“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1”- Warren Buffet

Mindset of a Sensible Investor

  • Be Informed
  • Be Serious and have a purpose
  • Be Proactive
  • Do your homework and invest in what you know and understand
  • Do not Gamble
Definition of Gambling

1. Play games of chance for money; Bet
2. Take Risky action in the hope of a desired result.

Very Little Strategy 

Definition of Investing

1. An act of devoting time, effort, or energy to an undertaking with the expectation of a worthwhile result

Key Differences:

Gambling: The House Makes the Rules. Who is making all the rules in your retirement plan? The government and Wall Street.  
Gambling: No Limit to your Losses; No strategies to reduce your risk. What strategies do you have to control your loss inside your retirement plan?

Investing: Has Strategies to prevent total loss of risked capital. 

How Much Do You Know About Your Retirement Plan?

  • What are the plan fees, investment fees, and other fees?
  • What companies are your holdings in? What do you know about them?
  • What threats do those businesses have? 
  • How do they make their cash flow?
  • How do they compare to the competition?
  • Do you know why you own those holdings? 
  • Do you know your Vesting Schedule in your qualified plan?
  • How much does your employer match?
  • Do you have better options?

The key principle is to minimize Risk while maximizing Profits

Are you investing in your retirement plan, or are you gambling with your retirement plan?

We have been taught that a Retirement Plan is just a set-it and forget it. Sounds like you are just throwing money into a bucket and hoping for the desired result. This is gambling.

Saving money is not putting money into a retirement plan

A critical difference between “saving” and ”investing” is this: saving is what you do with the money you cannot afford to lose. You should have no risk of losing the money you are saving. Even with the money in your bank account, you have the risk of taxes, the risk of inflation, and the risk of opportunity costs. 

Is the money in your retirement accounts money you can afford to lose? Probably not. By “saving” in your qualified plan, you are paying fees to someone else. You take all the risk. This money is not liquid and you must pay a tax to use it. 

How enthusiastic are you about gambling with the funds you will need when you are no longer working? 

Stocks are part of a business. Would you own a business, run a business, or invest in a business without knowing anything about it? Of course not! But that is what most people have been trained to do.  

It’s time to take control of your finances and quit gambling with your money. 

Let us help you quit gambling with your retirement and start investing.

Contact us today!