Financial Planning Simply Does Not Work!
Have you ever heard of "Cognitive Dissonance"? This is where the individual has to make a choice between something attractive and something that is not. Marketers understand this and create programs and marketing plans that satisfy this dilemma in people's minds.
If you knowingly promise something that you can't deliver, just to persuade someone to choose you over another, you are nothing short of a conman. So many times people are given bad information, and are persuaded to leave something that they thought to be good for another program that is really not good but promises to be better than their original selection. They are being persuaded to switch their thinking through cognitive dissonance to what they think is better.
The financial sales people do this all the time, knowing that what they are promising is not exact or truthful. The information that they share with their clients is not verifiable for truth, as we have just seen in the recent economic downturn when people lost huge sums of money. Had people had verifiable information they would not have lost money, and would had realized that what they were being promised would not happen.
Wealth creation is different than cash creation and demands verification as to truthfulness. It requires that a process be the main focal point and not a product. It demands that the client understand fully what the pros and cons are in what they are doing.
All of this is achieved through economic simulation, which means being able to see everything through an economic simulator. Being able to see the future before it happens and understanding where the flaws are. Looking at the financial world through a whole different paradigm and fixing the problems before they happen. If people used an economic simulator they would have exposed the Madoff ponzie scheme, but instead they ended up listening to information that was opinion driven and not factual.
Listening to bad information is not relegated to just lower income people, we saw it happen to wealthy people because greed over rode the 'cognitive dissonance" selection process. Now you might be saying that "This does not apply to me, to which I would reply, ok you might be right." But if you don't want to lose you will want to see it first before you do it. This is the only logical position to take and if you follow your gut feeling you will see that I am right.
If you want to learn more come to our tele seminar at www.MoneyTeleSeminars.com and sign up for a 2-hour TeleSeminar where you can learn all about looking at the financial world in an economic light. You will be glad you came.
Thanks for reading
Dr. Raymond Jewell, Senior Economist
