Title:

The chaos of investing

Date:

Tuesday, May 24th, 2022

Domain:

BUSINESS

Life lesson:

You get what you pay for.

Core idea:

I am concerned that people may not invest because of the complexity of choosing what and where to invest and deciding to do nothing or make irreversible mistakes.

Fact #1:

WHICH WAY DO I GO?

Discuss why investors are confused with too many investment options

Too many places to invest

Too many investment tools

This leads to chaos and complexity.

People settle for an inferior offering because researching the investment landscape is too complicated.

Obstacle:

Settling for the least expensive option.

Strike:

Get help from an advisor who has a legal obligation to educate you on the industry to hit quarterly revenue targets for their company.

Fact #2:

THE PITCH: LOW-COST ELITE VALUE=LIE

Explain why the bill for cheap always comes later.

Nutrition is a good example.

One fast-food meal a day may seem insignificant.

But, one fast-food meal a day over 365 days will lead to consequences.

It was just one meal a day. Cheap and convenient.

You have to miss work and risk damaging your credit due to medical bills and mounting debt.

Obstacle:

The sales pitches for cheap are getting better and better.

Strike:

Remember: Cost is the absence of value. Don't expect high value if you are paying the bottom dollar.

Fact #3:

MEASURE TWICE, CUT ONCE

Don't buy the prescription without going through the exams.

Here is where the cheap and free firms thrive.

They get you in with the low-cost cheap option.

They make you pay dearly for the free entrance.

It's similar to the gambler who said he got a free buffet at a casino and lost 5k gambling.

Obstacle:

Falling for the price comparison game and entering into a destructive arrangement.

Strike:

Remember what's at stake. Don't discount your financial security and your future. Hire right the first time.

Fact #4:

CAN'T SEE THE FOREST FOR THE TREES

Shoot for a win/win relationship

Remember, businesses have expenses

Trying to discount your financial advisor is like negotiating with an anesthesiologist to lower your fees.

It's not a good idea.

If you want a good product/service and receive a good product or service and want that company to stay around, you will have to pay what they are worth.

Obstacle:

The forest is an investor's financial security/goals. The tree is the cost.

Strike:

Failing to see the advisor-client relationship as a relationship.

Revelation:

Cost is a problem in the absence of value. Advisors will go above and beyond for those who value their work.

Action:

shoot podcast