"Good investment decisions can only be made in the perspective of something larger. ... We all want to take a plane, train, or automobile, but we have no idea where we're going."
-- Carl Richards
I totally get it. Facebook
But the problem is that for most people, it doesn't make any sense for them to be talking about Facebook as an investment. Facebook and its raucous IPO haven't just been a distraction, they've been a dangerous distraction. As I pointed out in The Motley Fool's special report on financial advisors, most people are still at Square One when it comes to saving for retirement:
According to research from industry watchdog FINRA, overlooking planning isn't unusual. Among non-retired households, 58% haven't tried to figure out what they need to save for retirement.
That is scary.
The problem is that -- as Carl Richards wisely points out -- investors aren't taking the time to figure out the answers to important questions like:
- What do I want my retirement to look like?
- How much do I need saved for that retirement?
- What level of investment risk am I comfortable with?
- Based on number of years before retirement, what should my asset allocation be?
Instead, they're busy debating whether they should be buying the Facebook IPO or if Apple
So seriously, if you don't have the big investment questions answered yet, take a deep breath, close this window and any other Facebook-related windows, and put your stock-buying decisions on hold until the important work is done.
And if you are considering outside help from a financial advisor, be sure to check out The Motley Fool's special report on advisors to learn what to look for and what to avoid in the sometimes-wild world of financial advice.