We are constantly being warned about identity theft. While I have never had my identity stolen, last year someone did try to illegally access one of my personal bank accounts by manufacturing phony checks.
I tip my hat to both the bank and the sheriff’s department for their efforts to try to stop the attempted fraud. They spent a great deal of time reviewing a store’s security tapes in an effort to identify the perpetrator.
I, too, had to spend some valuable time making certain everything was in good order and establishing a new account. At the end of the day, I was fortunate in that it didn’t cost me one penny.
In today’s world you can find financial trouble even when you’re doing everything correctly. A recent survey by Pew Research revealed that the vast majority of Americans define the American Dream as “having the freedom of choice in how to live.” Also near the top of the list were having a good family life and the ability to retire comfortably.
Those are all admirable objectives, but it’s important to understand that having the freedom to live as you choose comes with certain responsibilities.
We’re bombarded with warnings and disclosures every day. It starts in the morning when you start your vehicle and hear an incessant dinging if you don’t buckle up. Then, if you stop at a fast food place along the way, you’ll see the calories disclosed on various food items.
Virtually every bottle or can of alcohol warns pregnant women of the dangers. Every medicine discloses potential side effects. Tools at the hardware warn you of the dangers of operating machinery.
Our world is full of warnings and disclosures, most with the objective of informing you to prevent you from making bad decisions.
Sometimes I believe that we’ve gone overboard with so many disclosures.
Does anyone not know that operating a chain saw can be dangerous? Is there anyone out there that doesn’t understand the dangers of alcohol abuse? Or that smoking is hazardous to your health?
There are warnings in the financial world too. Past performance does not guarantee future results. Shouldn’t every investor be aware that an investment could decrease in value as well as go up?
Actually, I think there are people who ignore such warnings. Because we frequently hear about people that don’t buckle up, abuse alcohol, use snow blowers on roofs or make horrendous financial decisions.
If I ran an advertisement promising some ridiculously high guaranteed rate of return, I’m convinced I’d receive numerous inquiries from people willing to take a shot.
Hardly a week goes by without hearing about someone who fell victim to some financial scam. In spite of all the news reports and
disclosures attempting to educate consumers on everything from A to Z, people still ignore the warnings and bad things keep happening.
Today is somewhat of a rarity in that it’s both April Fools Day and Easter Sunday. Let’s hope we’re all smart enough not to be fooled by unscrupulous people looking to make a quick buck.
Regardless of religious beliefs, we should all be thankful that we live in a nation where we have the freedom to choose how we live. And realize that financial responsibility is a very smart choice.
E-mail your questions to kenmorris@lifetimeplanning.com. Ken is a Registered Representative of LPL Financial. Ken is Vice-President of the Society for Lifetime Planning. All opinions expressed are those of Ken Morris. LPL and Society for Lifetime Planning are independent companies. Securities offered through LPL Financial, Member FINRA/ SIPC. Investing involves risk including loss of principal. No strategy assures success or protects against loss.