The Wall Street Journal reported on a study that $14 trillion dollars were being held in retirement assets in 2008. Sixty-five percent of that total was in employer-sponsored defined contribution plans and about 25% of those assets were held in IRAs. Now don’t you think that is a lot of dough entrusted into an institution that has royally failed us?
Think about this: Every financial advisor will tell you not to put all your eggs in one basket…. but they continually “advise” us to keep investing in the stock market. They tell us to buy more – “hey stocks are cheap,” they say. They tell us to “stay the course” and not be persuaded by short-term losses.
But if you think about it more objectively, most financial advisors are essentially telling us to put all our eggs in the same basket. And it’s the same basket that they make money off of if you follow their “advice.” Plus, if everyone puts their money in the same basket, aren’t we all essentially violating the number one principle of good investing?
With figures like $14 trillion dollars, most Americans seem to be hanging their hats on the same path to riches. So does this mean we’ll all be rich? Or in the end, does it mean will we all still be working for a living and trusting the same system that has failed us time and time again? Think on it and do something about it.