I am in need of a new sofa. So, one lazy Sunday afternoon, on my way from the day spa, I conveniently stopped by a popular retail furniture store. As soon as I walked in, I was approached by Olivia, a saleswoman with a hard sell approach. I am no stranger to hard sells, so I accepted my fate and allowed Olivia to do her ritualistic performance. As we meandered through the store, I was surprised to see a sofa that I liked.
So, now we are suddenly at the haggling stage…
After some time, Olivia and I settled upon a price, but of course, she had to discuss the price with her manager, Barry. So, away she went. And, I waited. When Barry finally arrived, he introduced himself and began to ask me about my interest in the sofa and how he could get me to buy that day. I explained to him that Olivia and I had discussed a price, and all we needed was his approval.
Instead of deciding whether to approve or disapprove, Barry did something I was not expecting…he asked me what I did for a living. (Is it obvious yet that I have not bought furniture at a retail furniture store in a very long time?) Although I was not expecting this question, I knew the purpose behind it. See, because I had just come from the spa, I was dressed casually comfortable with a hoodie over my head. This casual look didn’t provide Barry with enough cues as to how much I could afford (hint: how much he could try to get me to spend). So, although, I did not feel obligated to respond, I quickly stated, “I am in finance.” And, this is when it happened. Barry went on and on about how he’d rather go to the casino than trust his money to the stock market. I have heard this reasoning before, so I made various inquiries of Barry. And now, I pose the same questions to you:
Would you really rather invest your money in the casino when it is common knowledge that “the house always wins?” Would you really rather invest your money in the casino when millions of people have a 401(k) or other retirement accounts than invest in the stock market? Are you saying you have no faith in your retirement account?