Call Out Bad Money Advice

August 13, 2009 by TFB

If you like this blog, you will probably also like Bad Money Advice. I recently came across it and I really like it.

At times I like to set the records straight on some popular myths in the media: missing the 10 best days in the stock market, 401k loan double taxation, Roth 401k, credit score, and so on. In addition to recommending good books, I also report bad books: Elliott Wave, Magic Formula, Rule #1, Strapped.

Sometimes I feel frustrated because there is so much bad advice out there. I'm also afraid calling out personal finance gurus, journalists, and other bloggers may make me appear smug, aloof, or mean-spirited.

I'm so glad Frank Curmudgeon is out there fighting the battle. He takes the bad money advice head-on. He cross-referenced Suze Orman's 2009 Action Plan with her earlier books. He back-tested Phil Town's Rule #1. He's not a fan of the Latte Factor® (neither am I). He held no punches on other bloggers' goofy posts (I did the same about engine failures).

Well done, Frank, and keep up the good fight! I see some of my readers already beat me to it (SJ, Dave C., Wm Tanksley, …). Check out Bad Money Advice if you haven't.

Should I join the campaign to call out bad money advice or do you think it's a bad form picking on others?

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Comments

8 Comments on Call Out Bad Money Advice

  1. Chuck on August 13, 2009 | permalink
     

    I think it would be a blast.

  2. The Incidental Economist on August 13, 2009 | permalink
     

    I'm not a fan of "correction blogging." A lot of bloggers do it. I think they think it makes them look smart. But if they're smart then they should be able to write something smart not just write how others are dumb.

    A little correction blogging is OK (I do it). A lot is tiresome and a turn-off to me.

  3. Wai Yip Tung on August 13, 2009 | permalink
     

    The #1 bad advice comes into mind is "we are paying so much tax that we should look into buying a house and getting mortgage deduction to lower our tax."

    I think it is great idea to debunk myth and disinformation. But most bad advices come down as a matter of opinion and it is not as clear cut as something that should be debunked.

  4. Mark on August 13, 2009 | permalink
     

    Hi there tfb. I just want to say I enjoy your blog posts. They are thoughtful and helpful and i am glad that you are doing the blog.

  5. Frank Curmudgeon on August 14, 2009 | permalink
     

    Thanks for the encouraging words. I try to be not merely critical, but at least mildly useful, explaining what's wrong with some advice as well as giving what I think the right answer is.

    But big picture, the quality of personal finance advice (particularly non-blog advice) is a serious national problem that isn't going to get any better if we all just play nice.

  6. Uncle Dub on August 14, 2009 | permalink
     

    There can't be enough voices of reason in the blogosphere. You will still be in the minority of those who 'get it'

  7. Dave C. on August 15, 2009 | permalink
     

    I also wonder if there is a correlation between the amount of money these people make by giving this advice, and the ridiculousness of their claims. People may be willing to give crappy advice if it generates a paycheck.

  8. Janet on August 16, 2009 | permalink
     

    Thanks for pointing out this blog it's amusing. I think picking on others is fine, but in limited measure. I'm not sure it fits in with your writing style, enjoyable as it is.

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