I believe the media, and personal finance media “experts” in particular are pretty far out of touch with the average person. Yes that means most of the people whose names you might know. Anyone that is trying to sell a book, pretty much.
A side note, anyone who is trying to make their living selling books and product endorsements is not acting in your best interest. It is in their interest to say things that will promote their systems. They may strongly believe that what they are saying will help you, or maybe they don’t. Ultimately, you aren’t the one they are most keen on helping. Keep that in mind.
Where you put your trust is very important. It has a whole lot to do with where you eventually end up in life. Not just for personal finance, but for everything.
The average person would like most to never lose any money on their investments as their primary consideration. Gaining money on their investments is somewhere farther down the list, not necessarily second.
I find it really weird that personal finance media “experts” (henceforth PFME) never even attempt to address that with their advice. When was the last time you heard a PFME suggest that somebody should put 75% of their money into bonds?
Putting 66-75% of your money into bonds is about where you want to be, according to Portfolio Theory, if your primary goal more than anything else is to not have your account value be lower this year than it was in the last one. No PFME ever says that.
Indeed, every PFME (that I have ever read the advice of) has ever suggested that anyone should be anywhere other than as near to 100% in risky investments that they can possibly be. The risky investments used by PFMEs are almost always either stocks or real estate. Furthermore, every PFME that I have ever seen goes to extreme lengths to try to prove that being exclusively or nearly exclusively invested in *whatever product they are advertising* is the safest possible thing to do.
I honestly don’t see how that claim can be made with a straight face.
Everyone who invests primarily for safety of principal first and gains second as their job, the people who aren’t trying to sell books, invests completely differently. Anyone whose job it is to calculate risk (actuaries) can tell you that their advice isn’t safe. Not the way normal people define safe.
I want to see a PFME who actually attempts to lead people to a place those people want to be led. The place where people want to be led, as before, is a really safe one. I will at least attempt to be a PFME that is trying to fight the good fight. The one that actually tries to lead people where they want to go.