Some Important Laws

Life is easier if we understand the limits and operating requirements

The Law of Conservation of Problem

Financial problems are neither created nor destroyed.  They merely change their form.

You cannot receive a large amount of money and remove your financial problems.  The problems of having too little money would be replaced with things like, finding an investment adviser with integrity and skill, finding a good tax practitioner, personal security for yourself and your children, change in relationships with friends and family and discovery of many new “friends.”

The Law of Experience and Risk Tolerance

Experience + Risk Tolerance = A Constant

When you are young, you are bulletproof.  Risk tolerance declines as experience increases and  teaches you that bad things can happen.

The Law of Universal Costs

There is a cost to do something and there is a cost to do nothing.  It is a mistake to assume that doing nothing costs nothing.

The End of Life Baggage Limit

Despite what American Express says, their traveler’s cheques are not good everywhere.  You cannot take your wealth with you.

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: