More stoopid financial advice that don’t make no sense

One of the sacred cows in financial planning is “diversification.”

Financial planners will bend over backwards to practically force their clients to adopt such a strategy… even when the client isn’t comfortable with the idea.

Case in point:

An investment firm I know of (which I don’t want to endorse) recently told a client to sell off an investment in a company they (the client) knew a lot about and take that money and…

wait for it…

Invest in a lot of other companies the client knew nothing about.

They call this “diversification.”

Eggs in baskets and whatnot.

It’s stoopid financial advice if you ask me (but no one does because I am not an investment advisor and do not give investment advice).

Anyway, here’s why I’d never do anything like that myself:

Investing in things I don’t know anything (or very little) about is a recipe for disaster.

And…

… makes it VERY easy to lose your entire bankroll and not know why.

Now… should you have 80%, 90%, or more wrapped up into one asset?

Depends.

How well do you really understand that asset?

But this is not a question financial planners routinely ask.

Instead, they are beholden to “the financial planning process” (instead of using their brain)… which dictates that they diversify their clients’ investmnts at all costs.

… even if it means making the client MORE dependent on the advisor and more ignorant about what they’re investing in.

That’s backwards in my modestly humble (but accurate) opinion.

Me?

I shun such tactics.

In fact, I don’t want clients who are needy and dependent.

I want clients who WANT to learn more about simple savings and insurance solutions so their arses are covered before taking investment risk.

I want clients who are interested in learning about (and applying) financial concepts and principles that will keep them out of trouble… even if it means concentrating their wealth in just a few places.

Financial planning be damned.

And if ye be one of those unruly and rebellious people, then you should book an appointment so we can talk about custom life insurance planning.

Here’s the linky:

https://www.monegenix.com/

 

David Lewis

This post brought to you by //The Rogue Agent//. David has been a life insurance agent, and worked with some of the oldest and most respected mutual life insurance companies in the U.S., since 2004. Learn more about him and his business, here.

This post brought to you by //The Rogue Agent//. David has been a life insurance agent, and worked with some of the oldest and most respected mutual life insurance companies in the U.S., since 2004. Learn more about him and his business, here.