Inspired investing is looking within and doing what you love, then figuring out how to make money from it. Most investors look outward instead. They look for ways to make as much money as they can and little else matters. This is a guaranteed way to get into trouble. Profits and wealth are all subject to the law of diminishing returns. Thus, the more money you make the more you want. Satisfaction (from doing what you love) is not subject to diminution.
We see examples of this again and again. The former chief of Tyco is a perfect example. He had made 100 million or so dollars in recent years but this was not enough! His headlong plunge to have more and more not only has put him in an uncomfortable position, but may ruin a huge business in the process and cause all the stockholders to lose as well.
Outward looking investors are also subject to scams because they do not look within the deal. All they look at is the profit potential. This can create problems far beyond just a one time loss as the letter below which was received from a reader shows.
“Gary,I was an investor in what turned out to be a Ponzi Scheme several years back. Fortunately or unfortunately, I was one of the first round of investors and received money back from the scam. Recently, the scam has been discovered and the person involved is being brought up on criminal charges. He has also filed for bankruptcy since he is beingsued by all his investors. The Trustee that is handling the bankruptcy has notified me that I am responsible for returning all money that I received from the scam + interest even though I had no knowledge that it was a scam. I received the money several years backand the money has been spent. Therefore, I have several questions that I am hoping you can answer: 1. Can you recommend an attorney that specializes in Ponzi Schemes that may be able to help me? 2. Am I legally responsible for returning the money or is the trustee trying to bully me into paying it back? 3. Is there any type of time limitation on returning the money? 4. If I cannot repay the money will I have to file for bankruptcy? Thank you for any help you can provide to me!”
Here is the reply my attorney and eClub advisor, Joe Cox, sent.
“Because most of the dollars taken by the scam artist is considered stolen, then all dollars returned are considered stolen proceeds. A person, innocent or not, cannot get good title to stolen assets. You were returned stolen assets. That is the theory of the Receiver/Trustee. There could be some defense to this theory. Up to a good attorney. I doubt that the statute of limitations would have run by now. Especially on a criminal case. Bankruptcy is possible. It can be a disaster for you and should be taken only after careful thought. Your trustee can turn on you. He represents your creditors!”
So my dear friends, look beyond the dollar signs! Everlasting wealth comes from the ability to serve! When you begin to think about finance in this way, your investing can become truly inspired! Until next message, good investing!