Mohamad Hamod
Jenifer Fennel
English 1110
How a Financial Pro Lost His House
The purpose of "How a Financial Pro Lost His House" is to explain to the audience that taking the wrong or risking decisions will lead them to damaging their lives. Risk is an arbitrary concept, until you experience it. Carl Richard noticed himself focusing more on the consequences of something going wrong than just the probability of that happening. He also explains to readers that the process of making financial decisions is about more than building a spreadsheet to calculate the answer, because life rarely fits cleanly not a spreadsheet. The author stated "There are many stories these days of people who lost their financial bearings during the housing boom and …show more content…
Richard was an adviser who was being paid to advise and help people make better choices. Since the crowd kept buying houses, richard thought it seemed safe to follow the crowd, "I knew from my work as a financial adviser that following the crowd could be costly. But like everyone else, I felt safer in a crowd" (Richard, 2011). Richard explains that when everyone else in our closes circle is behaving in a certain way, we feel safe if we are taking the same approach and making the same …show more content…
The mistakes that he and his family learned from was after he lost his house in Las Vegas. That house had cost them price of $575,000 and they borrowed 100 percent of the purchase price from a mortgage. The reason Richard and his wife bought this house for that price is because he was following the crowd like everyone else which he felt safer. Although he knew from his work as a financial adviser that following the crowd could be costly. The reason why Richard wrote this article is because as a financial advisor his job is to warn people from doing stupid mistakes as he did. He wants them to know that not all financial advisor’s are certain of every financial situation and they could fall into taking wrong decisions. Richard was worried about what others think of his behavior, which is one reason he haven’t shared his story with many people until recently. After two years of him and his family losing their house, all Richard has to do to remind himself of that is to remember what it felt like to stand outside the kitchen window two years ago, looking into his life, and thinking that he might not get it
Jenifer Fennel
English 1110
How a Financial Pro Lost His House
The purpose of "How a Financial Pro Lost His House" is to explain to the audience that taking the wrong or risking decisions will lead them to damaging their lives. Risk is an arbitrary concept, until you experience it. Carl Richard noticed himself focusing more on the consequences of something going wrong than just the probability of that happening. He also explains to readers that the process of making financial decisions is about more than building a spreadsheet to calculate the answer, because life rarely fits cleanly not a spreadsheet. The author stated "There are many stories these days of people who lost their financial bearings during the housing boom and …show more content…
Richard was an adviser who was being paid to advise and help people make better choices. Since the crowd kept buying houses, richard thought it seemed safe to follow the crowd, "I knew from my work as a financial adviser that following the crowd could be costly. But like everyone else, I felt safer in a crowd" (Richard, 2011). Richard explains that when everyone else in our closes circle is behaving in a certain way, we feel safe if we are taking the same approach and making the same …show more content…
The mistakes that he and his family learned from was after he lost his house in Las Vegas. That house had cost them price of $575,000 and they borrowed 100 percent of the purchase price from a mortgage. The reason Richard and his wife bought this house for that price is because he was following the crowd like everyone else which he felt safer. Although he knew from his work as a financial adviser that following the crowd could be costly. The reason why Richard wrote this article is because as a financial advisor his job is to warn people from doing stupid mistakes as he did. He wants them to know that not all financial advisor’s are certain of every financial situation and they could fall into taking wrong decisions. Richard was worried about what others think of his behavior, which is one reason he haven’t shared his story with many people until recently. After two years of him and his family losing their house, all Richard has to do to remind himself of that is to remember what it felt like to stand outside the kitchen window two years ago, looking into his life, and thinking that he might not get it