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Slow and Steady Wins the Race: Most People Can’t Handle Making Money This Way

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Remember when interest rates were zero? When stocks were booming? Now with tiny interest rate increases, the NASDAQ is down a third, bitcoin is in ruins, and cryptocurrency accounts are in lockdown. What gives? In a word: Speculation.

Life Comes at You Fast. Slow It Down with My Friday Email. It’s Free.

When the risk-free rate of return is nothing for years and years, and then investors stick their necks out with retirement money into areas where they don’t belong, it’s dangerous.

This isn’t to say there won’t be a rebound. In my observation, when investors start losing more than, say, 15%, the sell orders start flying. They can’t handle the losses, and in many cases, they head for the hills. They sell until they can sleep. Instead of riding that roller coaster, focus on being paid to be an investor, not a speculator living and dying on prices.

Action Line: Focus on dividends, and interest like you do for rents from your income property. Slow and steady wins the race. It’s just that most investors can’t handle making money slowly. If you want to try a different approach, get in touch with me.

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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 Zildjians. 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 (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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