Wealth & Wisdom Series
Its Time To Talk
There is a growing group of professionals across the country who are deeply concerned about the direction we are heading, and the impact it will have on everyone's financial future.
In the past ten years, what if anything has the financial services industry done to improve your financial life?
We are all looking for answers and solutions in our financial lives. Many times our financial problems have a solutions, but the solution maybe also have a problem. What you must understand is that traditional financial thinking grossly underestimates the impact of economic trends and shifts when estimating future results.
IN TRADITIONAL THINKING – HOW CAN YOU BE AWARE OF SOMETHING THAT YOU'RE NOT AWARE OF?
Sometimes I wonder – does traditional thinking feed the problem, or solve the problems you face in the future? The reality is, the decisions you make in your everyday economic life are influenced by five elements:
- RISK – The risk you feel you must take in trying to get ahead financially.
- TAXES – The money you must give away.
- PENALTIES – The rules and regulations that impact your money.
- INFLATION – The cost of goods and services constantly increasing.
- DEPRECIATION – The value and future buying power of your money going down.
The financial services industry comes along and tells you to solve these problems all you need is:
- Balanced Portfolios
- Retirement Programs
- Financial or Bank Products
But, let me ask you one question ...
Does an IRA or 401k solve the problems of risks, taxes, penalties, inflation, or the value of a dollar?
Does a bank CD or purchasing stock or investment portfolios solve these problems? NO.
THIS IS IMPORTANT
You must understand that when a financial product is designed, inside that product there is no assurance of success. What will determine the future success of that product are the economic trends and shits that surround that product at the time. Economic trends and shifts are dramatically impacted by the actions of the federal governments.
It is the actions of the government that will directly impact your everyday economics of risk, taxes, penalties, inflation and depreciation. Unfortunately, traditional thinking spends most of its time discussing the product solution while ignoring the economic trends and shifts that could impact that product.
Economic trends and shifts will dramatically impact future financial results.
So the question remains ...
How can anyone make a financial decision or recommendation without understanding what will impact future results the most?
Knowledge is something you learn. Wisdom is the ability to apply that knowledge to your everyday life.