Advice From Financial Entertainers.

I was recently discussing financial matters...specifically taxes & debt with a client.

He mentioned to me he was listening to one of these well-known-give-you-financial-advice radio shows.
I call these folks financial entertainers. You know Suze and Dave and Clark and so on.

They get paid a lot of money to espouse to the general population financial advice.

I find this to be an amazing talent to be able to give people advice about their finances within the same time it takes me to set an appointment with my clients and prospective clients. Actually I find it financially dangerous!
The advice given on this day was a bit troublesome:  The caller had a $240K mortgage on his house. He had just inherited $300K.

Well Mr. financial genius told him to pay off the house and be debt free. There are several things that should have been examined here.  On the face of it, he just gave away his largest tax deduction.  Anyone who knows & understands money (the banks for instance) would know that if he had simply put the money into an indexed type of account growing tax deferred he could have paid that house off anytime.  Anyone ever heard of compounding on large dollars!!! Not to mention the missed opportunity to have use & control of his money.  By forking over $240,000 to the bank to be "debt free" he would have a paid up house, losing his tax deduction and the opportunity cost on this money.  Come into my office and run the calculations for yourself.   

Financial Entertainers should consider dancing with the stars. 
Brian Zeek