Trust and Your Money
By: Jon Hull[caption id="attachment_1191" align="alignnone" width="320"] Trust and Your Money[/caption]
Who do you absolutely trust with your money? We would like to think that we can trust any professional who has a position or institution that deals with keeping our money, safe, growing and available for our use. Instead, we are the only ones we can trust with our money. We can no longer just blindly trust that anyone we hire to care for our money is trustworthy.
Banks continue to reap record profits in a business-as-usual manner, as if there was no financial collapse just a few years ago when the government bailed them out. They continue to fee us to death. The banking industry collected about 30 billion dollars in over draft fees last year. To some, that means they took 30 billion dollars from people who had no money.
Investment firms continue to look for ways to bend laws into profits. There has been much press about brokers being able to steer customers to investments which pay the broker a bigger commission and no industry regulations to stop them from doing so. In fact, the investment industry is contributing untold sums of money to fight tougher regulations which put the customer first.
Boomers have had to fund social security for most of their lives so that our federal government could use those funds. Now there is a large rumble of that same government wanting to get rid of social security, with some politicians using the word entitlement as a smoke and mirrors way of tying those dollars to true entitlement programs such as welfare.
We must be savvy business people with our money. We must ask “why” a lot! Until we understand. We must drive our own money machine in every aspect of our financial lives. It is up to us to become knowledgeable, read the fine print and hold those we are trusting to the fire with respect to their recommendations. No, it’s not fair. No, we shouldn’t have to do this, but it is the only way we can make sure we are not falling for some scheme that leaves us unprotected.
In a more scientific approach, David Desteno, PhD, did some experiments in this article to see how trustworthy people actually are when money is involved. He also tests how people view those with power positions.
What about your estate plan? Did your lawyer just steer you into a one-size-fits-all Will or Trust? If you were to become incapacitated, who is in charge of your money? Is it someone you can absolutely trust? Has that lawyer ever called you to say that things have changed in laws and you need to make an adjustment in your plan? The rich people who run this country are hoping you will just walk blindly like sheep to the barn. Stand up and take control, it’s your money!
Jon Hull is Co-Author of A Legacy Undone. He is passionate about empowering people to put their affairs in order, but also writes about keeping finances and people safe.