What Happens When You Ask Facebook How to Invest

Written By Nannette Kamien

I Earn a LOT of Money - How Should I Invest? This was the gist of a question that was posted recently on a moms Facebook group I’m in. The answers and the discussion that followed were fascinating.

Let me start off by saying that obviously I don’t give investment advice in Facebook groups. I usually respond with a generic “it depends” and then let people know I’m a CFP® Professional, invite them to book an intro call with me, and share my website. It’s rare that someone takes me up on the offer. I always wonder what happens to them after.

There were some answers that provided decent advice.

  1. Figure out your goals

  2. Set up an Emergency Fund in a high yield savings account

  3. Pay off debts with high interest rates

  4. Contribute to your 401k to get the full match

  5. Consider funding Traditional or Roth IRA accounts

  6. 529 Accounts to save for college

  7. Get an estate plan

  8. Get insurance

While these are decent financial planning suggestions - they don’t address the actual question of “HOW” to invest. There’s more to investing than opening a specific type of account.

Then there was an interesting smattering of the usual advice that always shows up on the internet:

  1. Put the money under your mattress

  2. Real Estate or Businesses for “passive income”

  3. Crypto

  4. Insurance policies like IULs

  5. Specific ticker symbols to purchase (someone asked how to pick and the response was “I do my research and then I gamble!”)

Finally, there were books that were recommended, other facebooks to join, workshops to attend, and other “advisors” recommended. It’s enough to make anyone’s head spin.

I feel like I should have a better response to these kinds of Facebook posts. But I can’t save everyone. I think that instead of responding with my information, I may start providing these tips:

  • Consider what you want out of the relationship

  • Look for a financial planner who works with people like you

  • Find someone with education, credentials, and experience you can verify

  • Understand how they are compensated so you can evaluate conflicts of interest in their recommendations

Now back to regularly scheduled programming…LOL

Nannette Kamien

Nannette Kamien, CFP ®, RICP®, MBA is a financial planner and investment advisor who works with professional women over 40. She helps them with transitions in life and career by organizing their finances, educating them about their choices, and optimizing them specific to their goals. Nannette is located in the greater North County San Diego area and works virtually with clients throughout the country.

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R101 #15 - Non-Financial Retirement Planning