Advertisements for the anti-depression drug Cymbalta® warn that:
“Antidepressants can increase suicidal thoughts and behaviors in children, teens, and young adults…”
Although there is plenty to dislike about Big Pharma, they are required to disclose the risks and side effects of using their drugs.
This is why Suze Orman and the financial industry as a whole have an advantage over Big Pharma, because financial gurus and planners can prescribe financial treatments without providing warnings on the long-term side effects of their recommendations.
For example: When Suze Orman recommends that you purchase term insurance, she has no requirement to disclose that after the end of the term you may not qualify for more insurance or if you do, it will likely be cost prohibitive. When making such recommendations, she is not looking at the overall effect of the recommendation. The true costs of the insurance, which must include any opportunity costs, are rarely mentioned. The recommendation is generally done in a vacuum, and relies heavily on the potential of investing the difference in the market place, where all could be potentially lost. This type of planning is usually void of recommendations that work under most, if not all conditions.
Think of what would happen to your plan if you died, became disabled or if the market crashes.
Does the plan you have cover all contingencies or does it rely on hope and having your fingers crossed that it will all work out? If you had a choice and if the net result of your choice still provided a LIFETIME of insurance coverage as well as increased wealth and at the same time you had a predictable outcome on all fronts…what would you choose?
How about IRAs and 401(k)s? Is there a warning that discloses that while you will receive short-term tax relief, long-term, you will pay ten times or more to the IRS in taxes? Is there a required disclosure showing that your wealth may be taxed away when you die, leaving only crumbs for your heirs?
Like allopathic medicine, most financial advice is symptom based. It rarely looks at opportunity costs and the long-term effects on the overall financial advice or recommendations. Traditional financial advice is one dimensional, non integrated and uncoordinated. Like allopathic medicine, the long term effect can be devastating.
To enjoy maximum financial health, a holistic view must be embraced, that takes into account your immediate needs, as well as financial health for an entire life… and beyond.
A holistic financial model discloses all the shortcomings and advantages as well as identifying gained or lost opportunities.