumers are trusting, docile sheep regarding their personal financial affairs. The amount they are willing to waste on overpriced financial services is astonishing. Far too many US consumers pay far too much and get woefully little value in return from the financial services industry. The industry repeatedly scrapes the consumer excess off the table and stuffs it into its salaries, bonuses, and corporate [...]