TRAIN2INVEST is North America’s leading investment education and training corporation. The Corporation’s purpose is to provide a new way (i.e. a paradigm shift) where families; individuals and communities think about wealth management. TRAIN2INVEST achieves this through teaching, training and coaching individuals in the art and science of self-directed investing with the foundation based on capital preservation. TRAIN2INVEST offers a complete education and training experience focusing on fundamental and technical analysis; risk analysis and management; and developing skills of execution for virtually any trading situation. Empowering families to begin a journey of building their inheritance for the next generation through investment education.
Since 2004, TRAIN2INVEST has trained – stock market education- thousands of families across Canada.
The TRAIN2INVEST program is a complete solution that removes the FEAR associated with stock investing which paralyzes most individuals. Given this preconceived fear, they abdicate the management of their hard-earned savings to the ‘experts’ who legally rob them i.e. these ‘experts’ receive their fees regardless of their fund’s performance. The reason we get or allow ourselves to be robbed is because of FEAR ( a fear that has been masterfully created by the financial services industry). Individuals learn at their own pace – no two individuals learn the same way or at the same pace. The next generation will develop a skill set that has never been taught at college or university.
The TRAIN2INVEST program is a comprehensive learning process designed to radically change the concept of wealth management for the individual family – you no longer have to be ‘afraid’ of buying and selling shares !
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Our course requires NO prior knowledge of the stock market or investments.
What you need to bring to the table is
- A desire to SUCCEED!
- To be TEACHABLE
- To do the necessary DUE DELIGENCE
Information Age paradigms DO NOT WORK in an Artificial Intelligence Age
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Stock Trading: From using expensive brokers to Discount Brokers
Most people recognize the need to save money. Typically, the approach is to ‘save now’ for retirement. The problem is that saving money and investing money are two very different things. Although all of us would love to achieve great returns on our investments – often, we end up with something far below our expectations and more importantly, below our needs.
What then is the problem? … the strategies we implement do not fit the desired plan for our savings 
The Educational Investment Program
The
Train2Invest Program
The
Train2Invest Program
The
Stock Market: An Untold Story
The
Stock Market: An Untold Story
TRAIN2INVEST IS Building A Family
Join Our Family INVEST FOR YOURSELF, BUT NOT BY YOURSELF
We are here to COACH, MENTOR & GUIDE YOU!
The TRAIN2INVEST investment education program:
Did we learn about managing wealth:
The heart of this program consists of an internally generated methodology that is world class – dedicated to helping novice investors master the entire stock investing trading process:
- The Psychology of trading
- Strategic Wealth Management
- Fundamental & Technical Analyses
- The Impact of Globalization; Trade Wars & Tariffs
- Trading Mechanics: The Buy Price; The Sell Price & The Stop Loss Price
It is therefore aimed at providing an unmatched skill transfer through teaching; guidance through mentoring and coaching; and aggregated information through analysis to help our students implement sound investing strategies on their overall portfolio that will differentiate them from the typical cookie-cutter BUY & HOLD investor philosophy.
Change that strategy and you can change the results!
CAPITAL PRESERVATION and WEALTH ACCUMULATION is the cornerstone of the TRAIN2INVEST program.
The course has been designed that DOES NOT require a PhD in finance or higher math……. a complex subject is broken down to bite-sized pieces. Realizing that no two people study/understand concepts the same way, it is structured in such a way that each individual studies at their own pace!
That’s why we TEACH…TRAIN…COACH:
You have a TEACHER – who teaches you the methodology
You have a TRAINER– who helps you with any difficult areas that you face
You have a COACH – who encourages you when you need it
You are NOT alone!
Invest for yourself BUT not by yourself!
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The Program
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The Stock Market: An Untold Story
The Myths About Stock Trading. For many individuals, any discussion on the stock market brings fear and doubt.
The Train2Invest Program
Forget the ancient strategies of BUY & HOLD! Think: RIM; Nortel; Eton; Jetsgo; Target Canada etc.
Why Choose Train2Invest Inc?
“Teach a man to fish….” principle. Once you learn how, you don’t need to depend on others. Nobody cares about your money more than you. It’s the last thing you should delegate to others! Train2Invest has been around since 2004 and has trained thousands upon thousands of families & individuals. Nobody teaches you how to become wealthy through investing in the stock market – every teaching institution (universities & colleges), teach to work for someone else. Read the testimonies – the evidence demands a verdict!
Are you afraid? Don’t be. We have coaches & mentors to help you. Would you make mistakes? Sure, who doesn’t? Will you lose all your savings? Absolutely not. We have strategies that focuses on Capital Preservation.
Education is the answer – no one can take your knowledge away. Call us 204-414-9106 and we can discuss your needs; your fears; your questions etc. If you don’t call, you will NEVER know!
The TRAIN2INVEST Program
The Train2invest Program
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The TRAIN2INVEST Program
Re-Inventing Wealth Management with a New Paradigm
Forget the ancient strategies of BUY & HOLD!
Think RIM; Nortel; Eton; Jetsgo; Target Canada etc. – a whole bunch of people are holding on to a whole lot of worthless paper!
Here’s a novel concept: Take small profits at shorter intervals!
How about taking 1% within 14 days? Approximately 30% per year on a compounded basis!
What does your headspace say to the above statement?
Can’t be done!
Why? The ‘experts’ couldn’t do it, so a novice can’t.
Maybe there is a reason why the experts want you to think that?
REMEMBER – Freedom 55: Guess what? Your financial planner retired at 55 on the fees you GAVE him!
INFORMATION AGE Thinking Will Not Work In The
ARTFICIAL INTELLIGENCE AGE !
CHALLENGES WITH THE CURRENT SITUATION
Many individuals who are very successful at their careers or at running their business remain intimidated at the thought of managing their own investments. They feel inadequate in their ability to understand what is required and subsequently rely almost solely on “experts” to make the decisions for them. Even though most people are highly capable of making informed, intelligent choices, they abdicate their most important resource (hard earned savings and investments) to third parties who may not share the same goals as the individual/family. By only following the advice of traditional investing philosophies (some of which may be outdated), they limit the growth of their portfolios to industry averages.
Even though the markets have changed significantly over the past 30 years, most people have not changed the way their money is put to work.
In addition, traditional investing methodologies often times have significant fees associated with them and most investors do not know that these fees have a huge impact on the growth of their portfolios. The returns they receive are usually mediocre at best and quite costly at worst resulting in real challenges for families as they age towards retirement.
At TRAIN2INVEST we focus on changing that inherited mindset by teaching people to follow a strategy and philosophy that produces sound results and by building their confidence through action. By giving people a choice in how they invest their money, we are enabling them to take a portion of their portfolio and, through their self-directed efforts, build a legacy of wealth and knowledge for their future and their children’s future.
THE CONCEPT: Aspects of Investing
To become a successful self-directed investor means understanding three main aspects of investing. These include:
By teaching Fundamental, Technical and Emotional analysis within our program, we maintain a high success rate through the establishment of sound investing principles.
THE EDUCATION PROCESS
When it comes to the management of investments, you don’t need a PhD in finance or economics to consider taking on this responsibility. The skill-set of investing, just like any other skill-set we learn, can be successfully attained through education, practice and ongoing improvement over a period of time. No one expects you to be an “expert” in a weekend.
TRAIN2INVEST was founded on the concept of providing a superior financial and investment education through a ‘STUDENT-CENTERED’ approach. The student’s success is our number one priority.
Delivering a step-by-step learning process that breaks down complex subject matter into manageable, bitesize pieces of information.
The TRAIN2INVEST program is a comprehensive 6-month hands-on learning and mentoring experience with the option of ongoing coaching and support as determined by the student. The time factor is important because we cannot change old habits or develop new ones with any degree of success within a few weeks. The TEACH, TRAIN, and COACH approach delivers complex issues in bite-sized modules eliminating information overload and targeting critical information analysis for decision making.
ONE SIZE does not fit all. We recognise that different people learn at a different pace (A Novel Concept?)
The structure is important because most people cannot just read books and apply this new-found knowledge. We follow a complete step-by-step learning process supported by knowledgeable coaches and mentors so each student can confidently learn, practice and develop the necessary skills required to manage their investments. We focus on the principles of capital preservation, sound money management and reducing risk through knowledge.
All of our education is delivered online and our students participate in a virtual classroom environment in real-time. All of the education is instructor-led and we encourage interactivity. This geographic independent delivery method provides accessibility to anyone who has high speed internet and eliminates the need to travel to get knowledge.
Knowing that most people lead busy lives, we have structured the classes in a manner that provides flexibility for most schedules. Classes are delivered weekly with some requirement for homework and practice in between. Obviously, any success comes with some personal effort and therefore it is important to allocate appropriate time to develop the necessary investing skills. Through our integrated approach, our students gain the knowledge and techniques required to achieve financial independence and build long-term, sustainable wealth.
THE TRAIN2INVEST PROGRAM – INVESTMENT EDUCATION
Our philosophy is simple.
“……. small consistent gains following a strategic investing plan.”
We believe our training strategy will enable anyone to learn about wealth accumulation and money management. They will have obtained skills through a curriculum of hands-on training that can be applied in real-world situations. Through a systematic progression of teaching, training, coaching and mentoring, students acquire higher levels of wealth intelligence that they can use to improve the quality of their lives. Naturally the education gives anyone the potential to generate both cash flow and capital growth, but this potential can only be transformed into real wealth through motivation and discipline.
The model is based on conveying a simple and proven approach of attaining small gains (1%) within a targeted time frame (14 days) to achieve a specific return on invested capital within a year (15% to 30% on a compounded basis).
Since most people look at investing from a long-term buy and hold perspective, it is difficult for them to grasp these rates of return.
However, with the application of a new philosophy (shorten the hold cycle and be satisfied with a smaller gain every time) we can change the way people make decisions and subsequently build wealth.
The program is about investing in solid, blue-chip companies (a portfolio) by trading their individual shares.
Synopsis:
Students learn how to analyze sectors and companies, how to establish trading ranges, when to buy their shares, how to monitor their positions, how to protect their capital and how to sell their shares for profit.
IT ALL BEGINS WITH A VISION
VISION is the ability to think about or plan the future with imagination and wisdom!
If you consider that the definition of a vision is “An image of the future we seek to create”, then from an Investing/Trading perspective, the vision statement is a description of what you ideally want to accomplish within a given time horizon.
TRAIN2INVEST places a high priority on our students having the right vision to be successful.
Words have power. When you don’t have that clear long-term goal written down, you become reactive to life and situations rather than being proactive. Most of us only think of immediate and short-term objectives when we are deciding. But we all know that a person who succeeds is the person who keeps a focus on the future.
It is easy for all of us to get lost in the mundane activities of our daily life. A vision statement provides that hope for a better future. It also gives meaning to certain activities we indulge in. These, at first, might seem pointless but if you have a vision statement you can see the value they add in the long term.
What most people lack when it comes to investing is a series of goals that support their vision.
To use the acronym S.M.A.R.T., these goals must be:
S Specific
M Measurable
R Realistic
A Achievable
T Time Bound
We work with you to create a VISION statement that meets your family’s vision, not the vision of some ‘Expert’!
THE CURRICULUM: 3 Phases
- Phase 1: The Teaching Sessions
- Phase 2: The Training Sessions
- Phase 3: The Coaching & Mentoring Sessions
Phase 1: The Teaching Sessions (Lectures)
These sessions focus on building your foundational knowledge of the markets and decision-making process. It consists of an overview of the stock market followed by 10 weeks of online education with a class delivered once per week on a pre-scheduled time-slot. Each class is a unique teaching session (approximately 1 hour per session per week) that builds on the previous weeks knowledge and utilizes current market conditions to support the goal of the lesson.
Each of these sessions are recorded ensuring that all of our students have opportunity to understand and progress even if they miss a class due to outside circumstances i.e. if you miss a class, you can listen to the recorded session at your convenience!
The purpose of PHASE 1 is to establish the process of critical thinking such that an individual can approach a decision with confidence and knowledge. We cover both fundamental and technical details for a well-rounded view of the markets. Lessons include but are not limited to:
Fundamental Analysis (FA)
- Module 1: Financial Excellence
- Module 2: Globalization & Economics
- Module 3: Sector Analysis
- Module 4: Financial Statement Analysis
- Module 5: Portfolio Analysis
Technical Analysis (TA)
- Module 1: Support & Resistance
- Module 2: Technical Indicators
- Module 3: Advanced Technical Analysis
- Module 4: Risk Management
- Module 5: Emotional Analysis
During PHASE 1 the students will learn to:
- Understand the basic components of trading shares and be able to perform this function readily in various market conditions
- Understand how risk is a component of trading and investing
- Research organizations and establish criteria in selecting which organizations to invest in
- Understand the dynamics of trading and apply the philosophy to their trading style
- Understand the need for discipline when applying an investment strategy
- Understand the difference between a trading plan and an investing plan and how they work together
Phase 2: The Training Sessions (Application)
As students move into PHASE 2, they are beginning to paper trade and make decisions on companies and sectors. This phase focuses on applying the learned concepts to actual decisions with real companies. We deliver weekly information through our Real Time Market Analysis (RTMA) to keep the investor on top of what is happening within the markets and around the world. We also deliver additional ADVANCED CLASSES that further establish risk management, emotional management and money management as key concepts in the successful investor’s plan.
This phase is approximately 3 ½ months in length and establishes the process that you will follow in making real decisions with real money. The primary outcome is a well-defined trading plan that fits your risk profile.
During PHASE 2 the students will learn to:
- Develop/structure their wealth plan including how they will work with the active and passive components of their portfolio
- Implement their decision process with real life scenarios but with practice accounts
- Interpret the global news and events and understand how they impact markets
- Establish their risk profile
- Create trade scenarios to protect their capital and provide optimal opportunities for investment growth
Phase 3: Coaching and Mentoring (Execution)
Most novice investors struggle because they lack the coaching and support to understand the environment, they are trading in. PHASE 3, which is delivered in conjunction with PHASE 2, helps students interpret the decisions they are making in the context of the larger market. It focuses on developing better trading strategies through ongoing communication, support and mentoring. Students have access to scheduled coaching sessions, periodic market updates, market emails, and monthly newsletters. If required, students can re-take classes during this phase thereby eliminating the anxiety of learning new subject matter and ensuring that you understand and practice what is required to be successful.
Key items include:
- Paper trading analysis
- Advanced technical analysis support
- Individual coaching
- One-on-one support
Tools:
TRAIN2INVEST believes tools are necessary to make your job easier but they are not there to replace your ability to think. As such, all of our education will utilize widely available, free technical tools that offer complete analysis and charting capabilities. One does not need a myriad of technical indicators or analytical tools to be successful.
Learning how to interpret technical data is far more important than having a chart filled with indicators.
The key to successful investing is confidence and consistency.
With the knowledge, structure and planning, tools and with the right support resources, almost any individual has the potential to build wealth. The change in your financial future through education is nothing short of phenomenal.
What happens after the 6 months? Extended Support and Coaching
After the first 6 months of teaching, training and coaching, students have the option of 4 different levels of ongoing support and coaching to ensure they are getting the most out of what they have just learned. Each level provides a different focus from an information-based option to a full portfolio mentoring-based option. The student is in a much better position to understand the support and coaching they will require based on their individual trading and investing skill-sets at that time.
What is the Cost of the Program?
- Let’s deal with a concept called VALUE!
- Which one of these cars is worth $75,000?
- (They are both cars that take you from A to B… except when you meet a MACH truck!).
Now, here’s what you need to do:
- FIRST: calculate the COST that you are currently paying per year then multiply it 10 times.
- SECOND: What if you earned 5% p.a. on the COST that you just gave away? How much would that amount to?
- THIRD: What did you receive for the fee that you paid?
To discuss your needs,
Please call +1 204-414-9106
The Stock Market: An Untold Story
The Stock Market: An Untold Story
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The Stock Market: An Untold Story
The Myths About Stock Trading
For many individuals, any discussion on the stock market brings fear and doubt.
IMMEDIATE CROWD REACTION TO STOCK MARKET INVESTMENT
Let’s debunk some of the popular myths:
The stock market is a form of GAMBLING: FALSE
How did this myth start? It began when speculators (see. Nortel and the dot.com story ) tried to time the market. In everything, there will be some who attempt to gamble
- Q: Why was the stock market created?
- A: It was created to raise CAPITAL for companies to expand.
Example:
Let’s say ABC Co was in the oil rig-building business. It has an opportunity to drill in the North Sea. To do so it needs a specialized oil rig which will cost $ 1.5 billion to build. ABC Co has approx. $ 250 million that it can draw from its bank account. Where will it go for the remaining $ 1.25 billion need? Banks will NOT lend ABC Co the $ 1.25 billion because they will not accept the ‘risk’. Risk? Yes, what if they do not strike oil, how will the repayment of the loan be made?
However, the banks may be interested in debt financing such as bonds assuming that they are comfortable with ABC Co ‘risk’. A group of (say) 10 banks may be willing to ‘underwrite’ up to $ 250 million with each bank being exposed to $25 million of ABC Co risk.
So far, we have accounted for $ 500 Million ($ 250 Million from Cash Account & $ 250 million from Bonds – Bank Debt)
For the remaining requirement of $ 1 billion, ABC Co will likely issue shares – let’s say at $10 per share i.e. 100 million shares to the public (via Institutional investors e.g. Merrill Lynch; Goldman Sachs etc.) – raising $ 1 billion from the ‘market’.
Summary:
Cash from ABC Co $ 0.25 billion
Bank Debt (Bonds) $ 0.25 billion
Equity Market $ 1.00 billion
Why would the ‘public’ buy ABC Co shares? The assumption (based on one’s own research) is that the North Sea rig will hit a ‘gusher’ and generate lots of profit for ABC Co. In that case, the $ 10 ABC CO shares will increase in value to – let’s say $ 20 per share which will give the investor (who took a risk), a 100% return on his original investment. While this is an unlikely scenario (i.e. a 100% return), the point is that investors get a higher return from stock market investments (either through share price appreciation or dividends or both)than in any other form of wealth building strategies.
The stock market is very RISKY. Every enterprise carries some form of risk.
Any venture is risky when entered into without knowledge.
- Q: Would you drive a car without having learnt to drive?
- Q: Would you fly a plane without having learnt to fly?
- Q: Would you put your money in a bank that has no offices in Canada?
No – all of the above would be risky.
You need a PhD in finance to understand stock market investments. FALSE
This is a myth propagated by the financial services industry so that you are beholden to them. That’s the reason they have ‘certified’ financial planners who are really sales people in camouflaged in “expert” clothing.
Recent activities in Wall Street clearly illustrates that there is no such thing as “Smart” money.
Anyone who has the ‘knowledge’ and the ‘discipline’ can invest in the stock market with CONFIDENCE and CONSISTENCY.
You can’t beat the stock market. TRUE (but we can beat the performance)
Beating the stock market’s own performance is not possible, and those individuals that do actually accomplish this feat will not have their “luck” last for long. Don’t bother trying to outsmart the stock market, just accept that you aren’t going to outsmart the millions of other investors who believe the stock market isn’t beatable.
The stock market is able to be beaten in terms of performance!
Investors and traders, do it every year, and some do it every year consistently. Most investors simply don’t have Knowledge & Discipline to actively manage their portfolios and thus do not have the ability to outperform the stock market over the long term, which is why this myth refuses to die.
When someone makes money, someone else losses it FALSE
This is the belief that the stock market is a zero-sum game. So, when one investor losses money on a stock, someone else has gained that money. In essence, it is the belief that money never grows in the stock market but is simply transferred from the ignorant to the savvy investor. The stock market is not a zero-sum game.
What allows the stock market to go against this belief is that over the long-term investors can all profit as long as the stock market is constantly going higher. So even if I lose some money on a few stocks this year and gain on some others, if I invest for the long term, I will be profitable as will all other investors since prices are continuously going higher over the long term.
Why?
Imagine the wealth being generated in the Global economy e.g. China, India etc.?
Source: https://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf
At the mercy of ‘EXPERTS’
The typical stock trader in the market today is totally at the mercy of forces beyond their control. They are subjected to biased advice, computer-based software gimmicks, hundreds of investing web sites, thousands of books, an unending barrage of media-based financial ‘ sound bites’ and a host of other ‘expert’ opinions that make stock market investing a pure GAMBLING exercise.
TO BE A SUCCESSFUL INVESTOR – (successful investor is defined as one that is recording CONSISTENTLY positive returns) – you need KNOWLEDGE & EDUCATION (which this book provides) and you bring the necessary DISCIPLINE & MOTIVATION.
You cannot invest with CONFIDENCE & CONSISTENCY in the stock market by:
- Reading books (including Mr. Buffet’s methodology)
- Listening to sound bites from ‘experts’ on TV and/or radio.
- Buying into ‘magic’ software packages that recommend ‘picks’.
- Attending 3-7 ‘full-day’ seminars held in various cities.
- Watching some technical analysis genius trade on his computer.
- Reading specialists (read BIASED) News Letters.
- Buying the latest NEW trend (e.g. IPO or some exotic new stock).
- Going on an ‘Investment Cruise’ with ‘experts’.
Only KNOWLEDGE & EDUCATION with the aid of a tool (usually charting software) can help you achieve the CONFIDENCE & CONSISTENCY required to be successful in stock market investing.
What prevents the average person from taking advantage of the stock market?
- 1. Fear– Of starting anything NEW (i.e. of attempting things that society has generally deemed impossible.)
- 2. Greed– Instant gratification (i.e. having a ‘get-rich-quick’ mind-set).
- 3. The rapid PACE of change– not understanding the technological advances that takes place EVERY few years!
Most people understand what FEAR & GREED are but are ignorant about ‘the RAPID PACE of Change’ taking place in the world!
Billions of people can now afford the technology. It took more than a century to populate the planet with 1 billion telephones. The second billion took only five years. By the end of this decade 2 billion people will own – not just phones, – but phones with Web browsers. That means 2 billion people will shortly have a ticket into the global economy.
Internet search and transparency. A decade ago, if I wanted to do competitive research on the operating models and economics of any industry and business, I might have gone to McKinsey & Co. or Goldman Sachs. (The research would have cost tens of thousands of dollars). Today Grade 12 students in front of computers with access to Google can get the research faster and for free. In China there’s a saying: “One man’s margin is another man’s opportunity.” Now millions can imagine opportunity from trading on the stock market!
The pace of change is accelerating. Rewards are going to those companies that are exceedingly fast, clever and capital efficient. There is no mystery here, no conspiracy, no abstract villain. Globalization is not the problem. Change–that’s our challenge.
Change?
1903 – The Wright brothers made the first flight
1969 – Man landed on the moon
66 years – ONE generation, what technological changes took place?
WHY IS THIS?
By the time the average adult begins his career, he has completed almost 16 years of education in numerous disciplines. However, his knowledge of money management and wealth creation is extremely limited for many reasons – for example, the educational system is geared to train one to get a job – regardless of the college or university degree, the aim of that degree is to train you in a profession which ultimately leads to ‘landing’ a job! Preferably one with a pension! Result – living from pay-check to pay-check is the norm for the majority of citizens in the world. However, the wealthy have been trained to:
- Firstly, to excel in educational pursuits (i.e. to have a disciplined mind)
- Secondly, to treat living life as a ‘business’ (i.e. ensuring a solid work ethic).
- Finally, to learn the principles of becoming wealthy (i.e. to make their savings/investments work for them).
“Based on in-depth interviews with numerous MILLIONAIRES, the study found the following factors vital in their (wealthy individuals/families) financial success:
- INTEGRITY – honesty in all relationships
- DISCIPLINE – self-control in every area of life
- SOCIAL SKILLS – friendly relations with people
- HARD WORK – a willingness to work harder than most people
- SPOUSE – a supportive spouse “
Thomas J. Stanley: The Millionaire Mind
A SUPPORTIVE SPOUSE?
Usually the following scenarios are played out in MILLIONS of households across the nation (if not around the world):
- INDIFFERENCE– ‘I really don’t care what you do (i.e. DON’T ASK, DON’T TELL) – just show me the money, honey!’ OR
- DISTRUST– ‘I am tired of your many ‘hare-brained’ schemes that have not worked. I will NOT let you make anymore ‘independent’ decisions (i.e. I WILL have the final say!). OR
- INDEPENDENCE– You keep your money & I will keep mine (i.e. WE ARE NOT A FAMILY – We just exist for ……..whatever the excuse they have conjured up to really fooling themselves, their children, the neighbors, their relatives…. etc.).
END RESULT?
In all these cases, the solution would seem to be to seek OUTSIDE ‘experts’ to ‘advice’ them on how they should manage their savings/investments.
Why is it that most families are unable to be SUPPORTIVE of their spouse when it comes to wealth management?
Before we review the above, let’s answer the following question:
WHO TAUGHT US WEALTH MANAGEMENT?
Did we learn wealth management?
- From school?
- From friends?
- From parents?
- From books or seminars?
- From university or college?
ANSWER: Usually through OSMOSIS – from a combination of the above!
There is a FALSE assumption that if you studied accounting, finance etc – even an MBA – you would have learnt HOW TO BECOME WEALTHY? WRONG – you would have been taught aboutwealth management and how to get a job and work for someone else – and in due course you MAY become wealthy!
Most people learnt about money and/or wealth management from their families (tradition).
Problem is that spouses come from different households (i.e. different views of money management/wealth building concepts) even if they came from the same cultural backgrounds.
Example:
| HUSBAND | WIFE |
| Entrepreneurial backgroundRisk-level: high risk-taker e.g. Options tradingVacations: Hawaii with 5-star hotel | Civil Servant (pension-based) backgroundRisk-Level – Low risk-taker e.g. GIC QueenVacations: Going camping with relatives- tent |
As you can see from the above, they have VERY DIFFERENT RISK PROFILES but yet they were attracted enough to have gotten married. (Opposites attract, eh? – Yes, that’s before marriage BUT after marriage they ATTACK!)
SAMPLE SCENARIO
Usually the one with a higher RISK TOLERANCE (either husband or wife) would have attempted to accumulate wealth through a number of methods. Before we look at the potential options for wealth generation, let’s review the picture below:
WHICH APPLE WILL YOU PICK?
The cautious spouse will pick the SMALLER one; the risk-taker will go for that BIG one.
BUT there may be some gunslingers who say ‘Back up the truck, we will take the TREE!’
Yet, neither decision is wrong.
It depends on a person’s RISK TOLERANCE – a concept that most families don’t understand. A person is WIRED (actually created) that way and there is nothing we can do to change them!
Any attempt to FORCE A ‘BEHAVIOR’ CHANGE (usually through manipulation, sarcasm, public humiliation, mind-games etc.) will result in frustration, bitterness, anger, distrust ……….
…………… ultimately in DIVORCE!
WHY? Because MONEY is usually the ultimate ‘SECURITY BLANKET’ that most individuals hold onto. In fact, it becomes their ‘god’ as they increase in age! (Have you heard how people plan for their OLD AGE? Planning is good; being OBSESSED is not.)
THAT’S THE REASON….
Many people, who are extremely successful in their BUSINESS, in the JOBS, in their PROFESSIONS etc. but when it comes to wealth management (in particular, the stock market), a GREAT SENSE OF FEAR overtakes them!
Two Reasons:
- Spouses have NO CONFIDENCE in their spouse’s money management skills
- The ‘OBJECTING’ spouse has NO CLUE what to do either.
SO…THEY TURN OVER THEIR HARD-EARNED SAVINGS / RRSP(S)/ 401(k) etc. to outside “EXPERTS”.
How do they pick these EXPERTS? Put it another way, what skill-set does the husband or the wife possess to determine that these are ‘EXPERTS’?
The decision is usually based on a slick presentation, a ‘big’ corporation image & ‘gut-feeling’ i.e. blown away by the ‘FACTS & FIGURES’ presented to them (or it could be that the EXPERT is the ‘MOTHER-IN-LAW’?)
The gist of the presentation would be like this:
- By the time you reach 65 years (used to be Freedom 55 in the old days), you will have enough money to live like Bill Gates
- You will achieve that WITHOUT much risk – DIVERSIFICATION is the answer!
RISK TOLERANCE
Unless the family is on the SAME page, there will be dissension in the camp. Ultimately, the CHILDREN will be totally confused & the NEXT GENERATION will live from paycheck-to-paycheck!
90% OF WEALTH MANAGEMENT ATTEMPTS BY FAMILIES ARE THROUGH “TRIAL & ERROR” METHODS.
- MUTUAL FUNDS – Due to the failure of spouses understanding their RISK TOLERANCES, the easiest way (with the ability to ‘blame someone else’) is to find a Financial Planner to take the responsibility of managing the family’s INHERITANCE. No regard to RETURN versus COST is considered.
- MULTI-LEVEL MARKETING – jumping on the bandwagon LONG after the wagon is gone. Building ‘legs’ & trying to sell the product (usually SOAP) to friends and family is not a winner.
- NETWORK MARKETING – a variation on the above. Again, selling ‘Vacuums’ may not bring your friends, let alone wealth. Mostly, consumed by immediate family members – eating the seed instead of sowing it!
- REAL ESTATE – Excellent investment strategy in an uptrend economy. Usually extremely successful in the initial stages of a ’bull’ market especially when buying ONE house and then making a ‘killing’ on it. Suddenly, GREED sets in and in an attempt to become ‘Mr. TRUMP’ in 7 days or less; a number of units are purchased with MINIMUM down payments so that it can be ‘FLIPPED’ quickly for a “SUBSTANTIAL” profit. Unfortunately, you & 50,000 other people came to the SAME conclusion at the end of the ‘HOT’ market! Massive losses or foreclosures or manager of tenants is the result.
- FRANCHISES– extremely costly enterprise. Royalties can potentially destroy the franchise-owner. It is nothing MORE than BUYING a 20 hour a day full-time job!
- FOREX (Foreign Currency Trading) – extremely speculative. Competing with global foreign exchange money managers in a 24/7 market. Your simple software cannot compete. PERIOD.
- COMMODITIES– similar to FOREX. Challenges: Forecasting future global demand for specific commodities and unpredictability of weather patterns.
- OTHERS: Black Box Computer Programs that trade penny stocks, FOREX; Options; Futures etc. – nothing more than gambling based on some “PROPRIETARY” system.
RESULT: https://gem.godaddy.com/p/41b1ed 
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