For a wide variety of reasons, the big old financial industry starts to gear up this time of year in conjunction with all the retailers trying to sell you things you probably don’t need (if you watch television, you would think that civilization started with the advent of the cellphone that plays MP3’s and you need one much like you need a SIN card). The industry doesn’t hit 2nd or 3rd gear until the RSP season but I have been getting a lot of invitations lately to attend this financial seminar and that financial seminar- buy before year end so you can enjoy your holiday! Its like the financial industry views buying a mutual fund like buying any other holiday gift.

I have a few observations about this year’s selling season:

1. There’s a whole cottage industry now of billionaire who teach you how to do it “their way.” To avoiding having my butt sued off, I will not list names. But the pitch is basically the same- see Mr. or Ms. Money Bags speak on their experiences making billions and they can teach you to become one too for a mere [insert price here]. The organizer gets a cut of any materials purchased that night (usually 20%-33%) and the products the billionaires push have really good commissions paid to them- which is never disclosed to you. Some of these programs are great and some are not. But, to paraphrase someone who once put one of these on, leave your cheque book at home and think about it. The “seminar show special” will be available at some other point in time.
2. Skip the product and master the strategy first. As I wrote in my last post, my mistake is I started following the shiny lights (i.e. sexy products) rather than come up with a prudent and sensible strategy first and then find product to buy. Start with reading some books- reading allows you to mull things over in quiet space. Canadian Capitalist lists some good personal financial resources.
3. Before you go to anything, sit down and plan out your cash flow. It makes no sense to purchase any financial product-mutual fund, real estate, insurance- without making sure you can pay the holiday bills and the rent/mortgage afterwards.

This post is part of Canadian Money Advisors’ Canadian Tour of Personal Finance Blogs. Check out the rest of the posts.