One of the best pieces of advice that I have taken was from a friend. He (is/was) a very successful investment dealer with his own company in Saskatoon, Saskatchewan. He urged me at one point in time to enter the industry from my days selling life insurance, and mutual funds. I became a stock broker, and my world continued to change from those days onward.
Any rate, Ron (not his real name) and I were walking with another stock broker and Ron turned to me and said "you know, Brad, you have one important item which will likely make you more successful then me". Now, that was a real turn of events. He had a swank office on the River in Saskatoon, and I was working out of my basement in Aberdeen, Saskatchewan at the end of two unmarked dirt roads. What would I have over Ron?
"You have only had one wife."
Simple.
Ron said, "I threw away my first million to my first wife. I have child support payments and spousal support payments, plus I am married with my new wife and daughter. In spite of everything I do, to cut costs in my world, I still can't cut costs there. In fact, if I make more, I am likely to have my payments adjusted for my ex."
One wife...can save you a million.
I pondered this, and in fact, this is not really true. A million is a bit low. By being married one time to the right person will save you no end of trouble. There is this economic benefit, but there is also great strain for a man and woman relationally if they do not "marry well". A good wife will help you as you make important decisions. They can encourage you when you need it. They can urge you to do better when you need it. Marriage is rarely perfect and marriages are often a mystery within every home. Some marriages are a "business relationship". Some marriages are very intensely emotionally connected. People will have their own dynamics, but certainly there is something said to "marrying well". I would love to write more about this, but it is a bit outside the scope of this blog, but think about it. It could save you a million. -Brad
Just as a side note: the other stock broker we were with, did not heed this counsel. He burried himself in his business success and now runs a very successful office (or so, he told me) unfortunately he also lost his loving wife and children. They were sacrificed for the 'cause'. A sad conclusion for a intensely spiritual Christian husband. It still makes me sad.
Wednesday, November 18, 2009
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I guess, I posted that item without an action step. The best action step today would be to pay off everything...ASAP. This is good advice in any market, but with the low interest rates, it makes nothing but sense. If we have significant extra assets, then some can be used to buy precious metals. My historical recommendation has generally not been more then 10%. To be honest, I tell people they can throw 10% at anything they want (a favourite stock, a risky company, whatever). If they win, great, if they lose then they haven't lost the farm. Financial planners always recommend diversification. It still makes sense. Generally, I recommended much less then that in precious metals, but I do understand that we are in different times, and that 10% could be an important piece of anyone's financial puzzle. Good day, Brad
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