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Free Advice --- And Worth Every Penny Of It!

Tuesday, September 10, 2013 - 7:51 PM
It's clear Bruce Williams won't be joining DA any time soon:

     "DEAR BRUCE: I would like to start saving for my future. Recently I was
      given a check for $10,000. Should I open a savings account, a checking
      account or put it into a CD? -- Reader, via email

      DEAR READER: I wouldn't do any of the above. Putting money into a CD is
      almost like flushing it down the toilet.      . . .
      The only place I know of where you will get a decent return for your
      money is in the market."

Read more:
cumuluscumulus365 posts since
Jan 16, 2010
Rep Points: 1,714
1. Tuesday, September 10, 2013 - 8:17 PM
Our local paper stopped carrying him years ago. His picture is the same one that was used back then. 
Ally6770Ally6770944 posts since
Jan 16, 2010
Rep Points: 2,743
2. Tuesday, September 10, 2013 - 8:46 PM
Re #1 Ally. Sounds like a good move by your local paper.  Found it a bit
difficult to believe he actually makes money for that kind of advice; his
second comment " can ... rely on credit cards for a month or two of
income..." also seemed unwise/inappropriate.
cumuluscumulus365 posts since
Jan 16, 2010
Rep Points: 1,714
3. Tuesday, September 10, 2013 - 8:56 PM
This advice is worse on his part. Bruce Williams is dangerous for those that don't want to get into financial trouble...

DEAR BRUCE: How much emergency money should I have in savings in case I get laid off or an unexpected bill comes in the mail? -- Y.P., via email

DEAR Y.P.: There is no magic number. It used to be common to recommend having three months of after-tax income. Frankly, it isn't as necessary today as it once was.

Rather than saving the money in cash and receiving very little income from it, you can invest that money and rely on credit cards for a month or two of income should an emergency happen. But when I say emergency, I mean a true emergency, not something you simply feel a need for. The credit cards should be used only when absolutely necessary.
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,635
4. Tuesday, September 10, 2013 - 9:16 PM
My brother in law retired in 2000. His "financial advisor" told him that he and his wife each should buy something they had  always wanted. He told them they deserved it after working all those years. He bought a new truck and his wife bought a $30,000 kitchen. They paid for it with a HE line of credit. Not even a fixed loan, a line of credit.  He told him to not worry about an emegency fund because they had a line of credit on his home and credit cards. He told him the market averages 10% a year and he is only taking out 8%. People with no IRA's no savings should not cash out of their pension. He died broke in 2005. His widow is living on SS and her $300 pension and has a mtg. Her 40 year old daughter, husband and 2 children moved in with her 2 years ago and the husband has no job the wife went back to school. This financial advisor has the biggest firm in town. His offices are amazing. My brother in law was put in all high commission mutual funds with high exit fees.  I don't know how these "financial advisors" are allowed to stay in business. This "financial advisor" even has a radio show every Saturday morning. Worse yet how can some people be so financially dense. They went to the same school we did, and had the same teachers. The husband worked with my husband, and the wife worked many years in the same company I worked in. 
Ally6770Ally6770944 posts since
Jan 16, 2010
Rep Points: 2,743
5. Tuesday, September 10, 2013 - 10:44 PM
Re #4 Ally writes:
> can some people be so financially dense.
Realize you're referencing your relatives here, but let's also
include the financial advisor in that ;)
cumuluscumulus365 posts since
Jan 16, 2010
Rep Points: 1,714
6. Wednesday, September 11, 2013 - 6:24 AM
The investors (actually everybody) should take Investment 101:

Rule #1: Never listen to anybody for financial advice until the approach/concept is thoroughly validated and experimented by the investor herself/himself.  Always check this guideline: If it sounds too good to be true, it is.

Rule #2: Avoid herd mentality at all cost. 

Rule #3: Develop ones' own investment strategy that (1) earns stable (decent but not high) returns, (2) keeps one sleep well at night.
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427