I actually didn’t notice…
On June 23rd, the British people voted to quit the European Union (EU), which they had joined in 1973. This is a lite version of Texas seceding from the United States.
The next day, back here in the good old USA,
- The Dow Jones Industrial Average lost 3.4%
- The S&P 500 lost 3.6%
- The Nasdaq Composite lost 4.1%
- The Russell 2000 lost 3.8%.
- The British bound dropped to levels not seen since the mid-1980s.
- U.S. equity futures went “limit down” as circuit breakers kicked in.
- European bank stocks were crushed by the most on record.
- The Nikkei 225 index lost 1,286 points, or a stomach-churning 7.9%
AND MY PRIVATE FAMILY BANK WENT UP!
My Private Family Bank only and always goes up, no matter what’s happening in the markets or in the news. It’s a safer environment than any regular bank account, but I can use the money anytime I want…while it simultaneously stays in my bank, growing, as I’m using it!
It’s Time to Get Your Wealth Out of the News Cycle
The people who make money selling you or managing your stocks, bonds, and mutual funds will say things like, “Don’t worry. The market always comes back.”
Well, let’s think about that. When the market fell 54% in 2008-2009, it wiped out a decade of previous gains, and it took a half decade to get back to where it was before the crash. A half decade just to get back to even…zero gain.
Can your plans for your money handle an unexpected half-decade pause?
As I write this blog, we are overdue for another major correction, according to the averages. Can your savings and investments take another hit?
I Call This “Timing Risk.”
It doesn’t matter what investment advisors say about “stock market averages,” and how, “over time” you’ll do well. For the people who thought they were going to retire in 2008, that’s just so much bull hockey.
Many of them are still working.
No one can consistently predict when the market will pull back. Can you? Can the people in whose hands you’ve placed your 401k or IRA money? Latest stats show that 62% of growth mutual fund managers UNDERPERFORM the S&P 500 average. In other words, they can’t even predict stock movements as well as…nobody (the unmanaged average).
So, if no one you know can tell you whether or not the market is going to have a major correction right around the time you’re going to need the money you’re “saving” in it, why are you playing that game?
Why are you risking another 2008 for yourself, where the money you’re counting on disappears right when you need it?
Take Your Money off the Green Felt Table
Stock and bond markets are like the craps and blackjack tables in Las Vegas. Investing in markets is not saving, it’s gambling. Do some gamblers win? Yes. Enough to keep the suckers in the game.
You work too hard for your income to let hired gamblers (brokers and fund managers) risk losing it for you, while they make their fees either way.
Am I biased? You bet your uncle’s smelly slippers I am.
I’ve gone blissfully through more than one 1,000+ point market drop since I started my Private Family Bank, and in almost every case I didn’t even know the drop took place until someone emailed to thank me for helping them start a bank of their own.
My sense of financial security is not tied to how my portfolio is doing today. It’s always doing fine.
Reduce Your Risk Profile
One reason I’m so focused on reducing market risks on the money you’re saving for your future is that you’re already exposed to so much more financial risk.
You probably don’t think about this, but your primary income stream is always at risk.
How many times have you come home from work and heard a news story about a major company laying off 10,000 employees? Those folks went to work that morning thinking, “I’m sure glad I have a nice dependable paycheck from a big company.”
And don’t you know someone who’s experienced an illness or injury that stopped them from working, at least temporarily?
You can’t count on your paycheck. There are myriad threats to its ongoing dependability. I hope none of them happen to you, but you can’t count on that. So why also put your savings at risk?
Especially when you don’t have to.
If You’d Like to Check Out Private Family Banking…
Get the new 2nd Edition of my book, The Banker’s Secret to Permanent Family Wealth, by CLICKING HERE.
Whether you get my book, start a Private Family Bank, or just go back to watching your favorite TV series, consider your current financial risk profile, and do what you can to take as much of your resources as possible off the green felt table.
That way, if Texans do decide to secede, you won’t lose your donkey…mule…you know what I mean.