Geoff Saab - Low Risk Rules: A Wealth Preservation Manifesto

Copyright 2022 by Geoff Saab

All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, without the prior written consent of the publisher or a licence from The Canadian Copyright Licensing Agency (Access Copyright). For a copyright licence, visit accesscopyright.ca or call toll free to 1-800-893-5777.

Cataloguing in publication information is available from Library and Archives Canada.

ISBN 978-1-77458-174-2 (paperback)

ISBN 978-1-77458-175-9 (ebook)

Page Two

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Edited by Amanda Lewis and James Harbeck

Copyedited by Melissa Edwards

Cover design by Cameron McKague

Interior design by Taysia Louie

Interior illustrations by Michelle Clement

Indexed by Donald Howes

geoffsaab.com

To the heroes who battle tirelessly,

to all those who support them,

and to my team: Effie, Daria, and Adriana.

Contents

Disclaimer

Iwould like to clarify something important before you start reading.

A lot of what youre about to read is made up.

Not the studies or facts citedthose are true.

Im talking about any stories portrayed in this book that involve clients, friends, or other people Ive met or had interactions with. All of these stories are fictional versions of actual events. The characters are composites. The details are usually fabricated. If you think you recognize someone you know in any of the stories included in this book, its purely a coincidence.

Oh, and as the usual disclaimers go in books such as this that offer generalized thoughts on investment strategy: nothing in this book should be considered investment advice or a solicitation for business. These are my opinions only and do not reflect the views of anyone who employs me or associates with me on any professional (or non-professional!) basis. If you have a large portfolio to invest you should definitely hire someone smart and trustworthy to give you advice applicable to your own specific circumstances. There are many such people out there, you just need to know where to look. You might want to start with the awesome person who may have introduced you to this book!

Introduction

George J.W. Goodman

Entrepreneurs break the rules. Its what got you to where you are today. But holding on to what youve earned demands different skills.

Pour yourself a drink. Grab a seat. Lets talk. Im going to explain to you how the investment industry fails its clients, and what you can do to protect what youve worked so hard to build.

Ive been working with wealthy clients on both sides of the table in various capacities for over a quarter century. Ive been the accountant, the insurance guy, the financial planner, and the family office employee. Today, Im the portfolio manager. Ive experienced this industry from all anglesinside and out. And, frankly, Im not crazy about what Ive seen.

Helping someone manage their wealth is a tremendous responsibility. Because its not just about what your money can buyits so much more. Once you know you have enough to comfortably retire, the responsibility increases in importance. Because your wealth becomes about more than paying the bills. Now, its about building a bridge from your present to your future. Its about possibility, opportunity, and freedom. It can also shape the legacy you leave when your earthly days are done. It demands wise stewardship.

And yet, many in the industry are less interested in understanding how they can help you, and more interested in the opportunity to sell you products that serve to turn your wealth into their income.

So while Im writing directly to the entrepreneurthe rule breakerthis book outlines some rules you may actually want to follow.

It is a call to arms to empower you to take charge of your wealth, to create a life that is more meaningful to you, and to enrich the lives of your family and those around you.

It asks you to pursue a purpose-driven wealth management strategy that can create a legacy extending beyond your current needs and wants.

It makes the case against expensive, complex, and illiquid investments. And against an industry that pushes these products to unsuspecting clients.

It is a cry for rational and understandable investment strategies that support your confidence and conviction, increasing the odds of long-term success.

It is a celebration of equity investing, of owning pieces of successful businesses as a central element of wealth preservation and growth.

It will free your wealth from the shackles of the expensive and elaborate strategies too often pitched to the high net worth client.

My goal is to communicate a practical approach that resonates with entrepreneurs and business owners, simply and clearly.

Ultimately, Low Risk Rules is intended to call high net worth and family office investors back to basics. To turn away from expensive and illiquid investment products that enrich the companies selling them far more often than the investors themselves.

The end result of investing is a life lived with purpose, funded through wealth managed with intention. The material success afforded to you through your business isnt an endingit is a beginning, and your liquid wealth exists to be in service to everything that is possible.

When your perspective changeswhen you come to realize that your wealth exists to serve youyou will feel empowered to put your interests first. I call on entrepreneurs to fully own the fruits of their labor, and to not so easily hand it over to the salespeople.

Im going to help you see through the fog and reveal a path to get you where you want to go. I hope to give you the clarity you need to ignore the noise and move forward with confidence.

Im going to lay out an investment philosophy that, in my experience, resonates best with entrepreneurs.

Most importantly, Im going to introduce an investment approach that generates superior returns over time. A lower-risk approach that will paradoxically earn you higher returns than gained by those who continue to invest as if they are still trying to get rich.

Its time to arm yourself with the truth about risk and return. To learn a new language and a new set of habits. Lets go!

Shift Your Perspective

Seneca

This is water

Before we get started, Im going to ask you to pause and consider your water.

In David Foster Wallaces now-famous 2005 commencement address to the graduating class at Kenyon College, he tells the story of two fish swimming along. An older fish nods at them as he passes and asks, Hows the water? The two young fish swim on for a bit, until one turns to the other and asks, What the hell is water?

Everyone has their own water. For the entrepreneur, a state of elevated risk becomes second nature. A business that is flying high one month could be barely scraping by the next. Market conditions are ever-changing. Employees can be fickle, but you feel an obligation to each and every family your business supports. Even when youre at the top of your game, you know you could be knocked off tomorrow.