Not too long ago, I wrote about the way I believe we get it wrong when it comes to financial advice. If you didn’t read that post, you can find it here.

Then, in last month’s issue, the Canadian version of More magazine included advice from some female financial experts — something along the lines of ‘what can we learn from the pros.’ It was a good example of this misapprehension that the pros know what it takes to build wealth, and it was interesting to learn that these ‘financial heavyweights’ made some of the most common mistakes — getting over their heads in debt and acting on inappropriate advice.

But if you need yet further evidence, here is an article from today’s Globe and Mail that I think speaks for itself.

These are turbulent times in financial markets. So now, more than ever, we should be putting our faith in analyst recommendations instead of trying to pick stocks ourselves, right?After all, analysts are paid generously to spend all day scanning company financial statements, so of course they’re in a better position to know which stocks will rise and which will sink.

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They’re professionals, right?

Published: April 27, 2008
How did all of the mechanisms operated by the mind-bogglingly well-paid men and women of the Street go so wrong?

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A scientific view of the relationship between money and happiness

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Ask and you shall receive; don’t ask — not so much

This article, by an academic who has studied the disparities between men and women in pay and other benefits, finds that women are not socialized to negotiate. The result, inevitably, is that they are paid less and promoted less often.

But this may not be exclusively the province of women — in my work with not-for-profit and faith-based organizations, I’ve often noted the same tendencies among men as well.
As a society, though we undoubtedly worship the pursuit of wealth too fervently, we also think it is more virtuous not to ask for more. Those who devote themselves to creating a better world often tend to aim for a degree of asceticism. The result is that the power of wealth often (not always, obviously) ends up in the hands of those who are less concerned with virtue. We pay money managers millions of dollars a year and day care workers live below the poverty level.
Certainly, living with less stuff is better for the planet, but money itself is the single most transferable, flexible form of energy we have. Money enables us to care for ourselves and reach our fullest potential free of the limitations that having too little money can impose. It enable us to support the people and causes we care about.

The key is not to view money as unimportant, or to pursue money for for its own sake, but to see it as a resource that can help us achieve meaningful goals and live a purposeful life. Remember, Mother Therese lived a vow of poverty, but it  was her ability to raise funds to create orphanages and hospitals that made her so effective in the world.
So … the next time you’re offered a salary, don’t just accept it. Ask for 10 per cent more. And devote that 10 per cent to creating your richest life, or to supporting a cause that is important to you.

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Warren Buffet invests like a girl

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Increase your will power, improve your life

But in the short term, you may need to ration!

Get the details here…

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Research proves that money can buy happiness …

but only if you’re spending it on someone else.

Read about the research in the NYTimes… 

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Some ideas that are so much more important than the credit crisis…

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Not quite what I was planning…

What is your six-word memoir?

Can your values, goals, vision and mission be clarified into just six words?

For inspiration, enjoy…

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100 billion solid arguments for couch potato investing

“INVESTORS collectively spend around $100 billion a year trying to beat the stock market. That’s the finding of a rigorous effort to measure the total costs of Americans’ efforts to surpass the returns they would have received by simply holding a stock index fund. The huge price tag helps explain why beating a buy-and-hold strategy is so difficult.

Mark Hulbert writes about the research of Eugene Fama, and the high costs of investment complexity. (Note that Canadian fees are significantly higher than those in the U.S., so this research would probably be even more compelling if conducted here.)

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