Reply #9: Don.... [View All]

[AnneD]

I am sure you didn't convince him. When he does finally learn, it will be too late. I have saved and invested since I was 26. I have made many mistakes with my money-but I learned also. I am 53 now and I think I know a bit money than most.

I was paying attention during the crash in the 80's and got out before the nasties hit. However, I lost my job and it took most of what I saved to retool myself and survive until I got another job. I was back to getting on my feet when I was set back by a divorce. I get back on my feet, am saving 15-20% (on top of my pension-no small feat since I work for the public schools)and bam, I loose 1/4 in the dot com bust. I consider my self lucky I didn't lose more. Oh and a bunch of folks that managed my 403B were convicted and sent to prison. Well, I move to a better paying school district and start rebuilding and wham. I end up in a custody battle which I lose and I am out lawyers fees, over half of my salary in child support and associated added fees (music lessons, health insurance). I had to scale back to a modest pittance in my 403B because I need every bit to pay my bill. Fortunately I have 11 months til I am support free and can get back to my savings, My grand total of savings at this point is $45K. If it weren't for the fact I have a guaranteed teachers pension, I would feel screwed. I wonder how your young punk would have planned for that. It's called life and it happens to you. At this point in life-I don't mind risk-but I sure as hell am not going to trust any Tom, Dick, or Harry with MY money, esp when there is what I consider a conflict of interest.

Our states pension is fairly safe because we have so many eyes watching it and it is sufficiently funded. It is in conservative investments and they don't siphon your money off in the form of fees.

I hope your friend doesn't live to regret his choice.