The Lost Decade - Where Did My Savings Go?

Unfortunately, we all tend to learn our lessons after the fact.

The one we are learning now is that "investing" into stocks is risky behavior. For many Americans, looking at their retirement account is like 1995 all over again - all those gains have evaporated.

I think we'd all be better off if we called "investing" by what it really is: buying financial products.

The word "investing" puts a twist on "buying" that takes all common sense out of our decisions. We start to think that when we "invest" we are doing something more grand, more guaranteed if you will, with less chances of failure.

If someone said to you: "Jane, would you like to buy a mattress" you would ask a lot of questions. How does the mattress compare to others on the market? Is there a guarantee against defects? Who makes the mattress? Now think about how many questions you ask when a "financial adviser" says you should "invest" in a stock.

Now if you would just substitute "financial advisor" to "salesman" and "invest" to "buy" think about how that changes the dynamic. You'll ask a lot more questions and keep more of your money.

Everyday more of us are realizing that the stock market is not a strategy for retirement at all, it is a Ponzi scheme which leaves hardworking savers holding the bag.

How did we become so enamored by the stock market? We'll cover that next time.