The 21st century way to wealth: settle down
By Jeffrey Reeves MA
Editor's note: Jeffrey Reeves' introduction to "The Way to Wealth" provides an overview of this weekly blog series.
“But with our industry we must likewise be steady, settled and careful, and oversee our own affairs with our own eye, and not too much to others…”
Benjamin Franklin in the persona of Father Abraham
WOW! I wonder what Father Abraham would think of “modern” investment vehicles such as mutual funds, ETF’s, hedge funds, mortgage bonds and derivatives of all kinds? These instruments demand that you not “…oversee [y]our own affairs…”
The companies and the people that sell these products would have you believe that they are “steady, settled and careful,” but those qualities are not intrinsic to their products or the hallmarks of the marketers. A cursory view of the turmoil in the financial community in 2008-2010 demonstrates this clearly.
In fact, the less you know the easier it is for them. If you think that’s an exaggeration, try reading a prospectus. You’ll discover that you know little more after reading than you did before, and the prospectus is supposed to be the fountain of truth about mutual funds and primary stock offerings.
The truth is America has lost sight of the wisdom that makes it great. Unless Americans reject conventional wisdom, which is no wisdom at all, and regain clarity about how to handle their own money, they will soon find themselves gaining wisdom and clarity from the bankruptcy judge while America gets its marching orders from the Middle East and China.
It’s your choice. Think about it.