MONEY MATTERS: Christmas Dinner

By Jim Elder, Finance Editor

[December 2019 | San Juan Silver Stage | By Jim Elder, Finance Editor]

Jim Elder, Elderado FinancialAhh…the holiday season. I love this time of year with all of the preparation, shopping, decorating, parties, and—one of my most favorite things—enjoying time with family. We play games, reminisce about old times and, of course, share Christmas dinner.

At a recent Christmas dinner, all of the relatives were in attendance. We pulled out the table extenders to accommodate everyone. The house was full of all the traditional, tantalizing smells—roasted turkey, candied yams, fresh-baked rolls, and apple pie.

When the time came to sit down to dinner, we all assembled in the dining room and chose our chairs. My brother-in-law, Bill, sat to my left and my cousin, John, sat to my right. Aunt Sally and Uncle George sat across the table.

A prayer of thanksgiving was given and the mashed potatoes were passed around. Small talk ensued. As Bill, was grabbing a turkey leg, he blurted out that he just made a bunch of money in the stock market by buying the latest hot technology stock on the advisement of his stock broker.

Cousin John joined in and announced that he is investing in marijuana stock. He said he read an article that said marijuana is expected to grow ten-fold in the next year. “It’s a no-lose proposition,” John stated. “Everyone is using marijuana and more will continue to use it. Everyone wants to get high.”

Aunt Sally quietly chimed in and said that she could never take risk like Bill and John do. She proudly announced that she keeps her money in the bank so she can’t lose any of it. She stated that she would rather get 0.0001% in her bank CD than risk her money.

Uncle George said, “I don’t trust banks, and that’s why I own gold. I can see it and touch it. And, gold will never go to zero.”

My sister said, “Gold is dumb; that’s why I bought annuities. They guarantee I’ll never lose money, even though they have high fees.”

The conversations about each person’s pet investment product continued along with explanations as to why they love their own investment.

The problem with all of my relative is that they are looking to products to solve their financial situation. They worked with commission sales people instead of seeking advice and creating a financial plan before buying investment products.

As a Fiduciary Financial Advisor, I sat there quietly listening to the discussions. I heard the folly of fools and their justifications as to why they like their pet investments. They all missed the point. There isn’t just one kind of investment that is the best. A diversified portfolio can help spread out the risk and maximize performance.

Instead of relying on friends or relatives for financial advice, seek a fiduciary financial advisor to help build a customized investment portfolio that will help you reach your financial goals. A fiduciary financial advisor puts your best interests first. *