What Would You Sell to the Captain of the Titanic? (Or What Is a Good Financial Advisor’s Job Anyway?)

Imagine a salesman went to the Captain of the Titanic a couple of weeks before it sailed and said, “Captain, you need lifeboats. These are the best lifeboats for your ship. They’re solid, they’re proven, they’re easy to maintain, and very low cost. Your ship should have enough lifeboats to carry all the passengers and crew.

What would the Captain probably say?

“My ship is unsinkable. Besides, I already have a couple of lifeboats which we’ll never use.”

Now, this salesman has a business. He has a family that needs his livelihood. So he asks, “Captain, what do you think you need?

The Captain then responds that he’d like more Champagne to ensure that they don’t run out in first class.

Should the salesman just sell the Champagne and take his profit? Or should he try to convince the Captain he needs the lifeboats, risk losing the sale, and end up with nothing? This is one of the most common dilemmas faced by ethical financial advisors. What would you do?

If you’re interested in the lifeboats that actually were on the Titanic you can read about them here.

Bad Investments, Closed Minds, and Holding On to the Wrong Person’s Nuts

Monkeys are cute, fun, intelligent, and a little ridiculous. I only mention this because I required an opening statement for Read more

Ten Most Common Wealth Accumulation & Financial Planning Mistakes

If your goal is to be financially unbreakable you want to avoid these 10 common mistakes. Procrastination. This is the Read more

Every take off is optional, every landing is mandatory (Or why math doesn’t always align with real life) – Part 2

Real World Financial & Risk Planning Isn't Simple Math All financial planning is a reflection of most common real-world planning problems. It’s Read more

Life Insurance Quotes from All Major Canadian Insurer’s in Less Than 60 Seconds