September 2023
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The Myth of Wealth Preservation
Every time I hear the phrase "wealth preservation," I can't help but roll my eyes. If I’m being honest, my professional blood boils. Here's why: the investment world is bursting with buzzwords designed to prey on investors' deepest fears while ignoring what they truly need.
Let's dive into a hypothetical. "Wealth preservation" is essentially a siren song for the wealthy, naïve investor. Picture someone with a load of cash, zero investment acumen, and a paralysing fear of ‘losing’ even a single cent.
Now, let's talk about what "money" really means. Most equate money with currency — for example, if you have 10 million golden coins today, you'd expect the same amount when you cash out later, regardless of when that is.
But lurking in the shadows are two silent destroyers: inflation (the slow but steady destruction of your money's worth) and the hidden menace of ‘low returns’ (a risk almost no one talks about). You combat both threats by simply parking that money in a global equity fund. Sure, you'll face the "danger" of market swings (volatility), but history suggests that your pile of golden coins, if left untouched, will grow in the long term. It may even multiply!
Buying into the so-called "wealth preservation" myth is like spoon-feeding clients what they desire, not what they truly require. Why is it that only the affluent seem to hear this tune? Is it the false notion that once they've clinched financial independence, there's no further need to invest? It's one of the many delusions peddled to the rich.
Attempting to safeguard your currency by adopting an inefficient investment strategy, all due to the fear of short-term market fluctuations is nothing short of financial folly. A quick glance at investment trends shows the returns are real and well within reach.
Since none of us possess a crystal ball, we must ensure our clients’ money not only retains its actual value but also thrives, outstripping inflation's incessant drag. Steer clear of "wealth preservation" tactics — they're not worth your time or coin.
📰 Articles & Blogs
How to Coach Investors Through Choice Overload [2 minutes]. How to help clients make better decisions.
How to talk to Prospects and Clients [3 minutes]. Three practical strategies to effectively communicate with prospects and clients.
Bad Timing Cost Fund Investors 17% In Gains The Past Decade [4 minutes]. The costly mistake that cost investors.
Bottom's Up [5 minutes]. Learn how to prioritize your own well-being.
Why "Think It Over" Isn't Effective For Financial Planning Relationships [19 minutes]. How taking a more direct approach can increase the chances of converting prospects into clients.
2,500 Years of Thinking About “How Much is Enough?” [13 minutes]. Uncover valuable insights for finding contentment in today's world.
Intelligent vs. Smart [8 minutes]. The critical distinction between intelligence and smarts and how it can shape your success in life.
🎧 Podcasts
The Email That Wins Clients And Their Trust [25 minutes]. Discover the email that can dramatically improve your conversion ratios
TRAP: We Need To Talk About Fees [88 minutes]. The Trap Pack dives into the contentious topic of fees.
📚 Book Recommendations
A More Beautiful Question: The Power of Inquiry to Spark Breakthrough Ideas by Warren Berger. To get a great answer, you need to ask the perfect question.
🍿 Videos
👏 Encore
24 Things I Believe About Investing [4 minutes]
Do You Have the Courage to Simplify Your Clients’ Portfolios? [4 minutes]
Why A Happy Advisor Is A Good Adviser [4 minutes]
Five Things You Must Stop Doing to Achieve Success [5 minutes]
Why COIs Don’t Refer Business [6 minutes]
Differentiation via Follow-up [4 minutes]
