Most people view insurance as a "grudge purchase"—a necessary evil. However, having vast experience in the insurance sector, I see it differently. It is the science of Risk Transfer.
In the pursuit of wealth, the "Optimal Factor" isn't just about how much you make; it’s about how much you keep when the market turns.
The Asymmetric Downside Wealth is often destroyed by "Black Swan" events that weren't accounted for in the business plan. To build a resilient financial life, you must apply the Insurance Mindset:
Transfer the Catastrophic: Use professional tools to offload risks that would wipe you out.
Retain the Manageable: Self-insure against the small things to keep your capital working.
The Margin of Safety: Just as an insurer maintains reserves, an "Optimal" business maintains a liquidity buffer that allows it to stay aggressive while others are retreating.
The Takeaway: Defense wins championships. By securing your floor, you give yourself the psychological and financial freedom to reach for the ceiling.