Today’s Mission:
The term “fake news” has become synonymous with the political climate of the past few years. But the phenomenon has spread to other parts of our culture as well. What about fake news in the financial space? We’ll look at some recent news headlines to see if they qualify to be labeled as “fake news”.
[spp-player url=https://yourfinancialmission.podbean.com/mf/play/5dwhur/PODCAST_069_-_FINANCIAL_FAKE_NEWS_-_J_NEANNE_THEUS.mp3]
(Click the featured times below to jump forward in the episode)
Strategy Points:
2:00 In the News: Brexit
- Will Brexit impact our economy in the U.S.?
- J’Neanne shares a few reasons why people are in favor of Brexit.
- You might get a spike up or down in the market, but the decisions will pan out and likely not affect the U.S. economy significantly.
7:15 What is fake news?
- It’s easy to use hyperbolic language to create a sense of fear.
- The news makes you move, one way or another.
8:40 “Social Security going broke!”
- Somewhat true in that it will be insolvent by 2035. Congress will have to find a way to continue benefits.
- With more people taking Social Security distributions, it is draining the fund more than ever before.
- But when you build up an economy where people are paying taxes, that’ll help replenish the Social Security fund.
10:31 “Buy gold now!”
- The news claims the dollar will crash and gold will rise in value.
- You should ask, how does the rate of gold get established?
- Right now, our dollar is stronger than ever with a stable government and economy compared to the rest of the world.
12:58 “Nursing home costs poised to bankrupt millions of Americans”
- Nursing home costs are indeed going up.
- As a culture we have begun outsourcing care and there isn’t a huge supply.
- It won’t bankrupt people, but you will spend down assets faster.
- If you don’t have the money, then you will be in a Medicaid home.
16:05 “Market crash–coming soon!”
- How do you define soon?
- Market crashes can happen from a number of things, but it’s hard to actually predict a market crash.
- Even weather can impact the market, be it flooding or hurricanes or tornadoes.
19:24 Additional fake news headlines
- Be careful about what is being sold.
- Maryland just suffered its largest ponzi scheme.
- You need to see documentation to not get sucked into a scam.
- You have to be careful on the sites that you frequent, there is a lot of clickbait and also sponsored posts with hidden agendas.
23:15 Getting To Know You: Big trouble
- J’Neanne had some fun as a teenager when she lived on base but got pretty scared when she got caught riding a Suzuki 90 without a license.
26:33 Mailbag: Buying a new car
- Bradley says his wife just totaled their car. They would need about $30,000 to get a new one, but they only keep $1,000 in the bank. Should they get the money from their IRA and pay taxes? Or use after tax money and pay capital gains?
- First, who was at fault? Insurance should cover some of it.
- You can get a car loan if you have to get a car right away.
- Try to buy a new-used car and then pay the loan down with the insurance money. It’s a bad idea to go into the IRA unless it’s a real emergency.
The Grand Plan:
[spp-tweet tweet=”Fake news: It’s a marketing tactic, a political tactic, a way to persuade people. There’s a sliver of truth to get you to go along with these headlines. – Your Financial Mission”]
The Spy Kit:
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More Intel:
The host: J’Neanne Theus – Contact – Call: (443) 718-6310
