Being solicited for financial advice

[Lazarus]

I have been asked for advice a number of times, mostly on how to take the company pension or 401k. But as far as I know no one has taken any of my advice. Most people do not have enough to support their spend rate so they don't want to face up to that. Some have their self identity wrapped up in their job and can't handle just being another old man in line at Wal Mart. No one to boss around. No meetings to call.
Very few people have thought it out. When they ask for advice it's usually for a shortcut. When they find out it took 30 years of discipline they quickly lose interest.

 

[okapi]

Looking back,when I tell these people how much OT I worked in my former position,hours,weekends etc. Also about living below my means,the conversation tends to end their.As many already mentioned,they want an abracadabra answer.

 

[target2019]

Free advice is worth exactly that. You will not be rewarded for your advice, but will always shoulder the blame.

A co-worker asked me about annuities, since she had been to a financial dinner with a friend. She could see through the talk, but asked me about it. I told her my in-laws have a few annuities through USAA, and encouraged her to study more about the subject. Some day it might make sense, but she shouldn't make any moves based on a dinner.

Usually when I am asked about money I turn the conversation to my car (10 years old) and theirs (usually a late model leased Accura or Lexus.) That usually ensures an early end to the conversation.

 

[scrabbler1]

I gave a good friend some investing advice in late 2003 when he had some spare cash laying around (and a running surplus from his job income) and wanted to gt a better rate of return than the bank was giving him without taking on a huge amount of added risk. He has an individual (Roth) IRA and a 457 plan through his employer which is the local government. He also owns some stocks through a broker friend of his.

I suggested he invest in the intermediate-term muni bond fund I had been invested in since 1994. His broker repeatedly told him he was crazy and told him to get out of the fund. (I think his broker just wanted him to sell and invest more with him.) Anyway, after years of mostly tax-free dividends, he just bought an apartment in December and sold off a good amount of that fund's holdings, at a nice profit, and is very glad he took my advice not only to invest with the fund but to stay in it the whole time over the objections of his broker friend. (I prepare his tax returns so I get to show him every year how little these dividends are taxes.) When he told his broker friend about how well he did, the broker friend dismissed it as pure luck.

 

[Midpack]

I would stay away from giving financial advice. Like others above have mentioned, I like the idea of recommending a book (or this website http://www.early-retirement.org/)

Maybe I should have, but I've always been very careful about recommending this site to the people who asked for my advice while I was working. As I stated earlier, at least 90% were just looking for a shortcut/silver bullet, and I didn't see any point in having them look for same here. YMMV

However, I have encouraged a few people to visit here who were more LBYM inclined with savings to work with.

 

[Redbugdave]

When they ask at work, I stay pretty vague. Mainly say lbym, etc. I know, (and they know, but won't admit it), that they won't bite the bullet enough to follow through. I think most people put up with working jobs all their lives because they can't control their lifestyle and spending...instead of doing something about it. Like smoking and knowing it is bad for you, but you still smoke. I think if they really wanted to learn, they would take the bull by the horns and not have to ask. I remember the days of going to the library to study the Morningstar updates on funds, etc. Remember those days? Now, you have the internet and it's all around you. There's no excuse.

I really DO try and help out my friends. The people I work with are a different grouping... acquaintances. Those people I keep at arm's length and don't give much advise, even when asked.

I keep my real life separate from my work life. I guess if a person were in one of those dream jobs...like astronaut...work and real life would be the same. But, most of us do not live a dream job. So, that's why most of us retire early so we can have a whole life instead of a partitioned life.

Sorry for getting off subject a little bit...

 

[FreeAtLast]

Just tell them about this Forum and the advise that they can get here from so many people.

You have helped them, but are not liable for any recommendations. This sounds like what you want to accomplish.