“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…” A Tale of Two Cities, Charles Dickens

Tom and Jerry were two respected professionals in the financial services business in a mid-size American city. Each had a loyal client base and each had a burning desire to build their practices to mythical dimensions.

Tom was recruited right out of college by one of the Behemoths with a large advertising budget and a well known name. Jerry began his career as the understudy of an independent financial planner. Tom received a subsidy from the Behemoth and was able to thrive in the rigidly controlled organizational environment. Jerry worked on commission only and was supported by his mentor, who shared clients and split commissions with him.

After a few years Tom became disillusioned with the world of the Behemoths and convinced himself that he could do better as an independent. Jerry recognized that his future was limited as long as his mentor remained in practice. Each of these young men struck out to build their own empires. Tom had to wrangle a contentious release from the Behemoth and gave up non-vested commissions. Jerry left his mentor on the best of terms and continued receiving all of the commissions he had earned.

Tom had another problem. Tom had taken his own advice and put as much money as possible into his tax qualified retirement plan. When it was time to rent an office and buy furniture and equipment, Tom had very limited ready cash and was forced to pledge personal property and the equity in his home to support his new venture.

Jerry, on the advice of his mentor, eschewed tax qualified investments and put as much money as possible into his life insurance “banks.” Jerry borrowed all that he needed from his own “bank” to buy a small office condo, furnish it and buy all of the equipment and supplies that he needed to continue his practice as an independent financial advisor.

FAST FORWARD…

In the cartoon, Tom always loses.

Tom and Jerry are still successful financial advisors. Here’s the net difference. Over the ten years following thier move to independence, Tom has spent over $360,000 renting space and leasing equipment. Jerry spent the same amount but, instead of paying rent to a landlord and leasing furniture and equipment from outside vendors, Jerry repaid the loans he made from his life insurance policies and recovered the entire $360,000, which, by the way, has grown to almost $750,000.

You can guess the difference in the net worth of Tom and Jerry; plus $750,000 to Jerry’s bottom line.

Following the principles and practices that make you rich instead of making others rich is quite simple and quite painless.

• You don’t have to change your lifestyle.
• You do have to change your mind about money and how to employ it to your own best interest.
• www.TheMoneyForLifeBook.com can show you how.

Bookmark To: