Why Keep it Simple?¶

“Everything must be made as simple as possible, but no simpler.” -Albert Einstein

“Simplicity is the ultimate sophistication.” ―Leonardo da Vinci

“The art of being wise is the art of knowing what to overlook.” ―William James

“The expression of truth is simplicity.” ―Seneca

“The greatest ideas are the simplest.” ―William Golding

“If everything is important, then nothing is.” ―Patrick Lencioni

“The most complicated skill is to be simple.” ―Dejan Stojanovic

“The greatest truths are the simplest.” ―Augustus William Hare

“It takes a long time to learn how to do something simple.” ―Marty Rubin

“Expert: Someone who brings confusion to simplicity.” ―Gregory Nunn

“Complexity creates confusion, simplicity focuses.” ―Edward de Bono

“Complexity makes you seem smart. Simplicity makes you money.” ―Codie Sanchez

“The best ideas explain the most while saying the least.” ―Naval Ravikant

Watch Making a Complex Subject, Simple VIDEO

Read Nick's ATY 018 January 18 - Simplicity PDF

Read Nick's Around the Year March 23 - Illusion of Complexity PDF

Read Steve Siebold's Secrets of the World Class's #119 - Make The Complicated Simple PDF

KISS is an acronym for "Keep it simple, stupid" as a design principle noted by the U.S. Navy in 1960. The principle states that most systems work best if they are kept simple rather than made complex; therefore simplicity should be a key goal in design and unnecessary complexity should be avoided. The phrase has been associated with aircraft engineer Kelly Johnson (1910–1990).

The way top advisors sell is by simplifying matters, not complicating them. Many advisors purposefully add complexity to their presentation, thinking it raises their stature and indispensability in the eyes of their clients. This complicated approach, however, works against the advisor.

By using simple illustrations, anecdotes, and metaphors, they bring themselves and their ideas into the mental grasp of every client.

Advantages¶

• You gain credibility with your Clients and Reps by helping them truly understand.
• You make people suspicious when you present ideas in a complex way.
• Simple is easier to teach.

Simplicity Takes Work¶

• It is easier to make simple concepts complex, than it is to make complex subjects simple.
• Simple isn't easy. It takes effort and practice.

How to Keep it Simple?¶

• Use stories, metaphors, parables and analogies. Facts tell, stories sell. See the StorySelling post. Don't be too explicit in your message. Vagueness can lead to your prospect filling in the blank for himself, and "customizing" the message of the story to himself.
• Use one-liners.
• Use pictures, diagrams and napkin presentations.
• Use physical props.

Mutual Funds¶

Suitability¶

Let’s say you had an opportunity to buy an exclusive condo on the lakefront and there were only two units left. One is on the top floor where you have the most inspiring panoramic view you've ever seen; and the other one is on the bottom floor facing a neighbor's wall but where you can get out quickly in case of a fire.

Which one do you think you’d buy?

With your answer I think I could point you to the type of fund that matches your risk tolerance.

Retirement Planning¶

One thing about life is certain: It goes on. Let's make sure your money does too.

Many clients ask me, "Am I going to be okay?" Let's work together and make sure you are - for the rest of your life.

One Business vs Many¶

Look at this picture and ask yourself what are the chances of the business on the left going broke?

Pretty fair chance, right?

Now, what are the odds of every business in the skyline going broke?

Extremely remote. That’s why we invest in mutual funds, because owning many companies is much safer than owning just one.

Do you know what investing for the long run but listening to market news every day is like?

It’s like riding up an escalator while playing with a yo-yo, and keeping your eyes fixed on the yo-yo instead of the escalator.

Focus on the ride up, not the yo-yo.

I believe in investing in stocks; but only in bundles of 100 or more. Instead of searching for the the needle in the haystack, just buy the whole haystack. But not the whole corn field (that's an index-fund).

The market doesn't go down, it gets cheaper.

The market doesn't lose money, people lose money.

Accumulate shares, not dollars. Shares are like rental properties. Investing in stocks is like focusing on a tree. Investing in mutual funds is like focusing on the forest.

"The underlying secret to long-term investing can be summed up in four words... faith in the future."

What's the only thing people don't buy on sale? Companies!

When discussing the issue of client behavior, say, "Investments are like a bar of soap: the more you touch it, the smaller it gets"

It takes 20 years for your $100 bill to turn into a $50 bill (inflation).

"Mutual funds are diversified. So, it might own stock in a sun tan lotion company, and an umbrella manufacturer. Rain or shine, I'm making money."

The best way to beat inflation is to invest in the thing that creates it.

"We lose you less money."

American Funds' unofficial tag-line. Use in a down market.

"We've all seen this movie before. We know what happens in the end. And yet we all manage to cry in the middle."

After describing the Market Cycle Clock.

"You make all your money in the bear market, you just don't know it until 3 - 5 years later."

"Averages can be misleading. Having one leg in a bucket of ice, and one in a fire pit, should give your body a nice temperature average. But it doesn't."

"It's not the bricks, but how you put them together".

Good analogy to illustrate the power of mutual funds, financial planning our your leadership! If they don't "get it", then draw a pile of bricks next to a pyramid, and say the above phrase again.

5 Steps of Explaining Mutual Funds¶

1. Compound Interest
2. Ibbotson color chart
3. mutual fund concept (pencils) - many people invest
4. ICA
5. tax shelters (baggies)

Watch 5 Steps to Explaining Mutual Funds VIDEO

Tax Shelters¶

Variable Annuities with Income Riders¶

Watch Simply Explaining VA Income Riders VIDEO

“If you had a money-printing machine in your basement, would you insure it?” “Well, the variable annuity is that money-printing machine for your retirement."

Metaphor #1: Pencils & Baggies¶

The penicls are the mutual funds, and the baggie is the variable annuity.

Metaphor #2: Tree¶

• Seed → Tree → Fruit

Metaphor #3: Golden Goose¶

• What's more important, the size of the goose or the number of monthly golden eggs?

Metaphor #4: Hands¶

• Use two hands to demonstrate account value and the monthly income.

Metaphor #5: Bicycle with Training Wheels¶

An example that illustrates the benefits of modern-day variable annuities is a bicycle with training wheels. The training wheels on either side are like the death benefit, and the income benefit of variable annuities.*

The security of the training wheels on either side allow you to ride your bike at the speed you want. If you tip to the left, you have the death benefit. If you tip to the right you have income benefit.

*We hope you don't tip the bike at all, but if you do, you're covered!

Metphor #6: Golden Gate Bridge¶

An example that illustrates the benefits of a modern-day variable annuity, is imagine driving on the Golden Gate bridge. There is very little traffic, no wind, and you can see the guardrails on either side. You'll probably drive at a healthy speed, right?

Now, imagine the same scene, except there is a strong crosswind, and NO guardrails! What's your speed now?

And yet, the two scenarios differ only psychologically. The guardrails give you the sense-of-security you need to drive the speed you desire.

The riders of a variable annuity are similar in that they allow you to invest the way you need to, while knowing that your principle is guaranteed for your beneficiaries, and your monthly income is guaranteed for life.

Metaphor #7: Rental Properties¶

If you're retirement income was based upon the rental income of apartments you owned, how many of your rental properties would you put insurance on?

One-Liners¶

• The mutual fund company is the money manager, and the variable annuity is the risk manager.
• A variable annuity is tax-deferred managed-money with a guarantee.
• VAs are like a self-directed social security or private pension that's invested in mutual funds.
• Your first paycheck is your worst paycheck.
• We need equities during retirement to fight inflation. But, how do we manage the volatility inherent in equities? MF + VA/GIR
• The account value rises and falls with the market, but the income-guarantee never goes down.
• Good news on fees: they don't offset your income, only the growth.
• When you are withdrawing money, you are doing it against your money. It's not until you run out of your money that the company is on the hook.
• Why do VAs cost more than mutual funds? Because of the insurance protection you get.
• Would you pay 2-3 cents to protect every $1 of income?
• Your retirement income isn't based upon your investment value, is it?
• Your retirement income doesn't go down when your account value goes down. In fact, when your account goes up, that your new income-minimum.
• You can lock your income on the peaks, and you don't have to endure the valleys.

Life Insurance¶

• Term: You buy; you die; we pay.

Question: “Do you buckle your seatbelt before you drive or after a crash?” Bridge: “We lock in protection first, then we talk performance.”

Living Trusts¶

• "Would you like your loved ones to receive their inheritance quickly, or wait up to 2 years or longer?"
• "Would you like to keep your estate private or made public when you pass?"
• "Would you like 100% of your estate to go to your loved ones, or would you rather they receive 95% and the other 5% go to attorneys and court fees."

Team Building¶

Financial Advisor vs Money Manager¶

“I don't build 'em. I just fly 'em.” -Chuck Yeager

• I'm the Conductor of your financial orchestra - I'm not the trumpet player.
• I'm the architect of your financial plan - I'm not the brick layer.
• My job is to coach you, the driver. Not to build the engine.

Prospecting¶

• The way you get your clients, determines the long-term sustainability of your clients.
• If leads or clients are provided for you then the clients have more allegiance to the company than to you. However, if you pursued your clients then the loyalty is to you.

Commissions¶

• Master carpenter parable (see below).
• Picasso sketch parable (see below).
• How much do you tip? 15%? We only get 5.75%.
• I get paid on the products, but I sell "Advice".

Overrides¶

“Profits are better than wages. Wages make you a living. Profits make you a fortune.” -Jim Rohn

• Don't sell the french fries, sell the franchise.
• Why be the stallion when you can own the stable?
• *Would you rather run the McDonald's training teenagers six days a week and earn $100,000 per year; or would you rather own the McDonald's and never set foot in it but earn "only" $80,000 per year?
• Would you rather be a high-priced attorney at $450 an hour, or own the entire law firm?
• I would rather earn 1% off the efforts of 100 people, than earn 100% off the efforts of one person.
• There are only 100 pennies in a dollar.
• Believe in everyone, count on no one.
• People are responsible for their own success. You are merely a tour guide.
• "You're just jumping from black to brown, instead of jumping into the golden rays of freedom."
• Are you really living, or just surviving?
• Are you too busy earning a living that you don't have a life?
• Most people don't love their job, they love their paycheck.

Story Telling and Story Selling¶

"A mind captivated by a story is relatively undefended and open to suggestion."

“Great stories tell hard truths.” ―Naval Ravikant

“Storytelling is the most powerful method we have for attracting and keeping the attention of others and connecting with them emotionally — whether personally or professionally. It is also the most compelling way to transfer knowledge. Facts are important, but unless they are woven into a compelling narrative, facts are easily forgotten.” —Ardath Albee

“It's hard to overstate this: The main use of facts is their ability to give stories credibility. But the stories are always what persuade.” ―Morgan Housel

Using similes, metaphors, anecdotes, illustrations, and asking open-ended questions, then really listening to clients' stories, histories and backgrounds can elicit valuable information. Highly persuasive individuals and many of the top financial professionals use this communication style intuitively, making deep human connections with their clients. From this deeper understanding, they are better able to serve clients' financial needs--and sell more effectively in the process. The authors explain present actual stories, including many by one of the greatest "storysellers" of all time, Warren Buffet, that can help financial pros tap into the "gut reaction" of different types of clients, all the while engaging both sides of the brain. A mind captivated by a story is relatively undefended and open to suggestion.

Storyselling for Financial Advisors by Scott West BOOK Put the power of story telling into selling financial products.

Storyworthy by Matthew Dicks BOOK A five-time Moth GrandSLAM winner and bestselling novelist shows how to tell a great story - and why doing so matters.

Stories to Sell the "Invisible".¶

There are three great fables that demonstrate the value of your advice: Bricks vs Pyramids, The Master Carpenter's Value and Picasso. All three can be found at Epiphany #46 - The Messenger is the Message.

Buckets story¶

This fable is from Robert Kiyosaki's book "Cash Flow Quadrant". It is a great way to explain the difference between being self-employed and a business owner.

Once upon a time there was a quaint little village. It was a great place to live except for one problem. The village had no water unless it rained. To solve this problem once and for all, the village elders put out a bid to have water delivered to the village on a daily basis. Two people volunteered to take on the task and the elders awarded the contract to both of them. They felt that a little competition would keep prices low and insure a back-up supply of water.

The first of the two contractors, Ed, immediately bought 2 galvanized steel buckets and began running back and forth along the trail to the lake which was a mile away. He immediately began making money as he labored morning to dusk hauling water from the lake with his 2 buckets. He would empty them into the large concrete holding tank the village had built. Each morning he had to get up before the rest of the village awoke to make sure there was enough water for the village when it wanted it. It was hard work, but he was very happy to be making money and for having one of the two exclusive contracts for this business.

The second contractor, Sally, disappeared for a while. She was not seen for months, which made Ed very happy since he had no competition. Ed was making all the money.Instead of buying 2 buckets to compete with Ed, Sally had written a business plan, created a corporation, found four investors, employed a president to do the work, and returned 6 months later with a construction crew. Within a year her team had built a large volume stainless steel pipeline which connected the village to the lake.

At the grand opening celebration, Sally announced that her water was cleaner than Ed's water. Sally knew that there had been complaints about dirt in Ed's water. She also announced that she could supply the village with water 24 hours a day, 7 days a week. Ed could only deliver water on the weekdays, he did not work on the weekends. Then Sally announced that she would charge 75% less than Ed did for this higher quality and more reliable source of water. The village cheered and ran immediately for the faucet at the end of Sally's pipeline.

In order to compete, Ed immediately lowered his rates by 75%, bought 2 more buckets, added covers to his buckets and began hauling 4 buckets each trip. In order to provide better service, he hired his 2 sons to give him a hand for the night shift and on weekends. When his boys went off to college, he said to them, hurry back because someday this business will belong to you.

For some reason, after college, his two sons never returned! Eventually Ed had employees and union problems. The unions were demanding higher wages, better benefits, and wanted its members to only haul one bucket at a time.

Sally, on the other hand, realized that if this village needed water, then other villages would need water too. She rewrote her business plan and went off to sell her high-speed, high-volume, low-cost, and clean water delivery system to villages throughout the world. She only makes a penny per bucket of water delivered, but her company delivers billions of buckets of water everyday. Regardless if she works or not, billions of people consume billions of buckets of water, and all that money pours into her mutual fund. Sally had developed a pipeline to deliver money to herself as well as water to the villages.

Sally lived happily ever after and Ed worked hard for the rest of his life and had financial problems forever after.

The moral of the story is, make sure you have something that works for you instead of you working for it.

Two Frogs Climbing a Tower¶

There once was a bunch of tiny frogs who arranged a climbing competition. The goal was to reach the top of a very high tower.

A big crowd had gathered around the tower to see the race and cheer on the contestants. The race began. No one in the crowd really believed the tiny frogs would reach the top of the tower.

Heard throughout the race were statements such as, "Oh, way too difficult". They will never make it to the top, Not a chance they will succeed, and the tower is too high."

The tiny frogs began collapsing, one by one except for those who, in a fresh tempo, were climbing higher and higher. The crowd continued to yell, "It is too difficult! No one will make it!"

More tiny frogs got tired and gave up. But ONE continued to climb higher and higher. This one refused to give up!

At the end of the race, all had given up climbing the tower except for the one tiny frog who, after a big effort, was the only one who reached the top!

All of the other tiny frogs wanted to know how this one frog managed to do it. They asked him how he had found the strength to succeed and reach the goal.

It turned out that the winning frog was DEAF!!!!

The lessons of these stories

Never give up, encourage others to do the same, and never discourage others.

There is enormous power in words. Your encouraging words can lift someone up and help him or her make it through the day. Remember that encouraging words can go a long way. Always be aware of the power words have, because everything you hear and read will affect your actions.

Be careful of what you say to others, and never listen to the negative comments or pessimism of others because they could cause you to give up and discontinue pursuing your goal.

Never use destructive, careless words to others, especially to someone who is down. Those words can cause deep wounds; they may be the weapons that destroy someone's desire to continue trying. Your unkind words can also diminish someone in the eyes of others, destroy their influence, and have a lasting impact on the way others respond to them.

Anyone can speak words that tend to rob another of the spirit to continue in difficult times. But it is a special individual who will take the time to encourage another. Be special to others. Encourage one another and build each other up.

Always stay positive and focused. Be DEAF when people tell you that you cannot reach your goal or fulfill your dreams! Continually remind yourself, "I can do this."

Two Frogs That Fell Into a Pit¶

A group of frogs were hopping contentedly through the woods, going about their froggy business, when two of them fell into a deep pit. The other frogs gathered around the pit to see what could be done to help their companions. When they saw how deep the pit was, the rest of the dismayed group agreed that it was hopeless and told the two unfortunate frogs in the pit that they should prepare themselves for their fate, because they were as good as dead.

Unwilling to accept this terrible fate, the two frogs tried with all of their might to jump out of the pit. The other frogs shouted into the pit that it was hopeless, and that they wouldn't be in that situation if they had been more careful, more obedient to the froggy rules, and more responsible. They continued shouting that they should save their energy and give up, since they were already as good as dead.

But the two frogs continued jumping as hard as they could and became quite weary. Finally, one of the frogs took heed to the calls of his fellows. Spent and disheartened, he quietly resolved himself to his fate, lay down at the bottom of the pit, and died as the others looked on in helpless grief.

The other frog continued to jump with every ounce of energy he had, although his body was wracked with pain and he was completely exhausted. Once again, the crowd of frogs started yelling for him to accept his fate, stop the pain and just die. The weary frog jumped harder and harder and, wonder of wonders, finally leapt so high that he sprang from the pit. Amazed, the other frogs celebrated his miraculous freedom and then, gathering around him asked, "Why did you continue jumping when we told you it was impossible?"

Reading their lips, the astonished frog explained to them that he was deaf, and that when he saw their gestures and shouting, he thought they were cheering him on. What he had perceived as encouragement inspired him to try harder and to succeed against all odds.

Tale of the Three Frogs and a Pail of Milk¶

Three young frogs, who were as yet unwise of the ways of the world, were out one day exploring their environment. They came upon a dairy farm and entered the barn, finding a pail half filled with fresh milk. Not knowing what it was, and being a little too curious and somewhat careless, two of them jumped into it.

Splash!

As they swam about attempting to get out of the pail, they found that the sides were too high, slippery and steep to reach the rim. The third frog, who luckily hadn't followed his comrades into the pail, looked down and shouted, "You'll never make it. Face facts and prepare to die!"

But since self-preservation is the first rule for animals, they continued to struggle for as long as possible. The frog on top again screamed, "You'll never make it. Give up and die peacefully." Unfortunately, one of the two struggling frogs did not continue and disappeared below the surface never to be seen again. The one remaining frog was determined not to give up, and he continued to fight despite the discouragement of his comrade on top of the bucket. He kicked and squirmed and squirmed and kicked until, at last, all his churning about in the milk had turned the cream on top into a thin film of of butter, which was just solid enough for him to gain purchase and jump out of the pail!

When rejoined by his comrade, he thanked him profusely for all the encouragement he shouted down to him. He would never have made it without his help.

The frog who survived was hard of hearing!

Indian's Internal Struggle¶

An old Cherokee is teaching his grandson about life.

"A fight is going on inside me," he said to the young boy.

It is a terrible fight and it is between two wolves.

One is evil -- he is anger, envy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.

The other is good -- he is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion and faith.

"This same fight is going on inside you -- and inside every other person, too."

The grandson thought about it for a minute and then asked his grandfather, "Which wolf will win?"

The old Cherokee replied, simply, "The one you feed."

Inflation Story¶

Your money is undermined by taxes and inflation, and your goal always should be to maintain purchasing power over and above the cost of living and all taxes.

There is the story of the man who was in a coma for 10 years. He woke and called is investment advisor on the phone and was told his investments had soared in price. His Coca Cola was up 10 fold; his General Motors up five times. Just at that moment the operator interrupted and said, "Please deposit $10,000 for the next three minutes."

You can't underestimate the impact of inflation over time.

Spoons - Heaven & Hell¶

A holy man was having a conversation with the Lord one day and said,

"Lord, I would like to know what Heaven and Hell are like. "

The Lord led the holy man to two doors. He opened one of the doors and the holy man looked in.

In the middle of the room was a large round table. In the middle of the table was a large pot of stew which smelled delicious and made the holy man's mouth water.

The people sitting around the table were thin and sickly. They appeared to be famished. They were holding spoons with very long handles that were strapped to their arms and each found it possible to reach into the pot of stew and take a spoonful, but because the handle was longer than their arms, they could not get the spoons back into their mouths.

The holy man shuddered at the sight of their misery and suffering. The Lord said, "You have seen Hell."

They went to the next room and opened the door. It was exactly the same as the first one. There was the large round table with the large pot of stew which made the holy man's mouth water. The people were equipped with the same long-handled spoons, but here the people were well nourished and plump, laughing and talking.

The holy man said, "I don't understand."

"It is simple" said the Lord, "it requires but one skill. You see, they have learned to feed each other. While the greedy think only of themselves."

Swimming On¶

What is the message of this story? Read it and decide for yourself.

Once upon a time there was a couple who had achieved many of their ambitions in life - they had found each other, they had become financially independent, they were healthy. Yet there was one main goal outstanding: They wanted to swim to Japan.

They reflected on this goal for a long time, and one day into the setting sun of the west, they set off. They were not used to swimming so they found it difficult. They were very aware of how heavy their limbs felt. They ached with constant effort, especially when the strong current was against them. Their perseverance and commitment were tested.

Gradually, however, their bodies got used to the swimming and they developed a style that became effortless and rhythmical. In fact, their pain subsided completely and they began to notice the water around them; for example, how it changed color as the days went by. In the early morning it would be clear and blue and in certain lights it sparkled emerald green. As the sun set it developed the rich warm colors of the evening sky. And they became aware of the creatures in the water, the small silver fish that swam with them in the day, the dark shadows that skimmed by them in the deep,. They became aware of how the sound of the waves changed as the water lapped their ears, and the felt the subtle changes of the weather as breezes turned into winds and died down again. They learned how to find food in the water, how to nourish themselves, and how to use their bodies effortlessly - they became one with the sea. They developed a refined sense of smell so that they could detect changes in the environment by the scent carried to them on the breeze.

They swam for days, and weeks and months with no sight of land. Then, one day on the horizon they saw the dark profile. They swam toward it and recognized the shoreline of Japan. As the approach nearer, the became quiet and thoughtful. Eventually they looked at each other and they knew. They understood. At that moment they turned back to the sea and swam on.

Shucking Oysters¶

Special Glasses¶

Imagine that you had special glasses that enabled you to see who was a blue and who was a red. Then, with reckless abandon, you would approach all the blues, and avoid the reds. Easy.

Now, suppose you had these glasses, and looking out into a large mass of people (perhaps at a sports event) you realize just how many blues there really are - everywhere! (Of course, there are many, many more red!). You have hope and feel as though you've already "won"!

Then, suddenly, you drop your glasses and they break! You can no longer easily discern blues from reds. You must go through the laborious process of prospecting, and asking questions in order to determine who is who.

However, it wouldn't bother you since you know there are a large number of blues! Your goal would be to engage in massive, brute-force high-volume prospecting to get as many blues as quickly as possible. And, whenever you encounter a red you would simply think: Next! and quickly move on!

Blue & Red Widgets¶

You are a machine that merely identifies blue widgets (studs) from red widgets (duds). Then redirects the blues into the blue chute, and the red widgets into the red chute. You don't care which is which.

Coin Story¶

Use this when your prospect is hesitating because they've "always done it this way". It usually stems from a fear of change. Resist the temptation answer at the end of the story. Let your prospect draw their own conclusion(s). Prospect: I've had this old annuity for 27 years, so maybe I should just keep it.

Advisor: I understand completely. Change is often uncomfortable and tradition can be very safe and comforting. This reminds me of a story of a man who, while walking down the street, heard coins dropping on the pavement. He turned to look, and realized that they were his coins!

As he felt in his left pocket where he always kept his change, he discovered a small hole. All his life he had kept his coins in his left pocket; as his father had taught him. But now as he realized that he still had a few coins remaining in his pocket, he had a dilemma: should he remain in the comfort of his old habit and go on loosing his coins in order to "do what he has always done" or, should he protect the remaining coins by moving them to his right pocket and break with tradition?

Laying Bricks vs Owning a Goldmine¶

A job is a lot like laying bricks. They give you a pile of bricks, you work hard to place one on top of another and they pay you a couple of bucks. Then they give you some more bricks, you work hard to place one on top of another, and they pay you a couple of more bucks. And you do it day in and day out. But no matter how long you do it, someone else owns the land and somebody else owns the finished product.

But owning your own business is a lot like heading into a goldmine everyday. You put on your hard hat with the light in front, you grab your pick-axe and swing it few times and you find a little nugget, maybe just big enough to keep you in business for a few more weeks. And on many days you don't find anything. Then finally, you swing that pick and hit a gold vein and you are set for life, because you own the mine, the gold and the final product!

You shouldn't be surprised when people get rich owning old mines, and that one will never become financially independent laying bricks for someone else.

Three Feet¶

One of my favorite stories comes from Napoleon Hill’s legendary book, Think And Grow Rich.

The tale revolves around a man named R.U. Darby, who during the gold rush era, caught the gold fever and went west to dig.

He staked a claim and started digging. After weeks of labor, he was rewarded by the discovery of the shining ore. He needed machinery to bring the ore to the surface. Quietly, he covered up the mine, retraced his footsteps to his home in Williamsburg, Maryland, told his relatives and a few neighbors of the "strike." They pooled money to buy the needed machinery and had it shipped.

The first car of ore was mined and shipped to a smelter. The returns proved they had one of the richest mines in Colorado! A few more cars of that ore would clear the debts. Then would come the big killing in profits.

Down went the drills! Up went the hopes of Darby and Uncle! Then something happened! The vein of gold ore disappeared! They had come to the end of the rainbow, and the pot of gold was no longer there. They drilled on, desperately trying to pick up the vein again—all to no avail.

Finally, they decided to QUIT.

They sold the machinery to a junk man for a few hundred dollars and took the train back home. The junk man called in a mining engineer to look at the mine and do a little calculating. The engineer advised that the project had failed because the owners were not familiar with "fault lines." His calculations showed that the vein would be found just three feet from where the Darbys had stopped drilling! And that is exactly where it was found!

I think about this story all the time because I frequently see financial advisors stop three feet from gold.