The Springfield Paper | Misguided Wisdom: The Money Matrix

Friday, 18 May 2012

Misguided Wisdom: The Money Matrix

WRITTEN_BY Steve Temple
Wednesday, 25 August 2010 09:37
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In this next series, this will possibly be the lengthiest column we will share thus far; however it could prove to be the most valuable. I will conclude this series by identifying the characteristics of the ideal investment and/or savings strategy.

I was on a flight recently and the gentleman next to me who appeared to be in his late fifties asked me what I did for a living. I explained to him that I was a financial advisor and more importantly I teach principles on how money works for people in their specific situation. He replied “what exactly does that mean”. I responded by asking him a question. ‘Given a choice when you access your money you have saved for retirement; from the three options, I want you to pick one. Would you rather pay ordinary income tax on the money as you receive it, capital gains tax or receive the money tax free”? He replied “well that is silly; I definitely would rather receive the money tax free.

I responded to him by saying, when you look at where you have saved your money for retirement and from all sources of information whether you work with a financial advisor, the media etc, is the distribution of these funds providing you with the income scenario you just told me you desired? “No, in fact it is not, wow I never thought of things in this manner, I just did what everyone else was doing, was his reply.

My comment to him: “Precisely, this is why I teach financial and economic principles pertaining to money and how it works.

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