Been reading some interesting commentary about Cambridge Analytica.
That was the data analytics company that worked on President Trump’s campaign.
So, the story is the company harvested private data from 50 million Facebook users using… Facebook.
Edward Snowden had the most obvious comment of them all in this discussion… “Businesses that make money by collecting and selling detailed records of private lives were once plainly described as “surveillance companies.” Their rebranding as “social media” is the most successful deception since the Department of War became the Department of Defense.”
Kind of reminds me of how most financial planning firms are not primarily in the business of financial planning.
They’re primarily in the business of sales.
The life insurance business, for the most part, is also the same way.
There’s so much focus on sales that financial planning is, more or less, an afterthought or an “add on.”
But… that’s a problemo. A major problemo.
And one that has not gone unnoticed by Yours Gluteny.
Now… there’s nothing inherently wrong with sales. You need to buy financial products at some point.
But… you need a plan before you do.
And this is where lots of advisors put the cart before the horse. They’re more concerned with selling you something than making sure you have a solid plan to get from where you are now to where you need to be.
Which is why we spend a lot of time creating for-real plans for folks before yapping about products.
The very first things you need to know about your finances are:
- How much income you make now.
- How much savings you have right now.
- How much you need.
And then… you can know how much to save for your future.
And then… you know how much insurance you should buy.
Plans based primarily on savings and insurance tend to work out well because they’re guaranteed against loss.
Good for those who can’t afford to lose their savings.
Plans based primarily on investing are not guaranteed at all but are a good idea for people who have savings they can afford to lose.
Moving right along.
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