Hi Folks! Welcome to my first newsletter. Nothing fancy here, just some observations from my bat cave on the world in 2015.
First, what happens when a party ends? No fan fare, no fireworks, just the recognition that it’s time to leave and let the hosts and hostesses clean up the mess and move on. But, when we were teenagers and young adults, we often only realized the party ended when the cops showed up. If you were doing something questionable or even illegal, that meant a late night phone call to Mom and Dad to bail you out if things really went haywire. I’m fortunate that I had the good sense (and fear of Mom and Dad!) that I always left the party early. As my wife and sons can attest, I still do that to this day. So how does this relate to the world we live in?
I recently asked a room of seminar attendees if they thought that the value of their investment holdings would increase over time. Every person in the room raised their hands. No surprise, really. What’s the reality? I won’t quote the dismal statistics on individual investor performance- you can google that information to see how horrible the average investor does. Certainly nowhere near the often quoted 10% return in the market over time. Why? Because of the same emotion you got as a teenager when the cops showed up. PANIC.
Everyone knows the “cops will show up” with the current stock market reaching new highs each day. Can you afford to wait until then? Is it worth 40% to 70% of your nest egg to “bail” yourself into being penniless and broke? Doesn’t sound like a good retirement strategy.
Do you see yourself in this picture? If so, we can help you leave the party in time, before disaster strikes. Please know we’ll always be here for you!