Are you gambling your money away or are you investing? Do you invest money that you can't afford to lose in a place where the odds are stacked against you, or worse in a place where you have no clue what the outcome is? Smart investors don't invest in anything where they don't have some control over the outcome. Smart investors make sure they understand their investment risks vs the rewards. In many cases income for life streams or cash value life insurance can provide a safer alternative to gambling in the markets or 401ks. Investor or Gambler Hi…this is Dan Thompson One this video we are going to talk about the difference between an investor and a gambler. The term investor has been dramatically changed over the years. Let me see if I can define what an investor should be. 1. The money invested should be RISK CAPTITAL So what does that mean? It means that in the case of loss you should be able to walk away from it financially and emotionally without it negatively affecting your financial situation. Truth is you may be able to walk away financially, but it’s hard to walk away without emotion, we all hate losing money don’t we? How does that definition sit with you? Can you walk away from your investments in the stock market and be financially okay? 2. Next, Investors have a deep understanding and knowledge about the investment. This more then likely eliminates many people from putting their money at risk in investments they don’t understand. 3. Investors have some Influence or control Do you have any influence or control over what happens in your investments? Risk capital is “walk away money” - Money that you don’t need for retirement for instance. For most people I talk to their retirement plan at work is not “walk away” money. In fact under what circumstances would money you need for retirement ever qualify under walk away or risk capital? Never right? I mean we are saving or investing for our future….but at what risk? We saw many people put off their retirement plans after the last stock market crash because their 401k or IRA was their next egg, It was money they needed for retirement and their future income. In the end, it wasn’t risk capital. Understanding your investments is important. Do you know how many times I ask, so tell me about you investment mix? Why do you have your money invested in that fund or that one? More often than not it’s something like, well that’s what the guy told me to do. Or they said this portfolio mix was conservative, or moderate, or aggressive. When I ask how the funds or investments are managed or what they invest in or how they protect you from losses all I hear is crickets and a blank stare. No one knows…do you? Folks, this is your future. If you don’t know how or why your money is invested doesn’t that kind of scare you? Are you willing to risk your future? Lastly, having some kind of control or influence isn’t a bad idea. This is why many decide to own their own businesses. They feel like they have control or influence on the direction of the company. So if you have Risk Capital, a deep Understanding of the investment, and some control or influence, you are most likely an investor. I encourage you to watch Shark Tank. It’s a TV show where billionaires listen to ideas from people looking for money and investors. You’ll be able to tell right away that these “sharks” are investors. They have risk capital, if they don’t understand something they usually walk away, and they want influence on the direction of the company. Real quick, let me say something about the 401k. You know, the 401k wasn’t designed to be an end all to saving or investing. However, the promises and lure of double-digit returns gave people hope that they could save less and have more in the end. ... -------------------------------------------------------------- Please Subscribe! https://www.youtube.com/channel/UCNtQmqZlNUwzPuWmHPI_oSg?sub_confirmation=1 Visit me on the web- http://WiseMoneyTools.com/ Follow me! FB - https://www.facebook.com/wisemoneytools Twitter - https://twitter.com/wisemoneytools Google+ - https://plus.google.com/114367619155241197052 I have been involved in financial planning for over 30 years. I started out as a high volume stock broker. After working with millions of dollars I decided there had to be another way for people to earn money in the market without all the risky ups and downs that leave you where you started, or worse. After reading a ton of books I came across a book on the Infinite Banking Concept and it completely changed my life and the way I view investments. Now I focus on building wealth in safe and predictable ways, like Infinite Banking, Cash Value Life Insurance, and Indexed Annuities to name a few. I post videos regularly so if you have any questions of comments feel free to email them to... dan at wisemoneytools dot com
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Duration: 10m 36s
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