Chattanooga, Guns, & Robo Advisors And Mayhem

Chattanooga, Guns And Robo-Advisors

by: Brendan Magee

Tragically, news of sudden bursts of gun fire and loss of life such as the one that played out in Chattanooga, Tennessee are becoming the norm. Does a day go by any more where this isn't in the headlines? They add fire to the national debate over gun control. Some argue that the government needs to be given more power to step in and take people's guns away from them. Others point to people like Mohammad Youseff Abdulazeez who rained a hail of bullets on two recruiting stations as the reason people need the right to arm and protect themselves. They point out that if U.S. Naval Officer Timothy White did not have his gun to fire at Abdulazeez the tragedy would have been even worse.

So who is right in this debate? The honest answer is that there is merit to what both sides have to say. Most people would agree that it is not in the public's best interests for the police to be outgunned by people who are out to harm citizens. Then again, with all the violence out there be it from would be terrorists, criminals, drugged crazed individuals, a person has the right to defend themselves. The police can't be everywhere.
With either side, there doesn't seem to be any debate about a shortage of guns. There's plenty to go around.

I don't know if it is the gun or the hand that is pulling the trigger that is the issue. A gun in the hands of the right individual can be beneficial. The continent of Europe will tell you guns came in pretty handy in defeating the Nazis. Conversely a gun in the hands of  someone like Abdulazeez hell bent on killing someone can prove lethal. I am wondering if more responsibility needs to be put in the hands of those who are distributing the guns. Are they putting society at greater risk by allowing individuals who do not have the skill or mental make up to safely use a gun? If the person becomes mentally unstable or careless maybe the government should be able to confiscate the gun.

Just as there is an ample supply of guns out there, there is also an ample supply of investment products out there for people to purchase. Just like a gun in the hands of the wrong person, an investment product in the hands of the wrong person can prove life changing. The latest fad of Robo-Financail Advisors is going to put more investment products in the hands of people who are not qualified to be using them.

Usually, when a person buys a gun there is a safety course on how to use the gun, how to store the gun, etc. So there is at least some attempt to prevent a tragedy form happening. With Robo-Advisors, there isn't any hands on supervision. From the comfort of your own computer, an investor answers a few questions and from there the investor is free to invest. Whether or not they understand what they are doing or not isn't much of a consideration. From the investment industry's perspective it enables them to get their products in the hands of the investor quicker and more efficiently. What could be better?

The problem is that just like firing a gun, investment decisions have life changing consequences. For some the idea of owning a gun is an emotional rush. It's empowering. Making investments is also just as emotionally charged. The idea of becoming financially independent or hitting it big can be just as seducing and lethal. Unfortunately, emotionally charged decisions without wisdom usually turn out bad. Just ask the Japanese about Pearl Harbor.

The problem with guns and Robo-Advisors is that once in the hands of the consumer the safety net is gone, and the public needs all the safety nets it can get and so do investors.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. With questions or comments go to www.coachgee.com or call 610-446-4322.