This makes me sick…

It makes me sick.

Every so often I get so fed up with the way certain things work that I can’t help but rant about it in the hopes it will help at least a few members see the light. And the particular subject I want to yell and scream about today is incredibly relevant because it could soon cost average American families tens or hundreds of thousands of dollars each.

Please allow me to explain how this downright stupid thing works, why it could take thousands out of your pockets if you don’t know about it, and how to handle it to save thousands instead…

The banks want you to feel dumb about money. They want you to think investing is too complex for you. They want you to rely on them, even though they get it wrong more often than not.

That’s why you’ve always heard that you should be investing in things like mutual funds, pumping in huge amounts of your income to them in order to responsibly get to retirement.

I can’t even believe the banks have the gall to preach “responsibility” considering what they’re doing…

But obviously it’s easy to see why people think it’s the right thing to do to funnel their money into mutual funds and like financial bodies – you and most other Americans have been told to do so for years and years.

And the idea is sound – allow a “financial professional” to handle your money and take care of the funds that will get you to retirement.

Yet that is NOT how these things work.

And the problem is the fund managers themselves…

You see, fund managers get paid a percentage of how much is invested in mutual funds, in most cases. Put another way, they get a percentage of the mutual fund’s average “assets under management”.

What’s this mean…?

It means that the fund managers WANT you to invest as much money as possible all the time – that makes their payment as much as possible…

It’s incredibly dumb.

In fact, it’s inherently flawed because it incentivizes these mutual fund managers to continuously encourage YOU to put more and more money in the pot…and then stay in the pot even when the market is headed straight down!

So instead of “responsibly” letting you know that we’re headed for a rocky time or even a bear market so you should not keep all your money invested in stocks and other securities that you need to go up in price in order to benefit, these fund managers tell you, “Oh, don’t worry – it will turn around. In fact, I see some great value in this sector or that part of the market right now. With such low prices, we can buy low and sell high!”

It’s complete trash, but they don’t care.

So millions of good and decent people trust these mutual fund manager crooks to handle their money well, and they get burned…badly…

To the tune of almost half.

In 2008, the average mutual fund in America lost somewhere around 40% of its value.

Disgusting.

And the worst part is that people had 2 MUCH better options…

1. Sit on the sidelines. When a bear market starts, you don’t have to be invested in it. So while everything is falling, you can be standing still with your cash safe and sound.

2. Bet against the market! Yes, you can actually profit big time in a falling market. Simply by investing in the funds or securities that climb when the market decreases in price, or by betting in the market to fall by short selling securities, you will actually profit when the market falls!

Please don’t take this message lightly.

Just because you think you’re “supposed to” throw all your money into a mutual fund or retirement fund, or just because “that’s what everyone does”, it doesn’t mean you have to follow the pack to a loss of thousands and thousands of dollars.

Instead, outwit the pack and the dirty shepherds leading it. And build up your wealth in the process.