Protection

The Two Parallel Paths

Everyone that we meet must be on two parallel paths as they move forward throughout time. The first path is the protection path and this path deals with protection from death, disability, and liability. The second path is the wealth accumulation path. This path deals with saving enough money to meet our cash needs both today and in the future. The reason that we have to be on both paths is because the wealth accumulation path takes time. We don’t contribute $18,000 to our 401k and suddenly have $1,500,000. It takes time.

Along the way there’s a lot of things that can happen to damage or destroy our wealth. Some of these things include job loss, bad economy, death, health issues, lawsuit, theft, vandalism, fire, and flood. So given all of those things, how many things have to go right to achieve high levels of wealth?

All of them.

And how many things have to go wrong to dash all of this to pieces?

Just one

Because of this most of our clients would agree that they would prefer to protect themselves from as many of these threats as possible. Even if the cost of that protection was 5% of their overall wealth.

This way, by choosing to protect themselves, they now have close to a 100% chance of achieving 95% of their possible amount of wealth rather than the alternative which would be to not protect themselves and thereby taking the chance of achieving either 100% of their possible wealth, 50% of their possible wealth, or even possibly achieving 0% of their possible wealth.

Because most people would prefer to have a 100% chance of achieving 95% of their potential wealth, we feel as though thoroughly assessing all areas of protection is important for our clients' financial futures and overall financial plan.