Straight Talk from Al Jacobs

 

SEARCHING FOR A FAIR RETURN

 

A recent online article illustrates a problem facing many Americans. It describes a young couple with a manageable home mortgage, no other debt and extra money for investment. But things aren’t going well; they can’t find anything to invest in.

 

Their problem isn’t unusual. Most persons seeking good spots for their investment dollars can’t find them. I’m convinced the investment industry operates to make the most at the investors’ expense. The most sought-after arena, mutual funds, operates mainly as a device to skim a portion of a fund’s assets, regardless of performance. The majority, now numbering more than fifteen thousand, operate with no concern for investor return. They’re mostly an exercise in pure marketing.

 

At an earlier time, your bank’s savings and money market accounts produced fair revenue. Today it’s tough to get 1% – though most banks aren’t ashamed to charge you over 20% on credit card cash advances. A bank’s only value is a place to park funds while waiting for a better use for the money.

 

As a last resort, you may turn to a financial advisor. Competent advisors aren’t available unless you have several million dollars. The rest aren’t really in the advisory business; they’ll just take a fee to throw you into anything. You’re better off at a casino.

 

So what do you do? Direct your own program. Thoroughly investigate whatever field you choose. Accept advice from persons you trust and don’t profit from you. Move slowly and cautiously and try to know what you’re doing.

 

Al Jacobs, a professional investor for nearly a half-

century, issues weekly financial articles in which he

shares his financial knowledge and experience.

You may view them on http://www.roadwaytoprosperity.com