Ways to convince friends to invest in the market and/or F.I.R.E?

[jollystomper]

You cannot convince them. They will have to convince themselves. When things are going well financially, most people think they are geniuses. When things go badly financially, few want to admit they have made mistakes. All you can do in the meantime (IMHO) is to be prepared to answer questions about your own situation when asked, and explain why you have chosen the path you have.

[Yoheadden]

Unfortunately, I’d have to agree with everyone here. Not because we don’t care, but have been there too many times. At some point, you just have to wash your hands of trying to help people, who don’t want to be helped.

[Time2]

You may just want to forget about it. If they bought Bitcoin a year ago, they are up over 400%. They probably wonder why you would be happy with 14%! No, I don't own any cryptocurrency.

[MRG]

At least they are investing in something. I have family that inherited a sum that would have been life changing for them. Think they bought some new cars.

[Andre1969]

I learned my lesson on investing advice awhile back. A former friend of mine worked for some kind of bio-medical-whatever type of company. He had a 401k with them, but knew nothing about investing, so it was all going into a money market account. I told him he should at least put a little bit into his company's stock. Not a huge amount, but just enough that if he lost it all, it wouldn't hurt him, but if it took off he'd be happy he did.

Well, he did it, and was even able to get it at a slight discount through some program his company was offering. Well, it seemed like as soon as he bought it, it went nowhere but down. And then he got fired. We pretty much ended the friendship about 4 or 5 months later (not because of the stock; we just had different viewpoints on life and such).

I always felt bad that he bought that stock, based on my recommendation. I don't know if he ever sold it or not. I guess one consolation though is that he bought it around $30/share; I just checked it and it's around $23/share now. So if he still has it, he's lost money, but not totally wiped out. And, this guy is 35 now, so still young enough to recover in the long run. I'm hoping at least he's started investing in something other than the money market fund, though.

If I had recommended that he put it into an SP500 fund instead, I imagine it would have easily doubled in that timeframe. But, hindsight is always 20/20!

[Gumby]

You can't. It's a problem as old as the Bible:

Then He added, "Truly I tell you, no prophet is accepted in his hometown." Luke 4:24

[Midpack]

Quote:

Originally Posted by Aerides if you want to stay friends with them, you never bring it up again.

+100. I’d never try to convince someone else what to do with their money, even if they ask me to.

Ask yourself, if someone else tried to convince you where to invest or when to retire, how would you take it? I’d nip that conversation in the bud immediately…

[easysurfer]

Quote:

Originally Posted by jollystomper You cannot convince them. They will have to convince themselves. When things are going well financially, most people think they are geniuses. When things go badly financially, few want to admit they have made mistakes. All you can do in the meantime (IMHO) is to be prepared to answer questions about your own situation when asked, and explain why you have chosen the path you have.

+1

As the old saying goes "You can lead a horse to water, but you can't make it drink ..."

I remember years ago I had a sister who was going through a divorce. Spent several time with her during her divorce. One of them was investments as she we interested in how I did what I did. So, I talked about concepts like passive investing, DCA, LBYM. Even helped her set up accounts at Vanguard and shared the spreadsheets I use. Was fine til she remarried then her and new hubby pretty much raided her accounts and went the debt route. So much for that.

More recently, I have a niece who during graduation party asked me about investing. That she wondered what I did and if I could help her. This time around, I spoke generally again about passive investing, first paying off student loans. Then I recommended a book that and said, read the book. A lot of good concepts there. Afterwards, if questions, she can reach me. She said she bought the book, but haven't heard anything back. That was months ago.

When talking to others about my investing strategies, I usually say I really don't have a hot stock tip or anything. Just follow the indexes. They then seem disappointed. That's usually a conversation killer .

[Time2]

With the market having had such a long run and hitting new highs, I have a hard to suggesting people put money in the market. Yes, I know the market is often at new highs. Since my kids are young, I still suggest to them buying the market.

[The Cosmic Avenger]

I agree with everyone saying you're not likely to change anyone's mind. However, since that's not what you asked, I'll try to address what you did ask, how might you get them on board?

I'd say, since you said they discuss finances with you, put their numbers into FIREcalc, or if you just discuss generalities, just use your best guess! Seeing how saving from their 30s or even your 40s can compound is difficult for some people, especially if they aren't used to doing that kind of analysis. Put in that they work until 70 (to maximize SS, and so they'll be on Medicare when they retire, and assume a fairly simple two-fund portfolio. That might give them a decent chance of doing well, at which point they might take more of an interest. This would work best with those people who have read or heard about things like margin calls or annuities or whatever and felt overwhelmed, but it might help show them that the very basics are, well, very basic!

[pjigar]

I don't advise anyone on saving/investing unless they are curious. It never works without their own motivation. Some people knowingly give up because they can't see light.

PS: And don't get me even started with the people who DO save and invest with a mindset of finding the next best thing. Sad to say but those people have the slowest growing portfolio. Rather than advise, I ask them simple questions like do you know your annualized rate of return? If not, can you please find out? They never come back with an answer but I hope it at least wakes them up from the dream world. I also tell them about FireCalc in hope of showing them the light.

[2HOTinPHX]

Quote:

Originally Posted by JDPascale I think you could certainly suggest they watch a few videos on the subject. They may or may not follow thru but unlike others here I feel it's worth a try. I wish someone had tried to when I was younger. All I remember hearing was why bother were never gonna be able to afford to retire. Well retirement is going to happen for most of us and it's better to start planning for it now. I especially like this video as it shows how important it is to start early. The more time you have to let things compound the less daunting it seems to reach a goal of a secure retirement. https://youtu.be/iQbfLrVNd6I Good luck and hope you can make a difference.

Has anyone here even watched this Money Guys video? Seems everyone here just disregards videos for some reason. I find it way more useful to let people who do this for a living explain things than someone listening to little ol me.
If they don't have 10 to 15 minutes to watch a video like this then it's on them.
If the examples towards the end of this video don't inspire you......I don't know what would.

[Gumby]

Quote:

Originally Posted by JDPascale ... Seems everyone here just disregards videos for some reason. ...

My reason is that I can read far more rapidly than anyone can speak. So I can learn the same thing in less time by reading it.

[Lawrencewendall]

Quote:

Originally Posted by JDPascale I think you could certainly suggest they watch a few videos on the subject. They may or may not follow thru but unlike others here I feel it's worth a try. I wish someone had tried to when I was younger. All I remember hearing was why bother were never gonna be able to afford to retire. Well retirement is going to happen for most of us and it's better to start planning for it now. I especially like this video as it shows how important it is to start early. The more time you have to let things compound the less daunting it seems to reach a goal of a secure retirement. https://youtu.be/iQbfLrVNd6I Good luck and hope you can make a difference.

Thanks for the video. Posted to my FB. Hopefully Nieces and Nephews watch. I gave up on older Siblings.

[2HOTinPHX]

Quote:

Originally Posted by Gumby My reason is that I can read far more rapidly than anyone can speak. So I can learn the same thing in less time by reading it.

I guess some prefer to read but for me I prefer videos with the interaction of the speakers and graphics, charts and humor sometimes thrown in.

[latexman]

Be a shining example to them! Live beneath your means. Save. Invest wisely. Become FIRE! THEN, they will start asking your advice!

[pjigar]

Quote:

Originally Posted by Gumby My reason is that I can read far more rapidly than anyone can speak. So I can learn the same thing in less time by reading it.

Same here.

[2HOTinPHX]

For those that like to read how about this?index-card-1200x899.jpg

[2HOTinPHX]

Quote:

Originally Posted by Lawrencewendall Thanks for the video. Posted to my FB. Hopefully Nieces and Nephews watch. I gave up on older Siblings.

Glad you liked the video.
This is also a great video for young ones too but some of it maybe a little controversial. This guy is pretty intertaining.

https://youtu.be/EKIhc3tS0os

[ElizabethT]

It's much like religion and politics IMO- if you are not both on the same page, then don't discuss it because, I guarantee, nothing good whatsoever will come from it.

I think an important question to ask yourself is why you feel so compelled to try and force them to change? Don't be to quick to answer yourself, because I don't believe it's solely about altruism. Perhaps some ego has crept in as well? Worth pondering, again just my two cents and worth what you paid.