5
MISTAKES YOUR FINANCIAL ADVISOR
IS MAKING AND THE QUESTIONS
THEY
DREAD HAVING YOU ASK
By Samuel N. Asare
The Common-Sense Approach to Wealth Building
© 2011 by Laser Financial Group, LC
Smashwords Edition
Smashwords Edition, License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be resold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
TABLE OF CONTENTS
Distinguishing between Financial Truth and FACTS
Why You Shouldn’t Want to be Financially Popular
2 Common and Unassuming (but Lethal) Mindsets that Will Impact Your
MISTAKE #1: Lower Retirement Income Will Result in Lower Taxes
MISTAKE #2: Paying Off Your Mortgage Quickly Is Always Financially Savvy
MISTAKE #3: The Stock Market Is the Best Place for Long-Term Wealth Accumulation
MISTAKE #5: Investments with the Highest Returns Will Produce the Most Income
5 Questions You’ve Probably Thought About (or Might Consider Later)
Additional Works by Samuel N. Asare
Dear Retirement Investor —
Thank you for purchasing the e-version of my book. You must already see some value in reading this book, but I’d like to take a moment to briefly share with you my motivations for writing it.
Almost every person dreams of retiring comfortably one day. And in anticipation of those golden years, people often hire financial professionals for their expertise. However, have you noticed that the overwhelming majority of retirees in this country end up extremely disappointed (financially speaking) when their retirements finally dawn?
Having been a practicing financial professional for many years, I maintain that the reason for this unfortunate dilemma is that these investors follow well-meaning, conventional advice which actually amounts to little more than complete myths.
Notice, I’m in no way suggesting that the information you (or any investor) received from your financial professional(s) is immoral or illegal. However, this book will prove to you that most of what many retirement investors have come to know and believe as sound financial principles are anything but sound. In fact, as it relates to the five areas that this book covers, I wholeheartedly agree with the late Will Rogers’ statement:
The problem in America isn’t so much what people don’t know; the problem is what people think they know that just ain’t so.
You can make your own call after you finish reading this book.
To that end, I encourage you to carefully review the material I have presented with an open mind, setting your emotions completely aside.
I believe that irrespective of where you are on the retirement planning spectrum — even if you’re already retired — the facts you are about to discover in these pages will help you avoid the myths that have plagued so many retirees with an inadvertent cycle of poverty, so that you can join the growing group of smart investors who are keeping their investments where they belong — in YOUR control.
I’d like to particularly direct your attention to what I have named the Eyeball-to-Eyeball Questions. These are questions for you to pose directly to your current financial professional(s), or those you might encounter in the future who challenge the claims you will learn in this book. As you’ll notice, these are very simple, straight-forward questions and therefore should require equally simple, straight-forward responses. Ideally, I’d recommend that you pose the questions in a face-to-face meeting — that way you can observe your advisor’s nonverbal communication, in addition to the words he or she uses to respond.
My sincere goal is to ensure that you, as an investor, receive the best possible guidance in your quest for a comfortable retirement, a goal that should in no way, shape, or form conflict with those of any other financial professional, should it? So don’t allow ANYONE to dismiss these very simple questions, and be very wary of anyone who does.
I wrote this book for educational and informational purposes only. It is not intended to provide you legal, tax, or investment advice. The concepts and strategies I discuss herein are based on a general understanding of federal tax laws as they exist today. You will notice that I use many hypothetical examples to illustrate various concepts.
I am fully aware that your particular set of circumstances may be different. In fact, I’m almost certain that they are. Therefore it is imperative that you consult with properly trained, licensed, and honest professionals who can help you implement these principles to the extent that they may specifically benefit you.
I welcome any comments or questions you may have. You can reach me by calling 877.656.9111, e-mailing Info@LaserFG.com, visiting LaserFG.com, or connecting at Facebook.com/LaserFG. You may also reach me via Twitter.com/LaserFG or Linkedin.com/in/LaserFG.
Now, buckle up and enjoy the ride!
Happy retirement,
Samuel
DISTINGUISHING BETWEEN FINANCIAL TRUTH AND FACTS
One of my working theories is that nothing is really ever false, in the real sense of the word. Just think about the last time you had a passionate discussion (a.k.a. an argument) with someone who had an opposing view. Regardless of the subject at hand, both of you claimed to be right — and needless to say, each of you believed that the other party was terribly mistaken.
Ever heard the sayings, “Beauty lies in the eye of the beholder” or “One man’s meat is another man’s poison”? I believe these truisms to be accurate and right on point, because each of us has the right (yes, the full and absolute right) to define our own truths. In other words, what I’m saying here is that, we may each believe whatever we so choose.
That’s why you often hear and/or see two or more competing manufacturers or service providers, each claiming to be ranked #1 in the exact same category. Haven’t you noticed how every cell phone carrier is ranked “#1 in call clarity and coverage area,” and every cable television provider has “the largest number of HD channels”? How about the way every politician is right (and their opponent is wrong)?
Although we all know it’s not humanly possible, I’m sure everyone can prove “their truth.” But does that, however, mean that “our truth” is fact? Of course, not! The important — and awesome — thing here is that, when it comes to facts, this rule is exactly the opposite: no one gets to define their own facts! I mean, you can walk all the way to the moon and back, but you still will NOT be able to redefine or tweak a fact in any way, shape, or form. Thank goodness!
This theory is what has kept me sane over my years as a financial professional. I don’t know enough about other areas, but based on the evidence I’ve seen in the financial world, I’m tempted to say that no other field has so many folks (including some of the very professionals who are supposed to know better) spouting “truths” as if they were absolute facts. All you need to do to see this in action is simply do an Internet search on just about any given personal finance subject. More likely than not, you will end up confused or much more confused, regardless of your financial IQ.
In the end, I believe that your success as an investor all boils down to being able to separate the two. You see, if someone is giving you their opinion on a particular subject, you need to know that — so that you don’t misconstrue it for fact, and vice versa.
Okay now I have a confession to make: I’m extremely biased, in the sense that I am 100 percent anti-opinion when it comes to matters of personal finance. That’s why each of the five areas I cover in this book is based on absolute facts. Beware though, because these facts may be completely counter to the opinions you might have heard (and even based your financial plans upon) up until this point. But I hold consolation in the fact that you, like most folks, are smart!
