The problem with the stock market is that financial advisors use averages over time to predict future performance.
They often deny doing it—but they are doing it.
I am hearing a lot of stories of professional financial advisors convincing the elderly (70+) to put most of their cash in the stock market.
This is a horrible idea—because the odds are very reasonable that the market could have a major (as in panic/capitulation) crash in the next five years—and the senior will not have time to make back their losses.
Seniors should be in the business of preserving capital as best they can—with an absolute minimum of risk.
For professional athletes they have major challenges—their “friends” and family often become their biggest problem. Financial advisors are not that trustworthy either—I think if I were in that situation I would split my wealth into several pots and have several different financial advisors helping me manage it.
True to a degree.
I am hearing a lot of stories of professional financial advisors convincing the elderly (70+) to put most of their cash in the stock market.
Then that person should be out of the business. No way someone over 70 should be majority stock.
For professional athletes they have major challenges—their “friends” and family often become their biggest problem. Financial advisors are not that trustworthy either—I think if I were in that situation I would split my wealth into several pots and have several different financial advisors helping me manage it.
Very true. Many of these kids come from nothing and suddenly have a lot of money. They see the rappers with the bling and the rides....and of course...the girls who will be theirs as long as the money olds out.
It's sad to see.