By now you’re probably sick to death of the conversation around the Jim Cramer vs. Jon Stewart ratings booster. If you don’t know what I’m referring to, you can find a CNN report about the whole affair here (sorry, the video has been removed).
An interesting point in all of those conversations is that, in spite of what you may think, Jim Cramer, or Suze Orman, or Bob Brinker, or even (heaven forbid) Dave Ramsey, are entertainers first and foremost. Jon Stewart was on the nose when he said that both he and Cramer are snake-oil salesmen. It is their job to attract listeners so that advertisers can push their products. In between these product pushing moments, these folks do their best to provide provocative responses to the issues (in this case financial issues) that are on our minds. But it must be entertaining, or we (the consuming public) won’t watch or listen.
Granted, it is in the best interest of the host or hostess to provide correct answers and information - but often there are answers given with an air of certainty that is at least inappropriate, possibly even unwarranted. Each individual needs to understand that with every recommendation there is a disclaimer: This probably doesn’t exactly fit your specific situation. Since the entertainment is designed to be attractive to the widest possible audience, bits and pieces of every show may fit your situation, but most likely you need to filter the information to truly meet your needs.
This is not to say that these folks don’t give good advice. Of the four I mentioned, you could certainly do worse than listening to any one of them. Perhaps even better, follow all four (and add some of your own to the mix) and then come up with your own blended strategy.
Because in the end, no matter how mad you may be at Jim Cramer et al, it ultimately is your own decision to make the moves you make (or choose not to make). Hold yourself accountable – learn enough about your finances to understand what you’re hearing and make good choices. Have a trusted advisory group (family members, friends, co-workers, me, etc.) that you can ask questions of and receive unbiased answers.
Take recommendations from expert advisors, but also understand what you’re agreeing to. Blind faith in an advisor led to Bernie Madoff’s getting away with billions. Question everything – a true fiduciary advisor will welcome the opportunity to explain things. If your advisor hesitates to explain her recommendations, you need to start looking for another advisor.
It’s important to have information at your hand and in your mind when making decisions – but remember to get more than one single opinion, and to keep your trusty grain of salt handy. This wouldn’t necessarily have saved you from the market downturn, but it may have helped.
Click the link to pick up a copy of A Social Security Owner's Manual or if you'd prefer the Kindle version (and let's face it, ALL the cool kids do!), you can find that at this Kindle version link.
I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 25 years of experience in the industry. Read more from this author
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".