Khun Warren Buffett, Dan Wilkin Warren Buffett, JIM discussed on Bob Tanem in the Garden
Cut your fees, maximize income and guarantee. It's going to last long as you live. And, of course, have that entire plan in writing. They do these things for their clients every day in the office and each week here on the radio show, we talk about it. If you have any questions today, called pound to 50 from your cell phone and say, the keyword money again. That's pound 2 50 say money. All right, let's see what Jim and Dan have in store for us today. Okay, Jim. Today we're going to talk about a subject titled getting out of your own way, and it really will be some of the common ways people we see have gotten in their own way when it comes to making the best decisions with their money because they hear so many different points of view so many different recommendations. They really don't know what to do. So here's one of them. That's that's your comment is here. And that is thinking you're great investor like Warren Buffett. Well, I don't know if many people think that way. I guess some people do. But you know, Warren Buffett's a different character, right? I'm he buys entire industry. So you know he could stay the course of long. He wants to because he he invest money like a pension fund. But when you're an individual, a consumer that is plenty for retirement. You are not a pension fund. You're not going to live forever, like a pension fund is supposed to live. So your investment strategies we believe have to be different because they have to be focused on a shorter time period. You have a maturity date. If you retire 65 you live until 85 or 90. You have to design your income plan around that time frame, not like a Warren Buffett would be doing Dan Wilkin Warren Buffett afford to lose 50% of his assets. Now? Yes. Does Warren Buffett need to use any disaster? It's Franken right now. Nope. Khun Warren Buffett's Am not going to touch us for the next 2000 years. Yeah, and you might live that long, You know? Hey, might you never know? So you have to look at it differently in when you look at what happened this year. When the market crashed almost 40% of the beginning of the year, February and March them from March on, it has rebounded about 67%. Let's say just to get back up, Steven, how many people come in here thinking they're great investors simply based on what they've earned from March until now. They don't I mean the people. We talked to our very frightened particularly if you're close to retirement, because in March when the market drop the Dow dropped 38%, right. Well, if you were tracking the Dow and the S and P 500, you could be down 30 35, maybe 40% and that's devastating that psychologically devastating if you're about ready to retire. I've seen a lot of people. Actually that came in and they're all they're doing is looking at their statements from the from March on. Me and they look and they go Look, I've made a lot of money. I think I'm doing quite well my management on money, So I think those people are kind of in their own way because they're just selectively looking at what happened when the market went straight up from March until this point, But we have so many things that could happen. You have the election coming up. God knows what kind of made him that's going to, you know, bring to the United States. You have cove in the second wave. Whether people believe it or not, it's there and it's hitting and it's getting hard. Just show yesterday with Texas. They had, like 560 beds in the house. That was taken with covert people, and they're putting people outside. Imagine having covert and be outside in a tent. Just don't like the thought of that. So that so many things that could happen, including reviving this economy. If we go into another cove, it locked down in many locked down. There's going to be a lot of jobs. They're gonna be lost again. We already have close to 30. Million people unemployed. What if it gets back up to 40 or 50 million had to get those people back in so You have to right now. Look at yourself as completely different than a great investor. You at this point in your life if you retire to getting ready to retire. Are no longer an asset accumulation mode. You're an asset preservation mode and income distribution in two distinct ways. You have to manage your money. One is aggressive, not worrying about the big losses. The second is conservative, making sure you never suffer a big loss, so you now can have a successful retirement. How about a second thing that we find people having a problem with that is allowing fear to make you keep all your money in the bank. Well, you know, we see that a lot a lot more than you might imagine, Dan because people have been concerned, you know, Imagine you were a 55 years old 12 years ago, and you went to the only crisis 09 crisis. And you could have lost 30 40 50% of your money. Well, that sticks with you and a lot of people got frightened and they backed out of the market. They went to cash often at the wrong time, and they did not get back into the market, so they've kind of suffered both psychologically, and they've also suffered because they haven't got you know adequate returns on that money for the last 12 years when they're trying to protect a principle, and that's where they're putting their money in the bank, where money markets because they think there's no other alternatives to reduce their risk. Because you're right. All they're doing is worrying about that 30, 40 or 50% lost they might have had in 2001 and two and then, like you just talked about 78 2009 and there worrying about that next one, because everyone knows it will happen. What A lot of people don't know is those types of losses will happen most likely based on history multiple times over the rest your life because every seven years.