Scared money makes no money

December 20, 2017 by Logan Lee

Advisors work to improve the financial future of their clients.

About the author

Logan Lee

Vice president, North American sales

He has been at Advicent for over three years and has enjoyed learning more about advisors and their businesses. He is especially passionate about helping advisors understand the importance of financial planning and client communication.

If I surveyed 100 people asking them what the top places were to “make money,” would Las Vegas be on the list? A significant amount would hopefully answer “a job,” “the stock market,” or a number of other legal places to make money. How do we fulfill the American dream? How do we get out of the rat race and make the money that will inevitably lead to our happiness?

One of the old sayings around Las Vegas is “scared money makes no money.” This is less true around the penny slots and truer in the blackjack and roulette areas of the casino. Here are a few ways that you can set yourself up for a bright financial future.

Saving early

If Las Vegas is the extremely risky way to make money and ultimately save for retirement, then what is the opposite? Some might say that the opposite is simply saving in their bank account, but this is not very active. It is also not the way that most of us will confidently reach retirement with enough money to truly feel comfortable.

Starting early is always better than starting late. For example, if you start at age 25 you likely only need to save about $5,000 annually to become a millionaire by retirement age; if you wait until you are 40, however, you have to save nearly triple that amount.

Scared money — money not working for you — makes no money. There is hope, however, when preparing for retirement. The financial advisor profession is the vehicle for your money. They are professionals designated to take the worry out of investments and everything money related. Here are some of the things financial professionals should discuss in order to take the fear out of making money.


No, I am not talking about how to grow your $100,000 into more money. This is not realistic for most individuals in their 20s or 30s. What I am talking about is an investment that is good for your future, for example buying a home instead of renting.

There are several different opinions out there surrounding home ownership. You need to discuss with your financial advisor if this is a good option for you. It is my opinion that this is a great investment. According to the Federal Reserve’s Survey of Consumer Finances, a typical homeowner's net worth was $195,400, while that of a renter’s was $5,400.


Take some of the fear out of life for your loved ones. I had always looked at insurance as a “not necessary.” That was until I got married and bought a home. The small monthly payments are easy to budget, and the value they provide is enormous.

Entrepreneur lists "Security and Assurance' as their top reason why an investment in life insurance is a good idea. Security is likely the first thing that comes to mind when you think of the pros of life insurance. You are assured in your mind that there is enough security for your family in uncertain situations.

Financial plan

So, we have a couple of investments as well as protection for our family in insurance. What is next? This is a great question to ask and one-step that most couples or individuals do not realize exists. Do not enter this phase of life without knowing how to use your money.

A financial plan helps solve this mystery and you should be able to get one from those who look after your money. If you are not offered a financial plan, there is a chance you should look to someone who will offer these services. It all starts with a plan.

Digital access

One major way most organizations are taking the fear out of investing is by offering a digital presence for their clients. Independent financial advisors, RIAs, banks, and insurance providers all have access to a plethora of tools that allow them to take their advice and push it out digitally. Make sure your advisor does this as well.

There is a huge emergence of digital wealth management firms, one key finding is that these digital changes are here to stay so traditional players need to determine if and how they want to approach these changes.

While it is true in Las Vegas that “scared money makes no money,” it does not have to be true outside of those city limits. Make sure that if we surveyed you about the top places to make money your first reaction is not something extremely risky! Smart Investments, insurance, and a financial plan all consumed digitally can help make you money. That is the plan, at least!

To learn how Advicent technology empowers financial advisors to increase ROI, click here.