Tag Archives: politics

Online Stock Tips? Buyer Beware.

There was an article in the Wall Street Journal on February 4, 2009  about new social networking services that allow users to share investing and trading tips. It is a great way for like minded people to build a community and share ideas. In many ways the idea is not new – we have seen chat rooms, message boards, and the like before. However, these sites operate more like Twitter where messages are limited or truncated to a preset number of characters and people only build ‘followings’ only if they have something of value to say. The idea definitely is progressive and timely as many people are seeking ways to build or rebuild wealth in a deepening recession.

But buyer beware! There are a few things to keep in mind or questions you ask yourself before you throw your money into any investment based on the advice of someone – especially someone you don’t know.

No one knows where this market is headed – let alone any individual stock. The current financial crisis is evidence that not even the pros on Wall Street have a handle on the markets. This could be one of the riskiest times to put your money into the unknown.

Speaking of unknowns, who is providing the information on the stock? What is the track record of this individual? I always seek advice from someone who has been successful in whatever subject they are discussing (not just money). So, if the person dishing out the information retired from an investing career, it might be worth considering. Otherwise, be careful.

Be realistic. We have seen with the Maddoff scandal – and countless other examples – that if it seems too good to be true it probably is. Yes, we have heard this before, but the tough economic times are giving life to more scams and con artists than ever before.

Is the timing right for you? Given how hard the markets and our portfolios have been hit, is now the time to put your hard earned money into ’stock tips’?  We all are eager to make up for our losses, but there is (still) no quick fix. Building wealth is a lifetime endeavor. Don’t get yourself into deeper financial straits by trying to make up for the market meltdown. We all are hurting.

Final thought. Personally, I would rather see my financial or investment adviser tracking and researching the markets. I worry that someone who is texting stock tips or using social networking services may not be focused on the right activities. Markets move rapidly. Information changes even faster. I need and want an informed adviser – not a good sales person.

Copyright FELA, Inc. 2009
Ms. Career Girl, a Financial Education & Literacy Advisers company
www.themindsetforwealth.com

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Resilience in Times of Economic and Career Crisis

I received the following Facebook message from someone I went to High School with today:

Nicole,

I am finding that my motivation to do my job is falling off little by little every day and the push to keep going and insure I am the best is becoming a greater challenge every day.

I am telling you this in hopes that you- one of the very few people who may understand my mentality that anything short of the best is not good enough- could offer some words of wisdom or bits of advice on how to push through it.

I find myself day dreaming of what it would be like to have a normal job, one that does not include the responsibility of keeping others employed, or having to continuously be an ass, or worst of all put up with two moron bosses that never communicate. You know, the kind of work where I have a few simple tasks a day and maybe a slightly difficult decision from time to time, and then I can go home to an average life…

Well hopefully you have some words of wisdom, because I’m running out of them…

-C.

I asked my friend if I could use his message for a post, because I’m almost positive a majority of twentysomethings feel hopeless about their job and career path at times.

First, the news has becoming depressing. Hearing about friends and family members losing their jobs and getting pay cuts is sad. Feeling the slow down of being in an industry that is highly dependent on the economy is scary. Seeing huge financial institutions fail, and their CEO’s making millions of dollars a year is bizarre. The fact that America is now considered “debt nation” and the government has to bail us out is awful. All of this “doom and gloom” has probably led many people to a small case of temporary depression!

As far as offering advice to this common situation, my first suggestion would be to take a few days off. Or maybe more if you can. Perhaps a little vacation would give you time to get your head together and either cope with the situation or pursue a new path.

Second, if you’ve determined that you are truly miserable accept that only YOU can change your situation. This may require going back to school, moving to a new city, quitting your job to pursue a new one, etc. Usually you will know if it is time to take the leap. My guess is that you will feel a million times better once you do.

Lastly, I think C.’s email brings up a VERY important topic: resilience. When talking to my business partner, Blake, over the weekend we emphasized how important this trait is when facing the challenges of building a solid business or career. If it were easy, everyone would be doing it- right? C. mentioned that “anything short of the best” is not good enough for him. If that is the case, he may need to accept that either a. he is not in the right job at all, or b. that being the best, or accepting the most difficult challenges are usually the most daunting and the least fun.

So why is resilience so important? Resilient people bounce back and don’t quit or give up easily. Their ability to keep going will eventually lead them to success. Resilient people can thrive and progress in difficult circumstances, and tend to get ahead when less adaptable people won’t.

After receiving C’s message, I wrote back and asked if I could post a response to his dilemma. He agreed and then wrote the following:

I asked my friend yesterday if he thought what is going on around us right now will affect the way our generation saves, works, changes… The way I see it is that we turning into our grandparents’ generation, that of the depression era. The mentality of working until your eyes are burnt, fingers are bleeding, and thoughts are worthless all to go to bed and wake up the next day to do the same thing. And for what? The fear that we will lose our jobs and be out of work for years to come?

That is a very interesting question that I hadn’t thought about before, but really it makes perfect sense. Living our twenties-a vulnerable time period in it self- while in a time of economic hardship and turmoil must affect the way we handle risk, finances and career choices. It seems that many of us are becoming paralyzed by fear, and therefore settling in many areas of our lives. It sounds like people like C. are hoping to hold on to anything that is stable and secure, even if it makes them feel like they are dying inside.

Gen Y is said to be a self-centered, free thinking and entrepreneurial generation. It’s almost ironic that Gen Y is also living through the present conditions we are. Perhaps it’s a big lesson we needed to learn.

Either way, my advice is to make choices that make you happy and keep looking forward. Be resilient and know that we are only in our twenties and have the rest of our lives to pursue more glamorous ventures.

Good luck to C and all others who are feeling this way!