Your Survival Guy

Preparing your investments and family for when disaster strikes.

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A Category 5 Strike Devastates Your Portfolio

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By Sasa Kadrijevic @ Shutterstock.com

Take note of this post I wrote in September of 2017, it’s as true now as it was then. 

What if you and your family are not completely prepared, well in advance, to put a force-field around your life’s resources? That’s the reality we live in today.

No matter if we live in a connected world with information at our fingertips or in a desolate fishing cabin in Alaska: disasters happen. You need to be prepared. Because you’re never, ever, fully prepared for what can come your way. You just hope you’re in the best position possible for if, and when, it does.

From a portfolio perspective, what does that mean to you and your family? It means exactly this: Have you done what you must do to protect your portfolio? Have you figured out how much you can stand to lose (it’s less than you think)? Have you explored every possible avenue to protect your portfolio so you’re the one helping your neighbor? How do you know the answer to these questions? Well, a good place to start is to ask yourself “Am I really cut out to be an investor?” It’s a simple question.

Are You Cut Out to Be an Investor of Your Own Money?

It’s a simple question with an important distinction. Whether you’re cut out to be an investor isn’t the same as whether you are cut out to be an investor of your own money. Think for a moment on this. Are you a relaxed investor? Investing shouldn’t be stressful. Think back to when you did something hard such as played music, took an exam, or played a sport. You probably had the most success when you were relaxed and weren’t pressing too hard. You let whatever you were doing come to you so to speak. That’s how you want to be as an investor.

Anyone can buy stocks. Anyone can sell stocks. But the real question is what are you like when a Cat 5 strikes your portfolio? Everyone is different, yes, but let me tell you, my phone does not ring in times of trouble. Clients I work with are prepared.

No One Likes Losing Money

You can imagine, I have hundreds of conversations with investors like you every month. And believe me they are just like you. We are similar, especially when it comes to money–I have yet to talk with anyone who likes losing money—a reality that is realized too late.

How do you avoid losing money? Well, you need to know you can be completely and utterly calm with your portfolio when a Cat 5 strikes.

Win the War by Avoiding the Battles

Yesterday, I was talking with a successful client who lives in Alaska. He sold a business. He’s retired and leaves next week for a fishing trip in Mongolia, stopping for a couple of days in Hong Kong. He said to me, “You know, E.J., I figured out a long-time ago that I’m just not cut out to be an investor.” Mind you, this is an intelligent individual. He knows a ton about investing and attends investing seminars every year just to keep up with the industry. He realized a long-time ago that he wasn’t the best person to handle his money. During our conversation, I reminded him that we’ve constructed a “win the war type of portfolio.” And he said that’s why I’m with you. And before he hung he reminded me: “I wouldn’t mind avoiding a few battles either.”

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com