While preparing to leave for college I took the opportunity to ask my Dad what he thought my course of study should be.  He told me I should study two things; Philosophy and History.  ”Philosophy,” he said, “will teach you how to think, while history will teach you what to think about.”  It was the British philosopher Edmund Burke who first taught us that those who do not study history are destined to repeat it.

We learn from history that in times of national turmoil there is a great risk that people will be tempted to trade precious freedoms for guarantees of protection..  They become like the Israelites who, after being miraculously freed from 400 years of slavery, when things began to get difficult in the wilderness begged Moses to take them back to bondage in Egypt.

On a national scale we find our “benevolent” government leaders falling over themselves trying to pass bills that will protect us from our economic troubles.  Though their intentions may be noble (and maybe not) the ultimate result will inevitably be bigger government and less personal freedom.  We must be very careful about how much protection we are willing to accept.  A bird in a cage may be safe, warm and well fed, but he is still in a cage.

I am also seeing increasing offers from “benevolent” financial advisors whose intentions may be noble (or maybe not) who propose to save their clients from all investment worry.  Taking advantage of the current climate of fear, they encourage giving up future investment freedoms in exchange for guarantees of protection.  While safety is a good thing in investing, too much safety can bring its own hazards.  Putting too much money into products that lock your money up for seven to ten years or more can be much like climbing into a very small financial cage.  It may feel safe and warm for the time being, but when the economic sun comes out again, and history shows it always does, you may find that all you are able to do is watch others enjoy it through the tight bars of your cage.

Dan Wyson, CFP®  is author of the book “21 Financial Myths” and owner of Wyson Financial. 1173 S. 250 W #305 St. George 435-986-9525 - Securities offered through LPL Financial member FINRA/SIPC

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