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What
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Almost everyone I know purchased an Ohio Lottery ticket for Super Lotto when the prize amounted to some $30,000,00.00. There happened to be two winners, and each one will receive in excess of $600,000.00 (after tax) annually for the next 20 years.
You would imagine that these two families are fixed for life- no worries, no cares! Let's think for a moment what "you" would do with $600,000.00 a year, or $50,0000 per month, or $11,538 a week or $1,643 per day everyday for 7,300 consecutive days. Sounds both exciting and boring. After you bought your cars, furs, trips and houses what possibly could you do with all that money ---Okay, you can give it away. That would become a full time job, and who wants to work that hard.
Eventually, after getting over the thrill of victory, as well as the purchase of about everything you ever wanted, I believe that you would settle down to the real world, and come to the conclusion that you cannot waste the remainder of your money or continue to spend it foolishly. It would be inappropriate. It may take some years, it may take some months, but sooner or later the burden of the "money" will get to you. Burden - what burden? Let's assume that out of the $600,000 that $300,000 would need to be invested annually. Do you wait for a New York stockbroker to call with his latest deal or do you sit down with your banker and buy CD's and Treasury Bills, or do you buy annuities or, perhaps, do you have a professional portfolio manager handle it for you?
In order to make your decision, do you need to hire a CPA and a lawyer to make sure that all tax information and projections given to you are valid? Believe me it could become a full time job (it should be) making sure that your fortune is doing the job you want it to do. What it really comes down to is this, making your money work for you through prudent investments is perhaps the most important full time job that you would ever have. Either you must devote hours and hours doing it for yourself, or you must choose professionals you can trust and rely upon. In this situation, where there is a lot of money to work with, it may be easier than in most situations where the investable dollar is in short supply. In either case, you are ultimately responsible for the results.
Let's now assume that you have made the decision that this money must be saved or invested properly. What would happen next? Any investment person would ask you a series of questions to help you determine your individual investment style.
Questions like:
1. INFLATION HEDGE- How concerned are you about having your savings dollars and investments keep pace with inflation?
2. TAX ADVANTAGE - To what extent are you concerned about getting all the tax relief to which you are entitled, and which is suitable for you?
3. SAFETY - How much are you concerned about being sure you could get back your own dollars? ( A high score indicates a desire for safe investments - low score indicates a willingness to take risks).
4. LIQUIDITY - How much are you concerned that cash be available at once to meet emergencies and opportunities? (High score indicates a desire for assets which can be quickly converted to cash).
5. CURRENT INCOME- How much are you concerned at getting maximum income from your savings and investments this year? (High score indicates a need for income from investment now).
The additional questions will be asked of you:
1. How much do you want to set aside in an emergency fund?
2. How many dollars do you want to provide for the education of your children or grandchildren? Is it $5,000 a year, $10,000 a year, $20,000 a year or $50,000 a year?
3. How many dollars do you want for retirement, and at what ages do you wish to retire?
4. How many dollars do you want to provide for your family in case of your death?
5. How many dollars do you want for yourself and your family in case you become disabled?
And then the final questions would be:
1. What is the best investment that you ever made? Why?
2. What is the worst investment that you ever made? Why?
3. On a scale of 1 to 5, with 5 being the highest, how would you rate yourself as a risk taker?
We shouldn't feel
sorry for ourselves because we didn't win the lottery. The lottery winner has the
same problems that we have. That is, to make our money work for us so that we have
the best possible chance for gain. Reaching our financial goals won't happen overnight,
as I just stated, it takes time, study and discipline.
David has been in the financial services business since 1958 with his entire career devoted to personal production, estate planning, teaching and mentoring. Over the years, he has helped clients purchase in excess of $400,000,000 of permanent insurance He has been a member of the Million Dollar Round Table since 1961m achieving Court and Top of the Table status. Currently, he is a Life Member. David has earned the CLU, ChFC, LUTCF degrees and has served as a member of the "Hall of Fame" of both organizations as well as a winner of the Paul S. Mills Scholarship Award of the CLU nationally.
David is the Past President of the Mutual Benefits Life Agents Association and has served as a National Trustee of the Life Underwriter Training Council. He has moderated LUTC classes for 23 years, as well as teaching numerous CLU and ChFC classes. David serves on the Professional Advisory Committee of the Columbus Foundation in Columbus, Ohio. Over the years David has consulted with a number of insurance, estate planning and sales skills development.
Agent, Signator Insurance Agency of Ohio, Inc.,
an affiliate of John Hancock Life Insurance Company,
Boston, MA 021117
Registered Representative, Securities offered through Signator Investors, Inc.,
Member NASD, SIPC, 6500 Busch Boulevard, Suite 105, Columbus, OH
614-846-6000,
134-05082000-2966349