Money Mastermind After Hours: Who Do You Trust for Investing Advice?

Yeah, so my life has been in a bit of upheaval recently, so I haven’t been writing about some of the conversations we’ve had after hours lately — even though some of them have been doozies.

One of the things we got into recently, while playing with the “Effects” on Google Hangouts, was who you should listen to when making investments. During our last episode, Kyle made a (hopefully) tongue-in-cheek remark about preparing for the financial apocalypse by investing 100 percent in gold, because Glenn Beck thinks gold is a great investment.

I didn’t say much about this because I’d already spent too much time on a Yellowstone Caldera tangent, but when we finished the live portion of the show, we began talking about what happens when you put too much faith in a single source for information, and when you trust someone to tell you what to buy, without checking it out to see what is best for you, you run into trouble. It’s not just that sometimes the people you look to for authority on an investing subject are sometimes dealing with shady companies and just in it for the money.

All right. That’s a big part of the problem.

The first thing you need to do is follow the money and remember that paid shills are paid shills, whether it’s a non-RIA broker trying to up a commission by selling you a product you don’t need, or whether it’s Glenn Beck trying to get you buy lots of gold from from Goldline because here comes the financial apocalypse, it’s a good idea to step back and ask yourself the following question:

Is this the right thing for ME?

As our guest Larry, from Investor Junkie, has often said in the past, no one cares about your money as much as you do. No one else is going to take care of it as well as you do. Whether you want to be a millionaire, or whether you just want to find a little financial freedom, don’t completely believe everything you hear or see.

Lots of financial “gurus” and “experts” have good things to say. But take all advice — especially investing advice — with a grain of salt, and adapt it for your specific situation. Especially if your “expert” looks like this:

After Hours

YIKES.

What’s Valuable in an Apocalypse, Anyway?

We also had an interesting conversation on our Skype chat about apocalypse, and what would be valuable during an apocalypse. Sure, keeping a small percentage of gold in your portfolio can be a good hedge. And, if you have a handy place to keep it, physical gold can offer you something tangible, and that has been considered money for thousands of years. But what is truly valuable in an apocalypse? Peter mentioned that he has recently learned how to shoot a gun. He could use that knowledge to obtain food or protect his family if things really did go seriously south (which no one on our panel is suggesting that they will anytime soon). You can’t do that with gold, and if everything is in complete disarray, who’s going to want your gold anyway? No, people will be far more interested in your food storage, fuel, and clothing. The gold you have may not be of interest to anyone. And if we have a serious situation going beyond the “regular” financial emergency, no one will be able to afford your gold anyway.

Perhaps the best bit of advice comes from Kyle himself. He doesn’t really think you should listen to Glenn Beck and buy a ton of gold. No, he says, get yourself away from urban areas. Maybe when the apocalypse happens, we can all make the journey to rural Manitoba and hang out with Kyle.

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