There’s nothing wrong with making money slowly if for no other reason than this: When you make money slowly, you respect it.
Your Survival Guy can’t tell you how many times I’ve seen this simple concept taught the hard way. Because, like it or not, money lessons will be taught. It’s just a matter of when.
There are plenty of real-life tales of how one’s golden goose got cooked. It’s why I smile when a client tells me about raising chickens at his farm and stocks in his portfolio to keep those eggs and dividends coming.
There’s plenty of truth to the phrase “easy come, easy go,” especially when it comes to money. When you make money slowly, it’s not easy. It’s the result of one’s effort over a lifetime of work. You might feel like you won the lottery, which can be our secret, but there’s no way you want to start over again.
In my conversations with you, our most common denominator is that you just can’t afford to lose it. Hitting your retirement life with no paycheck, and the prospect of drawing down your savings can be downright scary. Because you know you can’t afford to lose, but you also want to have the retirement you deserve. That’s where risk comes into the conversation.
There are few free lunches in investing. Asset allocation may be one of them. Because investing with the right asset allocation for your risk tolerance is more of an art than a science. Most investors realize, after the fact, that their tolerance for risk was much lower than they thought. That’s no way to live.
Action line: When you are ready to talk about your efficient frontier, let’s talk. Email me at ejsmith@yoursurvivalguy.com.
Read the entire series here.
