On Friday I posted about being careful about following advice that you are given about investing. Well, today I ran into another person who had advice for me about investing. There was nothing malicious or devious about his advice. He probably had good intentions. However, he never answered the question that I originally posted to the group. His whole posture in answering my question, which really had nothing to do with my question. His advice had more to do with trying to become my unofficial financial advisor that I didn’t ask for. This person was touting value investing with dividends being secondary, I made it clear in my responses that my focus was on dividends and not share prices because I want to avoid risk whenever I can. Which I why I prefer funds over individual stocks.
So, if I follow this gentleman’s advice I would now be following HIS strategy and not MINE. Be especially careful when you post a general query in investment group forums because you will get all of the so-called experts that will respond to you like a real financial consultant who has spent a considerable amount of time with you and has a detailed knowledge of your financial situation. Be extremely careful. This not to say that investment groups and forums should be avoided. No, you can gleam some useful information from these sources. Just be very cautious with the information you get.
As for me, I’ll remain a member of the group but I’ll no longer actively participate by asking questions. I’ll try to figure things out on my own or seek information from a professional or wait and see if anyone posts a similar question to the group I have no time for unsolicited advice where the full detail of the financial situation isn’t known. You will always encounter those that want to flaunt their “expertise” and look for opportunities to do so without being asked. They tend to read more into a question than what was intended. It’s called The Dunning-Kruger Effect.