As people work to make money on Main Street, insurance plays a key role in making sure that an illness, fire, or accident does not put them out of business and that the financial goals for families and charities are met if the person who set the goals dies before they are achieved.
"Stick to what you know" seems like common-sense advice, but I have watched many business people make the same mistake I did. Once things start to go well, entrepreneurs think success will last forever.
Washington and Wall Street are tied at the hip and spend most of the time talking only to each other. They are connected socially and economically and have media outlets devoted to promoting their philosophies.
Because the money is harder to access, people who take structured settlements are more likely to "get rich slowly" than my professional clients who can cash in a mutual fund or stock whenever they want.
"Financial reform" is a boon for people in the payday loan business. When people fall out of the world of traditional banking, they are still going to need bank-like services. Payday lenders will be in position to fill the gap.
Why give your family a lump sum and have them blow it? Most insurance policies have options to pay out over time, but few people use them. It limits them to the terms of the insurance company. Thus, I came up with a simple system.
Most of us want to be physically fit, but very few of us are. The same holds true with financial security. As my father (and many others) used to say, "A lot of people want to go to heaven but no one wants to die to get there."
Liz Gilbert said of Italy, "In a world of disorder and disaster and fraud, only artistic excellence is incorruptible." I have pondered her insight for weeks. I keep asking myself the essential question. Is the US headed the way of Italy?
For a decade, Wall Street was playing funny money games, and many Americans also felt like they were invited to the celebration. We were living in fantasy land, but the fantasy is over and we woke up to a nightmare.
Each year, I write a column on Derby Day, and if you have followed my advice, you have lost a lot of money. The large fields at the Kentucky Derby throw logic out the window. Still, the betting system I tour is a good one.