Broker Check

The Four Rules of the Game

August 05, 2020

Have you ever felt that others are writing the rules that affect your financial life?


Consumers are obligated to do business with financial institutions and government agencies whose business models follow four basic rules: 1) they want your money, 2) they want it systematically, 3) they want to hold onto it for as long as possible, and 4) they want to return it little by little when you want it back.


Here are some of key findings from a recently published study by The Economic Policy Institute on the growth of Growth of CEO compensation (1978–2018).  

  • From 1978 to 2018, inflation-adjusted compensation based on realized stock options of the top CEOs increased 940.3%.
  • The increase was more than 25–33% greater than stock market growth (depending on which stock market index is used) and substantially greater than the painfully slow 11.9% growth in a typical worker’s annual compensation over the same period.
  • Measured using the value of stock options granted, CEO compensation rose 1,007.5% from 1978 to 2018.

*Lawrence Mishel and Julie Wolfe, Economic Policy Institute, August 14, 2019.

CEO’s earn a staggering amount of compensation each year because their representatives are teaching consumers to follow The Four Rules of the Game.

Government agencies are funded by tax laws that mandate its citizens to follow The Four Rules of the Game.

Financial institutions, investment firms and insurance companies are teaching people to follow the The Four Rules of the Game.

Understanding this concept and how it applies to your money is the first step towards uncovering hidden costs that are covertly eroding your wealth.   

I suggest you contact me to schedule an appointment to learn how I can help you understand how the Four Rules of the Game apply to your Social Security benefits, your retirement accounts, your non-retirement investment accounts and all other financial products and services within your financial plan.