The may be no dumb financial questions, however, there are some incredibly stupid financial answers out there.
I must admit I stole the title from another blogger, however, it does lend itself to yet another happy rant about some of the horrific financial advice given to folks these days, in response to some dumb financial questions. What kind of answers?
“It’s a great deal only paying $20 for a $200 pay day loan”
Indeed, what a wonderful piece of advice to the question, “Is it a good idea to get a pay day loan?” (which while a naive question, still a good question).
“Yes, a sound retirement plan is buying lottery tickets and hoping for a big win”
I do know a lot of folks that are actually following this advice, well, they have so much debt they feel this is their only option.
“Debt is inevitable, so don’t worry about it too much”
This answer to the is debt bad question, is standard these days, they have even created the concept of Good Debt, to make you worry less about it. Debt is not inevitable, it is a choice, and you should never stop worrying about it (or hating it), a dumb financial question but a moronic response too.
“An MER of 3.5% for this Mutual Fund is essential, after all we have the best minds working on this”
I believe I may have heard a certain CBC financial pundit who may have made this comment about his own funds, but I may be mistaken. If you are paying 3.5% MER, good luck with that Mutual Fund, is all I can say. The question asked could have been, “Why am I paying such a high MER for a fund that is not performing?”
That is the hard part. Ask the questions, no matter how dumb you think it is. The really hard part is figuring out stupid answers. If you get an answer you think is wrong, ask someone else.