We hear a lot about fake news in the political realm these days, but what about financial fake news? Find out whether popular financial headlines are indeed, fake news.
Listen to the episode...
The Bass Lines:
Social Security Is Going Broke.
- [1:24] – This one is definitely financial fake news. People seem to think there’s a pile of money somewhere that’s designated for Social Security. They think when it runs out, the system will break down. However, that’s not how it works. It’s funded by folks like you paying into the system. Social Security then gets paid right back out to people who are retired. Therefore, there is no pile of money sitting around. But there is a problem. There will reach a point when more people are withdrawing than contributing. After all, there are more baby boomers retiring than there are generation x-ers paying into the system. Luckily, millennials outnumber generation x-ers, and the system will even back out eventually. Remember, your congressman wants to keep his or her job as well. Therefore, we shouldn’t expect the Social Security system to disappear anytime soon.
The Crash Of The Dollar Is Imminent. Buy Gold Now.
- [5:12] – What a load of hooey. This one is definitely fake news. If the man on the screen is so confident the dollar is going to crash, why does he want to give you his gold in exchange for your worthless pieces of paper? That’s not to say you can’t have any gold in your portfolio. Just know when the world ends, we probably won’t be exchanging gold bars for loaves of bread.
Market Crash Coming Soon.
- [7:47] – How could you possibly know until it happens? Unless you have Marty McFly’s DeLorean, there’s just no way to know what the market will do in the moment. Remember, you cannot definitively time the market. Plan ahead. Protect some of your wealth, and when the market does crash, use the rest to take advantage of a great sale.
Watch out for the fake news your advisor might be telling you. It's easy to make grossly exaggerated statements when talking about the economy. Instead of fretting, plan ahead. - Mr. Stillman's OpusTweet This