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Saturday, October 15, 2011

Secrets of Wealth

Listen... do you want to know a secret

Secrets of Wealth

Wisdom of Smart People; Words to Remember

How Many Advisors for Wealth?

There is no doubt that it makes good sense to have a methodology and criteria for selecting a financial advisor. A pretty basic undertaking.

The secret of wealthiest investors worldwide is; however, rarely disclosed to the ordinary investor. That secret derives from a legacy of practical common sense. Internationally, our firm deals only with wealthy individuals outside of Canada. Still, every single global investor we deal with applies this approach to the management of their investments. In fact, we will not accept any client unless the full measure of this strategy is applied. “It is mandatory without exception.”

So what is the common sense approach used by top investors worldwide. Well, it is simple and easy to understand. They all have at least “Three Independent Financial Advisors” That's right; not one, but three.

Why? The reasons are straightforward from a smart business and investment view. They want three VOICES to listen to and be included in their investment decisions. This is smart; as they accept that the world of investments is complex and that no one philosophy is best all of the time. So to counter the risks of a singular approach, three unique professional VOICES are involved in these critical decisions.

They recognized decades ago the wisdom in seeking distinct alternative views. Thus, they did not get financially ruined by events like the 2008 Meltdown, Madoff Scandal or the recent market crash. This approach is intellectually prudent and wise, while it counters the promotional rhetoric of institutions. It is one key reason behind their success and wealth.

Why don't you know? Well, self-evidently it is not in the best interests of advisors and their institutions. NOT IN “THEIR” BEST INTERESTS. So it is unlikely you will ever hear this; from them. And they may perhaps be taking advantage of your lack of knowledge and awareness. Here's the clincher. It costs you no more to have three advisors than one. So you are looking at the same cost, yet for much greater benefit and insight.

What different types of financial advisors do these astute investors employ? From our experience, there are three distinct VOICES they listen to. Over the years we have learned of three unique advisor types: Conventional – the vast majority; Contrarian – maybe 5-10% of advisors; and thirdly, Maverick – rarer; utilizes integrative tactics (Charles Monger) No one style is good on its own, but it is the powerful combination of the three, that generates the best advantage.

There you have it, the most important investment strategy of wealthy investors. This is an approach that should easily align with your intelligence, knowledge and common sense. Every investor is at liberty to copy, research and prove this approach. They would be wise to do so. Very wise indeed…

First Financial Insights Inc.
Toronto ON.
October 15, 2011

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