Every now and then, someone will call me up on the teley or shoot me an email and ask for advice.
And every once in awhile, someone will ask me about some new-fangled investment… like investing in shipping containers or some arcane forex strategy or some new stock options strategy they just learnt.
Now… none of these things is bad or stupid. Fact is… it’s these kins of “out there” ideas that have made millionaires and, in some cases, billionaires.
But… people who have made such fortunes rarely asked a financial advisor about the profitability of such things. They did their own research and then acted accordingly.
So… why have a financial advisor?
To facilitate the cash flow needed for these kinds of adventures.
To facilitate the transaction (the buying and selling of assets you need).
To help clients better manage money and risk.
Whether it’s a new business idea… or an up-and-coming IPO…
You need moolah. And, usually, a lot of it.
At the same time… you DON’T want excessive risk.
And this is where I see people falling down.
They are terrible risk managers.
Even rich people.
Having money doesn’t prevent you from losing it all… or being terrible at managing the inherent risks that come with having lotsa cashola.
You’ve heard of “from rags to riches”?
Google “from riches to rags”.
There are at least as many stories of people being knocked off their throne and never coming back.
Good, decent, honest people.
People who DESERVED to keep their wealth… but for a couple of catastrophic mistakes… mistakes they made YEARS before that never fully matured until it was too late.
Little hinges swing big doors… and they can swing them in either direction.
And this is precisely what insurance is for… managing those risks, cash flows, and savings.
… so you can take the kinds of risks you want (or need) to take… without losing your shirt.
Look, most advisors don’t really understand that this is their role in life… and so they build these crazy models that they pretend can predict the future.
Which is fine…
We’re all out there in the ether making a living.
I prefer to build (and maintain) the foundation and let my clients build the house (and some of them build AMAZING financial structures with the tools I give them).
So… if that kind of approach appeals to you, then come into my life insurance fold and let me give you a taste of the Monegenix medicine: