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To be in the herd, or not? December 16, 2008

Posted by shaferfinancial in Uncategorized.
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I have had several excellent conversations with folks who are reviewing my upcoming e-book.  It is interesting that all have acknowledged the correctness of my assertions, but some fall back on the old “most people are too busy or not interested in taking control of their finances.”  I certainly agree with their point, but disagree that it is best to just sell them a product you think is good for them, and hope for the best.  I think that is “business as usual” and what will make most folks have a very poor retirement.  So put me in the “save the world” camp or more succinctly people can learn how to invest wisely and improve their financial lives if they are convinced that is what they need to do.  Its pretty hard to convince folks that they need to take the time and make the effort to become an active investor if the other side is telling them it’s easy, automatic, just buy this product, etc.  That is why I founded the Shafer Wealth Academy and wrote my upcoming e-book to demonstrate to folks the reality of what they are currently doing and give them the opportunity to take control of their financial lives.  Recently, I have had two young men comment about purchasing an EIUL.  A product regular readers know I like.  But, both of these men are in position to create real wealth building plans that will include EIULs, but down the line a little bit.  If they were to buy EIULs now, there will be the temptation to set it up and forget about the rest.  In my opinion you need to create the plan, implement it with the wealth creating parts first, then worry about the tax and inflation issues.

Here is the other issue.  Mass media headlines have created a huge amount of fear around investing.  In this environment it is easy to sell products that have guarantees in them, but those guarantees have huge costs down the line.  Most people don’t understand those costs because they have never created a wealth building plan and looked at their finances through the lens of reality. 

And here is the sad part.  How wealth is created is well documented.  So we know what does and doesn’t work for folks.  Yet, the herd does what we know doesn’t work.  You see there is a huge penalty for not taking the time or having the courage to break from the herd.  Just like fast food, you know it is not good for you, but it is so convenient you go ahead and eat it until there is a huge problem when you step on those scales.  Lately, many people are stepping on those wealth scales and are shocked by what they see.  Once the denial stops, the fear steps in, once that shock is over, some folks will be ready to make some changes, while others will continue to blame others or look to the government to solve the problem.




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