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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81560  
Subject: Re: Professionally Managed versus Self Directed Date: 12/16/2011 9:35 PM
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Just think if the overall market is flat for another 10 years, all while we have about 30% or more total inflation over the same period of time.

Just think if we have deflation instead of inflation. You can make a coherent argument for any scenario coming out of where we are, including a decade of nothing. There is little reason to expect rampant inflation (hasn't happened in Japan, which began zero-bound interest rates in the 90's, and quantitative easing in the 00's, and which still struggles with deflation. Hasn't happened in Europe. Hasn't happened in the US in 2009, 2010, or 2011, in spite of the hard money cries of "Weimar just around the corner!")

I recommended the invest in a product that would give him 6% guaranteed.

And again, this may work out splendidly, or it may not. It's a bit early to tell, isn't it? If inflation does kick up, will he be protected? I would rather remain loose. I don't believe that inflation is going to go from 1% to 24% next month, so I believe (perhaps wrongly) that I can step out of the way and get into something else in time. Of course I note that many others will be doing the same thing, but then that's always the risk. If you're running with the crowd, chances are you're going to get trampled.

Agree with others that this "Financial Consultant" is a salesman by any other name, and judging from the few specs mentioned, one who does not have the best interests of his client at heart.
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