Investing Your Dollars: Failing to Plan is Planning to Fail

Investing your dollars is the right thing to do, right? We all know that. “You should invest” – seems to be the generic advice we hear from those with more knowledge or experience. Yet, that advice rarely lands well because there is usually little to no context behind it.

So, what type of investing is right for you? Well – that depends – and that’s clear as mud, right? The first thing that should be noted here is that in a general way, investing in something is better than investing in nothing. But not all investments and not all strategies are created equal.

A well planned and thought-out investment strategy that is designed to play the long game, protect your assets, minimize your tax liability and maximize your returns is far superior than short-term investments or just “winging it.” 

To better see the difference between a well thought out strategy vs. a “take it as it comes” plan, let’s look at two scenarios and compare:


These two scenarios may look relatively similar on paper, but let’s look at the additional tax-liability and exposure that Investor 1 has. 


Not only does Investor 2 enjoy a heftier balance sheet, far less tax liability and more protection through their strategic use of investment vehicles – they can even pass their fortune along TAX FREE to their dependents and beneficiaries whenever the time comes for them to pass. The Trust and the IUL Insurance policy make their portfolio impenetrable to the would-be estate taxes and prying interests of family, friends and business partners that feel entitled to their nest egg.

To come full circle, Investor 1 believes they are doing well – and for all intent and purpose, they are! Remember, earlier we talked about how investing in something is FAR better than investing in nothing. However, they are working significantly harder to create only a fraction of the wealth and protection that Investor 2 is experiencing. The reality is that if these two investors started at age 25 with $0 and followed the same path for 30 years, Investor 2 would have over 10 times the balance sheet that Investor 1 had!

There are many, many other strategies, tools, and opportunities that we did not talk about today – and that is even MORE reason for you to find yourself a wealth manager and a financial planner. The best place to start with this is either at a local investment group or a warm referral from a successful friend, relative or a mentor that you respect. 

PHEW– Now THAT is a mouthful. If you’re a bit confused right now or if you’re intrigued – you are still in the right place.

There are a TON of terms in here that may be new to you. Do not worry – you’re not alone – and we’re here to help. 

Happy investing!

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