Do you have a financial defense? When I talk about financial defense with potential clients, I usually start by asking them this question: "If you have a stock portfolio that loses 50-percent of its value, do you know what percentage you then have to regain in order to break even?"
Some people know the correct answer is 100-percent, but a lot of them will automatically say "50-percent" because that seems like the most obvious answer. Somehow, they forget that if you start with a dollar in the stock market, and you lose 50 cents, you must double the remaining 50 cents to get back to a dollar.
This is just one of the topics I recently covered in a series of educational videos I recently created. Most advisors don't talk about it much at all, and you certainly never hear it mentioned by brokers or the financial media. Unfortunately, that's because a lot of people in our industry are salesmen first, advisors & educators second.