Are you getting your financial plan in order? Between the holiday shopping and the crazy world we live in, who has time to think about investing? If you’re paying attention, you know about the cash hoarding by Warren Buffett. He’s sitting on a pile of Treasurys. Goldman Sachs predicts a three percent annual return over the next ten years. If you look at the yield curve, you can see why Buffett is licking his chops.
But what does this have to do with you? We all know we need to keep our eyes on our own work and pay no attention to those “making” money faster than you.
As the late great Charlie Munger said, “Here’s one truth that perhaps your typical investment counselor would disagree with: If you’re comfortably rich and someone else is getting richer faster than you by, for example, investing in risky stocks, so what?! Someone will always be getting richer faster than you. This is not a tragedy… Envy is a really stupid sin because it’s the only one you could never possibly have any fun at. There’s a lot of pain and no fun. Why would you want to get on that trolley?”
Your job is to invest so you can sleep well at night. Only you know what that means. Do you have the right mix of fixed income? Remember, when times get tough, it’s a matter of return of assets, not necessarily return on assets.
Action Line: When you’re ready to talk, let’s talk. Focus on your retirement life and not what the other kids are doing. Email me at ejsmith@yoursurvivalguy.com
