Holding Fund Lotto
In Utah there were many people that got involved with investing in “Holding Funds”. If you did not, you can learn from this post, but if you did the lesson will be much bigger- that is if you are willing to try this on.
It is interesting how people became philosophical “producers” when they were able to pull some equity out of a home and then put it in a holding company. Somehow, for many, they felt that this was personal production and they began to talk the talk of a producer. The simple definition of a producer is: one who creates more value then is consumed. To really be a producer though, it is critical to create value in a unique way using your Soul Purpose. “Passive” income doesn’t necessarily make someone a producer, in fact, many times it has caused laziness and was merely gambling. That is why I call it the lotto. Pull out some equity in a home, give it to someone else and there you go- freedom.
For so many, the talk of principles and producing was social programming. Each person’s Human Life Value wasn’t necessarily increased, the gamble just paid off- temporarily. Now, the language of the producer has been abandoned by many and the mentality of scarcity is the rule. I have seen forums where anytime that someone is being a victim there is a pouring out of compassion from other people posting , but as if that person had no responsibility or choice in the matter.
So what can be done now? First of all, I recommend people mentally let go of the money that was put into the funds. So many times people get caught up on what is wrong and hoping that it can be fixed rather than focusing on opportunity and what is possible moving forward. For many this will be a massive and painful lesson in gambling, control, Soul Purpose, and chasing returns to name a few. It is a very expensive tuition for many, but I applaud those that are moving on with creating value in the world and choosing to look at what can be done now and in the future rather than focusing on what went wrong in the past.
It is interesting to see the different sides-those that learned and are moving on and those that were greedy and now are pointing the finger to everyone else. I feel for the people that have lost trust due to this, but I respect those that learned from this. I have lost significant money in two investments in the past. The first was several years ago. When it was lost, the person I had invested with was not in communication with me and I began to go into scarcity and get really angry. It impacted my happiness and really left me being a person that I did not want to be. For a moment I wanted revenge. I wanted to trash the person’s name and I actually called and left a very harsh message. What did this have to do with happiness, opportunity, abundance, and love. Kindness is not weakness. The message isn’t to lose any accountability or to be wasteful; it is to live a life you love.
What changed for me was when I actually called the individual I invested with and apologized for my behaviour. Then I took a stance of creating value for him. I asked him questions to understand his situation. He had more clients than he had real estate projects to put them in. At this point I referred him to three people I knew that had plenty of projects. The tone of the conversation changed and so did our relationship. He took full accountability and is making monthly progress in repayment to me.
One of the greatest parts of this experience is that I created a tool for due diligence with investing. It has 18 questions that are critical to answer before making any investment. I wrote it looking at mistakes I had made in the past and asked “what would I have asked, knowing what I know now”? This tool is much more valueable than the the money I had lost. The key was to stop dwelling on the past and start looking to what I could do productive in the present. What was exciting about the future- this is what inspired me and is where I let go of anger, resentment and stress.
It wasn’t the easiest thing, but it increased my stewardship and even my wealth after a few years. We all have lessons to learn. Do people care more about your money than you? If not why give it to them without managing your risk? Learn the lesson and live. Was your life good the day before news you weren’t getting interest? What would it take for it to be good today?
More to come on the recession and personal investing.
Today I am in St. George, Utah presenting “Economic Certainty in Uncertain Times” with Mike Isom. This is the original symposium that was written by Les McGuire, my friend and business partner that died in a plane crash just over a year ago.