via Chris Pirillo President at Lockergnome and Owner, Lockergnome.com
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Dear Network: I received this letter from a reader. Thought I’d throw it out to you to help her with an answer…..
“Dear Chris,
My husband got me a fake Gucci bag for Mother’s Day, and I really appreciated the sentiment, but had a revelation. I’m tired of the knock-offs…I want to be able to afford the real thing sometimes. Do you have any advice for me about how to invest my money? (I earn $60K annually). How do I find an investment advisor? Is online stock trading advisable? Thanks for any advice you can send my way!”
Shirley S.
Seattle, Washington
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Chris,
With all due respect, this is a train wreck. And, you’re in the middle. This person is going to be disappointed, unless she’s wildly lucky to pick the next Microsoft / Google / Berkshire Hathaway, and subsequently be mad at you for bum advice. The market is a rigged game, and online trading is a fast path to the poor house.
Earning 60k per year, the person probably can’t (shouldn’t) even get a trading account because of “suitability rules”. There’s a reason why traders in big firms get paid lots of money and for an amateur to think they can compete is absurd. I’d suggest that they shelve this idea as a path to wealth.
If the writer wants to be truly wealthy, they need to give value to others in a way that is unique to them. It could be buying real estate and renting it. She will have to have a laser like focus on value and positive cash flow. Perhaps she can own her own side business. Maybe she can provide a service.
At 60k per year, I’d urge her to put her discretionary income into a tax deferred savings plan like a RothIRA in Vanguard Mutual Funds, and seek to increase her earning power. In thirty years, she may not be buying Gucci bags, but she won’t be eating dog food either.
I believe that the model for success NOW is: (1) ruthless financial discipline to capture part of your earnings while making every dollar work hard; (2) seek a white collar job; (3) have a blue collar skill; and (4) create one, or hopefully more, profitable web based businesses.
Then, she might become truly wealthy. If she has a husband who tried to make her happy, then she’s already blessed. Part of being wealthy is not having more “stuff”. It’s valuing what the Universe has given you. It’s not about having what you want; it’s about wanting what you have.
imho
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Reinke Faces Life 