THE SECOND SIDE OF THE COIN

WHEN it comes to the true value of financial matters whether in sales or being the customer or client ‘The Second Side of the Coin’ must be weighed for its value as well.

All too often we discover that the first side of the coin may sound extremely inviting, look exceptionally impressive, but that is just one side of the coin.  

We are all guilty I believe of wanting to make an important decision just based on one side of the coin, and that’s when we start paying the price because we did not look carefully, cautiously, and seriously what we are buying into.

The Bernie Madoff story reveals this truth when it comes to the second side of the coin.  Investors lost billions of dollars because they saw only one side of the coin.  Bernie’s Ponzi Scheme could have been avoided had the second half of the coin been given the proper scrutiny, valuation and scouring investigation.

Never make assumptions when it comes to your money, your business and the hard earned assets you have worked for.  That first side of a coin can and will destroy you if you do not look deeper what is on the second side.

I’m convinced that millions of Americans mean well every day when they make financial decisions and transactions, and yet they find themselves in a quandary by taking only the face value of an investment. 

Ever heard of a prospectus?  It comes from the Latin words specere, "to look," which is combined with the prefix prō-, "forward" — giving us a verb meaning "to look forward" to something that is coming.

Before investing in any investment today, know all the details of the prospectus—what you and your dollars are going to invest in.

I must say I avoid working with people who lean on their uncle, best friend or some guy they ran into at a neighborhood Bar B Q for financial advice.

Failing to ‘consider all the cards on the table’ is just too risky today….or any other day.

Seniors are a perfect target for being bilked out of billions of dollars each year in this great Country because they are swayed into a ‘deal’ that sounds too good to be true….and in most cases, it is.  This is why FINRA and the SEC are pushing financial advisors to make sure what products they sell are suitable, especially to seniors.

Older Americans lose an estimated $28.3 billion annually to elder financial exploitation (EFE), according to a new report from AARP, [June 15, 2023].

As I write this article old adages come to mind:

   Think twice before you buy 

   Be sure to look under the hood

   Don’t take only the face value

   Let’s see behind-the-scenes

   Carefulness cost you nothing 

   Don’t take someone’s word, examine the matter yourself 

   Shortcuts cut life short

   Make certain you know all the Pros and the Cons

In the financial world there is what I call, ‘stereographic analysis.’ Remember the rage some years ago for stereogram artwork?  

Stereographs consist of two nearly identical photographs or photomechanical prints.  The unbelievable artwork is paired to produce the illusion of a single three-dimensional image.  This would usually be viewed through a stereoscope.

Inside a colorful maze of designs exists an obvious picture of some animal, place or thing.

What you see initially is only designs of abstract-like art.  However, the second side of the coin, is that amazing picture discovered right before your eyes in the stereograph.

I cannot emphasize enough the second side of the coin; by taking it for granted it is going to cost you dearly. When we fail to seriously regard this litmus test, there seems to always be a cost along with it…..always a cost.  

And this is why I write about this truth.  I would suggest that you slow down, take a deep breath, rethink, and definitely reexamine every consequential decision you make—especially when it’s financial.  

Whether you are in the board room, or making personal decisions, or especially if you’re making a significant purchase you may have to live with it for years to come.

Just remember the second side of the coin often says it all.