This week I have had my mind blown to bits, I had to blog about this:
Two conversations are responsible for this, neither of them with me.
First, my wife told me about a conversation she had had with her sister, let’s call her “Joanne”. My wife casually asks Joanne if she new that with the power of compounding she could invest less then $1000 and if it made 8% per month and if she forgot about it for more than 7 years she would be a millionaire. To which she replies, not, “Where could you get that kind of return?” and not, “7 years is a long time.” (Logical reactions) But instead, “Who could possibly afford to invest $800?” -This coming from a woman who spends 4 grand a year on vacations… My mind shattered.
Second, My Dad was talking to a friend of his, told her about Managed accounts and the kind of returns made in his sons (Me) particular program. She scoffed and said that it must be very risky, he explained about it being in her own account, in a brokerage and that she had control to pull the money when ever she wanted, explained about the Fund, it’s low draw down and it’s track history. Nothing he told her made her the least bit interested, not the potentials of compounding, nor the massive cashflow potential and not even what that could do for her retirement, even after she was convinced of the safety. She was a lawyer and flipped houses on the side, she was already of money. Not until he said “look, you could put in a grand and consider you are throwing it away. Then look at it in a few years.” She finally brightened up. “I can throw away a thousand dollars, thats easy, I throw away more in a day at vegas.” She has not stopped calling him since to help her sign up -She is eager… My poor mind “blew a gasket” trying to wrap its wits around that one.
How do you communicate a proven managed account to the lay person, without instant rejection? I have not found a way. Although, people are starting to wonder why I have not worked in 8 months… maybe in another year people will be interested in “how” I am not working.
The Lessons I Learnt:
ONE. Some people are not meant to be wealthy, the same people who complain about debt load and then take a $2000 vacation. Maybe I need to tell them that they could vacation for free (on earnings) every year if they invested!
TWO. Some people become wealthy, by accident, the right connections; good Real Estate broker, market is going up, lottery, intentionally throwing away money… unintentionally, into an incredible opportunities!
And THREE. I can only lead the horse to water. If they do not drink, well, I can’t explain to them why it might be a good idea, evidently, I don’t speak horse.
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