Protecting Your Wealth
Protection is any measure taken to guard a thing against damage caused by outside forces.
Last week, I talked about being liberated from the traditional norms of investing and financial planning. This week I would like to explain what I mean by “Protecting your wealth”.
First, let me start with a story. When I was a young lad, my family had a cabin on a lake in Michigan. During the summers, we would go out to the lake and live there for a few weeks along with my dad’s vacation. One night, my mother and I sat down to play a game called “Tic Tac Toe”. (We had no TV at the lake.) For the first several games, Mom won because I hadn’t learned how to play the game yet. (It was a really long time ago.) Once I learned the “rules” of the game, an amazing thing happened. Nobody won, it was always a tie.
Fast forward into the financial world in which we live, and we find ourselves playing a very serious game of money. Our family and our futures depend on how well we know the rules and play the game. Since the building of our wealth can be “damaged” if we’re playing by one set of rules and the real game is being played by another set of rules by other people in the game all is not well. If both sides are playing the same game, why is it that we have the mortgages and they have the big buildings?
I hope you enjoy the article “Game Theory”. I will expand on this thought next week and, also introduce the Beethoven Principle. We may have some serious rain headed our way this week, but, summer is almost over, and some cooler weather is surely not far behind.