LISTEN TO MOM - DON'T PUT ALL YOUR EGGS IN ONE BASKET!!! - by Anonymous
If you had a mom (or dad) that was anything like mine, you probably remember hearing her tell you a thousand times growing up to "not put all your eggs in one basket"! Well, if you are like me, as a child, you mostly let tuned her out and let it go in one ear, and out the other! Right!!!??? Oh, we can laugh about it today, but this is just a little more serious, and mom's advice is more true today than ever before with the prospects of the Iraqi Dinar revaluing sometime hopefully in the very near future. So, please listen up my Dinarian Friends!
I bring this up because earlier today a good friend of mine blew my socks off when she told me a story of a personal friend of hers who had actually won $1,000,000.00 from the Lottery!
Holy Cow I thought, I finally actually know someone who knows someone that has really won the Lottery!!!
Long story short, her friend had trusted just one "Very Professional looking and fast talking" Financial Adviser/Company with investing all of his $1 Million lottery winnings! Yikes!!! Sounds foolish right??? Especially after all those years of mom telling us while growing up - "don't put all your eggs in one basket"!
So, how does that apply to us Dinarians?
First, we can learn from his mistake by trusting just one person/company to handle all of our money! Today the Big 4 Banks try to train us to keep all of our investing and money with their one company or family of companies.
How many of you have your Checking and Savings, Mortgage and Car Loan all with one Banking Institution? The banks do this to make more money off of you! They do this despite it being in your "best" interest! We have been trained to do this - at our own peril.
Next, let me make a very simple and quick Dinarian example:
Let's assume you're holding a total of 1 Million IQD Dinars.
And lets assume "today" the Dinar has revalued to the equivalent of $4.00 to 1.00 IQD Dinar! Wahoo!!! Party!!! Celebration!!!
Okay, now that we all have celebrated its time for you to get a little more serious about your thinking!
You now have $4,000,000.00 in Cash! What Next???... Think about this, split up the money to several "baskets", maybe something like this:
Basket #1 = $500,000.00 (to pay off bills, the mortgage, car loans, pay for a vacation, etc.)
Basket #2 = $500,000.00 (to buy real estate investments - read my other article "ADVICE: 'PROTECT YOUR PRINCIPLE" CONSIDER THIS AFTER THE RV" )
Basket #3 = $3,000,000.00 (long term investments such as mixed Mutual Funds issued by ONLY Top 10 Investment Companies) Lets say you are satisfied with the qualifications of the Top 10 Ranked Investment Companies (i.e. Investco, Franklin Templeton, Oppenheimer, etc.) You could give each company just $300,000.00 to invest for you, right?!!!
This is only an example, I'm really trying to get you to start thinking of how to split up your money and your investments.
By splitting up your $3 Million with 10 different Top Rated investment companies, you greatly minimize your risk of loosing all of your money like the guy who gave ALL of his Lottery Winnings to one Investment Broker/Company!
Listen to Mom's Advice, sometimes she is correct!!!