Mastering Money 6/10/21

Your job as an investor—or the job of the person you hire to manage your money—is to optimize gains, while minimizing losses.  Sounds easy, but today, you need a strategy built for the low interest rate environment of the 2020’s, not the 1990s.  Well-chosen stocks can be long-term sources of wealth creation, just like well-located real estate. This is true even if you buy at what seems like the worst possible time. For example, if you invested in an S&P 500 index fund in early October 2007, the next couple of years would have felt awful.  If you were still contributing to a 401k, however,  it turned out to be really good news. Your steady contributions kept buying more units of mutual funds at lower prices.  Even buying at the so called “wrong time” just before the 2008 crash, HIGH QUALITY  stocks delivered terrific gains by 2020—upwards of 300 percent—by just staying the course and not panicking. That said, in retirement you will be unemployed for 30 years or so. Therefore, a properly built financial plan will separate income capital from growth capital into a Smarter Bucketing system to protect against crashes. Today, we’ll get into the fundamentals of putting together a rock solid financial plan…for the LONG HAUL.  Don’t miss it….MASTERING MONEY is on the air!!!

Check out this episode!