I am going to start doing weekly podcasts for members in the Producer Power Hour. These are going to be discussing topics that are “Real and Relevant”. Lately I have had some questions on Holding Funds and what should be done. I personally have never set up a holding fund, but did research them and had considered them at one time. I think that the term holding fund has been very fitting for the many people I have talked with. It has become a place where people have put there money and it is now holding there. For many, it was a way to get massive cash flow each month without any requirement of daily activity.

Unfortunately, most invested based upon a realtionship or on trust, but there were others that invested on greed. The situtaion varies, but there are many common lessons to learn.

First, there are no investments in a so-called product, it is always in people. The investment is only as good as the word and integrity as the person involed in generating the returns or making the promise to pay. For many, I think they were good people, but they had no ability to provide such returns and were merely handing their money over to someone else.

Here are some questions to ask that could present some of the many lessons for those in this situation and for others to avoid the situation in the future. Why did you invest the money? Was there any reason beyond the rate of return? If you could go back to the day you were going to invest, what questions would you ask now? And here is a big one, if something were to go wrong, how would you know about it and what could you do about it?

The problem comes down to stewardship. If we are not good stewards then loss is inevatible. For many, the loss can increase someones stewardship long-term if it brings with it insight and even systems to resolve the problem for others. I know many of these people I have talked to are not getting interest, are dissapointed with the response or lack thereof from the people they have invested with, and are hoping that they get the money back. One of the most healthy things could be to just move on as if the money is not coming back. To stop dwelling on the loss and start moving forward as I said in another post this week. Your opportunity is held captive and so is your happiness if your mind gets caught in the same holding pattern as your money.

You may have made a mistake, but now you have a choice. If you are someone that has taken money from people to earn some override, you have a choice as well. You have a choice to communicate and be honest. I have heard about the check being in the mail and nothing shows up or that it will be resolved soon, but no solutions are given. Now is the moment of truth. Choose to be courageous so that people can heal and give up false hope. Be direct even if it is hard to hear, but at the same time display compassion without enabling. That being said, there may be people that will pay or have the ability to produce and overcome the adversity, but they are those that have the ability to produce greater then the size of the problem at hand.

Who have you given your money to? What is the plan they have to recover and to overcome? Are you involved? Can you help or offer value?

More to come

Leave a Comment