The prevailing advice coming from most “financial advisors” is the same old oatmeal that has been served up for generations: “Put away a portion of your money each month and then hope you don’t outlive your savings.” Most of those folks hand their money over to a financial advisor who then invests it (charging a fee for each transaction) into a mutual fund.
I don’t think that’s the right way to go. Why not?
I hate giving control of my financial future over to anyone, especially to a person whose interests aren’t aligned with mine. Most financial advisors make money even if their clients lose theirs. Does that sound right to you?
In a video tip posted to www.ForeverCash.com, I railed a bit against this way of thinking. And I mentioned those poor people whose retirement accounts had been placed into the hands of Enron or Bernie Madoff or Mortgage-backed Securities pre 2008. Where are their savings now? What does the future hold for them?
It amazes me when I see people insisting that saving up a nest egg in a 401k is still the best plan despite all the evidence to the contrary. It reminds me of the old saying “Insanity is doing the same thing over and over again and expecting different results.” I don’t want that for you. I want the opposite for you.
Instead of focusing on building a pile of money that can go up in smoke at a moment’s notice, I want you to focus on your monthly expenses and to focus on building up one Forever Cash stream after another until you reach that number.
I’ll take cash flow over a pile of money any day of the week.