What do you Think of “Sure” Investment Articles?

//What do you Think of “Sure” Investment Articles?

What do you Think of “Sure” Investment Articles?

Whenever I see an article titled like the The Wall Street Journal’s, Ten Money Moves that Will Always Pay Off, I always read it.  Always.  I have no idea why I am attracted to lists like this.  It may have to do with the search for that elusive financial unicorn? or the quest for knowledge?

These list type articles rarely provide any new wisdom, but either provide me with a refresher of what I could be doing better or annoy me because I don’t agree with everything or think it is way too simplistic.

This recent list of ‘guaranteed’ investments provide a perfect example of what I am talking about:

  • Max out the 401(k)
  • Give up the Vacation Home
  • Max out IRA or Roth IRA
  • Pay off Credit Card Debt
  • Fire your Banker
  • Get your Tax Refund Early
  • Buy Inflation Protected Bonds
  • Buy A Bread Machine
  • Play Hardball with your Insurance Company
  • Get a Freebie from a Bank

None are financial unicorns, and some don’t even make sense in terms of guaranteed investments to pay off.

Those Guaranteed Safe Investments that Make Sense

Paying off debt and getting your tax refund early seem to be the only ones on here that will work for everyone.   As the article succinctly points out,

You’re probably paying at least 15% interest. You may be paying a lot more. You’d have to earn maybe 17% before tax on an investment just to keep pace. Boring? Nobody’s making 17% these days. So pay off your credit-card debt and brag to all your friends that you just beat Wall Street.

While I generally believe receiving a large tax return isn’t the worst thing in the world, I agree that regardless of the size the government shouldn’t hold on to it longer than necessary.

The inflation protected bonds, also probably belongs in this category, at least for now.

Those Safe Investments that are Questionable

While maxing out retirement accounts would be good for me, is it a sure investment?  I would venture to say anytime you are talking about the market there are no sure things in the short run.  Similarly, fighting/switching insurance companies and banking institutions, could make sense, but much more information would be necessary.

I haven’t been able to optimize the credit card rewards system just yet, but that is what the WSJ meant when it said get a freebie from a bank.

Weird Choices to Fill In

Then there are just filler ones – Give up the vacation home? Really?! How could that possibly be in the same list as the other sure investments? Buying a bread machine? Fire your bank?

Since the basics of personal of finance are easy main stream media sites need to fill up content.

What do you think about the list? Do you usually read lists like these?

By |2013-09-26T15:00:57+00:00August 23rd, 2010|Personal Finance|5 Comments

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Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

5 Comments

  1. Ron August 23, 2010 at 1:24 pm - Reply

    Sounds to me like they were desperate to get the number up to 10.

  2. Spokane Al August 23, 2010 at 12:59 pm - Reply

    I did chuckle when I got to the part about buying a bread machine. One must know his/her weaknesses and/or limits and the smell of baking bread would cause me to eat huge amounts of still hot, butter slathered bread, which would not be heathly and probably generate a net increase in spending in that category.

    Now don’t even get me started about the wisdom of owning one’s own ice cream machine.

  3. Khaleef August 24, 2010 at 2:36 pm - Reply

    I told my wife that I despise articles like this from WSJ and Yahoo Finance. As you said, it seems like they just post filler to push out an article, or to get to a nice round number.

    But at least it makes me try harder when I write articles and comments.

  4. RM August 24, 2010 at 3:15 pm - Reply

    Most of these “top ten” this and “top ten” that are more of to catch the readers’ eyes. To be honest, I’m guilty of it too. Some are goods, but most are just rehashing old information.

  5. Tracy August 24, 2010 at 9:23 pm - Reply

    I personally think sure thing investment articles are a truth identifier of sorts. It tells us what is happening with a certain investment and it lets us know as consumers that it might be worth looking into. It’s a tough call to truthfully enjoy an investment with out knowing all the in and outs of the investment.

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