Entrepreneurs by their nature are risk takers. With increased risk comes greater reward potential. However, society, in general, is moving towards less risk and less reward. As a society, we are willing to trade security in the form of Social Security in our old age and Affordable Health Care in exchange for the freedom to choose. Instead we would be better off to embrace a more entrepreneurial mindset.
As an investor, you can choose to invest in 10-year Treasury Bills that are relatively safe but yield only about a 2.5% return. In contrast, you have the option to invest in a slightly riskier diversified stock portfolio and achieve an annualized 10-12% return. Most people choose to forgo buying T-bills and assume a little more risk for the substantially higher gain of the stock market.
However, while you are free to make the choice of buying T-bills or equities, you are not free to choose if you want to participate in Social Security, Medicare, or Obama Care. The more the federal government tries to create equality, the more it has to borrow from your freedom to choose what is right for you.
While you are free to move if you don’t like a particular city or state, you are less so with changing countries. Government is like Frankenstein; Once a new program is created, it is the destroyer of personal freedom.
What can you do to assume a little more risk and thereby preserve your freedom to choose?
