Misunderstanding Insecurity

Insecurity leads to behaviours that are not helpful.

If we mistake security to be the opposite of risk we will reach weak conclusions.

In a state-run society the government promises you security. But its a false promise predicated on the idea that the opposite of security is risk. Nothing could be further from the truth. The opposite of security is insecurity, and the only way to overcome insecurity is to take risks. The gentle government that promises to hold your hand as you cross the street refuses to let go on the other side.    –  Theodore Forstman

Another look

The government can cure little and pretending to reduce risk is a false process, so we must look for a secondary cause and process.

Personal instead of societal level. 

We have many personal insecurities. The majority cannot solve with government action. In our personal cases, insecurity arises from fear and not so much from risk.

Risk and fear are different. 

The defense to fear is knowledge. For example, much of investment risk can be neutralized by knowing more. As Warren Buffett claims, risk comes from not knowing what you are doing.

Make life easier

Fear is a natural response to perceived danger. It causes us to take action. Sometimes action first is better.

Learn about perceived danger and methods to avoid it and most of the fear resolves. Interestingly the risk disappears too.

We can control our own surroundings. 

Relying on others, particularly the government, to keep us safe is counterproductive. They cost to much and often make other problems appear.

Knowledge is the antidote to fear.

One of the risks we must take is the investment of time, money and energy to learning more. Investments aren’t scary. Systemic risk is insurable. Understand your world and know your options. It will get better and easier.

Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.  In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.

Please be in touch if I can help you.  don@moneyfyi.com  866-285-7772

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