I’d like to ask you: how much of your money is currently in the market? All of it? 50%? 80%? Did you make a conscious decision to have that particular percentage exposed to market risk, or did it sort of “just happen?” Why am I’m asking?
As I’ve said before, the markets go up and the markets go down. How much of your life savings that is exposed to market risk is a VERY important consideration. That is why I strongly encourage EVERYONE to think of their money in terms of Red Money and Green Money.
Red money is good for accumulation and Green money is good for income. Just like speculation is ok for accumulation, not for income. Don't be caught gambling with the money that suppose to give you income for life.
Updated Podcast coming:
The very important questions we should ask ourselves are these: “What percentage of my money should be in Red Money? What percentage of my money should be in Green Money?”
When your money is in stocks, mutual funds, or bonds, losing or gaining is a matter of timing. Once you get closer to retirement you can’t risk the randomness of timing.
You should know that your financial professional has no clue what is going to happen to your money when he puts it at risk. The only thing that is certain is that he will make commissions even if you lose money.
When we were young we had no problem doing stuff with little to no thought of the consequences. Once we get older we still may take some chances but will probably do it with a bit more caution.
If you can convert some of your current retirement savings into something that would never lose value in the marketplace and still realize market gains with no market losses, would this be of interest to you?
If you’d like to learn how to step forward and never backward, call for our Safe Money Book and Safe Money Information Kit that could change your financial life for the better. Our number is 808-468-0552.