I had some disturbing news this morning in my kid’s school parking lot. Through the gossip gang I heard that one of the parents had lost 70% of their wealth because of bad investments. Now, this is a doctor who probably makes around 600K+ a year. To loose 70% of your investment value is even more significant when the numbers are this big.
The unfortunate soul thought he could focus on what he did best, which is save lives, and leave his hard earned significant wealth in the hands of the “financial expert”. With no knowledge of how to manage his finances he had no choice but to be dependent on what the “expert” said.
Fast forward 10 years and the doctor was so heavily invested in gold, penny stocks and other sub standard investments that he has little of value to leave to his kids.
I’m going to say this as bluntly as I can: This would not have happened had he had a sound financial education. And this should not happen to any of our kids. Financial Literacy is by far the #1 tool any child needs to be successful. If you do not know how to grow and appreciate your money, your lifestyle cannot grow — it’s as simple as that.
One of the articles we have written so much about is Invest in Gold. The article at ExplorerHop.com takes readers on a journey of when and how to invest in gold. There is also a “mission” or a challenge where subscribers use the online tools we have at ExplorerHop to see if Gold would have outperformed the Dow in any period. (The quick answer is unlikely that over an extended period it would have).
While holding Gold Bullion is certainly a valid investment strategy for the long term, gold stocks have underperformed to the market in general. But if the doctor had only had this knowledge, he would not have been in the pickle he is in today.
Want your kids to have a sound future? Teach them about money.