I am not referring to a financial insurer but an insurance of another kind. As my hard disk crashed a couple of weeks ago, I tried to restore from my backup only to my dismay that the restoration did not work. To cut the long story short, the backup software used had a bug in it. After fighting fire for a really long time and nearly at the expense of my health, I concluded that the Seagate/Maxtor backup solution has defaulted on me. I had “insured” the lost of my data with that company only now to realized that it has “defaulted.” They also did not response to my technical support request. Felt really lousy. After making a post at hardware.com, I receive numerous comments. But these comments were made on hindsight. As the saying goes, investment based on hindsight is risk-free.  Here are some of my lessons that I had learnt which I wish to share with all:

• A promise is only as good as the ability of the promiser to deliver. In other words, nothing in this world is guaranteed. Whether it is a data backup solution or an insurance plan or an investment plan, or a fixed deposit nothing is guaranteed. We have been programmed and brainwashed to think there are things that are “guaranteed”. Who guarantees them? Who guarantees that the guarantor does not default? And then who guarantees the guarantor’s guarantor?
• I took for granted that the backup “will work.” Taking things for granted is the root of all evil. Get rid of this bad attitude!! Bad bad bad!
• Importance of diversification. I had over relied on one backup solution. I should have practice diversification perhaps having two or three different types of backup technology provided by different vendors. It was stupid of me to rely on one “counterparty”. Now that my “swap counterparty” has defaulted on me, I could only complain.
• There is nothing in the brand name. I had an impression that the brand name says something about the quality of the product. It was really a stupid idea I had. I should have known better. The Seagate/Maxtor restoration turns out to be running a linux-based distribution. In other words, a big portion of the code wasn’t written in-house by them. I am not against GPL but it shows that even big names also use methods used by “small names.” I developed linux-based embedded hardware before under a “small name” company. To cut the story short, branding means nothing.

The 4 points – nothing guaranteed, never take things for granted, importance of diversification and nothingness in the brand name can be applied to many things. Whether it is technology, car, house, an investment, insurance, wife, husband, kids, money, job, education. However, there are certain things that cannot be diversified like spouse (although some religion permits such diversification). But most matters can be diversified.

For those new clients who wish to approach me to do financial planning for them, please approach me in January. In the month of December, I’ll hibernate to work on restoring my “burn down house” and at the same time work on something great for year 2009. That “great thing” I am working on is also part of me practicing the 4 points mentioned.

PS I had a great vacation for the past few days. I went to Genting. It was a great vacation because it took my mine off this hard disk problem. However, Genting by itself is probably the worst place to go on vacation. It is overpopulated with uncivilized asian tourists. Indoor and Outdoor theme park have just too many people. The need to queue 45 mins for a 3 mins roller coasta ride spolls the ride itself. I expect most people to be in the casinos throwing their money away but no, apparently the crowd outside is overwhemling. If anyone wishes to acquire high blood pressure or wants to pick a fight with another person, go to Genting.