Mr. Market, Benjamin Graham, Better Business Bureau discussed on Money Matters with Ken Moraif
And of course, we are very proud of that. And it is extremely important to us to be ethical and to be fully disclosing everything and honesty above reproach. And we believe that we are fiduciary also as a as a registered investment adviser. But at the same time, this does not mean that the Better Business Bureau is recommending us to be your financial adviser, just so you know, they're just talking about ethics. That's all. But anyway, we are back and we're talking now about our philosophy. So since we work with clients who are primarily as I mentioned retired or retiring soon who are over fifty our philosophy is that we want to protect principle. I that's job number one for us. And this is actually contrary I in in many ways to the notion of buy and hold, okay? Because buying hold says that you have diversified portfolio of quality investments, you rebalance done maybe prianti to keep them in the risk profile that you're supposed to be in. And then your job is done. We'll see the problem with that is that if you have a bear market such as two thousand and eight or why do k and many others, then you're violating the rule of rule number one. Which is don't lose money. Right. Protect principle. You're violating that rule. And that's a rule we have. And so therefore, we believe that you should have a strategy of buy hold and protect okay? Doubt about there is no doubt. So you want to protect your principal. And you know, one of the things that is always very nice for me is when somebody who's way smarter and way better at all this stuff than I'll ever be agrees or has agreed to it to what I our philosophy. Right. And so one of the things that we we have all of our advisers, go through is the charter retirement planning counselor designation. Okay. We we put them through that professional designation, which is to be a retirement planning counselor to be chartered in that in that regard. And so I'm going through the program myself, and one of the things that I came across was this discussion about different investment, philosophies that are good for retired people and one of them that I came across was exactly what we talk about. And I was like, wow. This is really cool. So this is Benjamin Graham, okay? So Benjamin Graham is the father of modern. Security analysis and his a lot of the things that he came up with are still used by a lot of money managers today. And so he he actually was born in eighteen ninety four died in nineteen seventy eight. And he was the leading contributor in. I'm reading here from the college of financial planning chartered a consultant retirement planning counselor booklet, but Benjamin gray was a leading contributor to the science of investing. He he entered a field where decisions were made on the basis of dubious tips hearsay inside information, and intuition and left it with a methodology worthy of true profession Graham, not only developed the analytical methods of modern security analysis used throughout the investment industry, but he pioneered the strategy of value, investing and Graham was extremely careful and thorough investor and he held safety of principle as the first requirement protect principle. I after that, you can do whatever you want. But that's the first one. And so he also, and I and I really find this to be interesting. He he there's a parable here that I want to read to you Graham, use a parable of Mr. market too ill. Straight importance of his philosophy. Okay. So the example that he used the stock investor is a partner in a business with other partners. One of whom is Mr. market, Mr. market can be very emotional and subject at times to extremes of euphoria and depression. I would say that's true. Each day. Mr. market offers the investors to buy or sell the investors stock to him. Sometimes Mr. market is your fork and some time and therefore will trade the stock at a very high price to his partner. The investor at other times, Mr. market is very despondent. And we'll trade the stock at depressed prices much below its true value. Mr. market does not care. If you take advantage of the investor, nor does he care if the investor takes advantage of him. It is up to the investor to understand these mood swings and used them to make smart profitable trades with Mr. market. Okay. So that's Benjamin Graham, and that is what we believe as well. Our belief system is that you need to be aware that Mr. market can become very depressed, and when Mr. market becomes depressed. He goes way way down as in SNP down fifty seven percent in the talk market crash of eight and forty nine percent in Y two K and other times, you know, we had. Big drops. And when Mr. market is depressed, you need to not be in the market taking a beating when that's happening. That's interesting. It is very interesting. That's why we believe you should have a by hold at protect strategy to get out when Mr. market is depressed because why rule number one don't lose money. Am I alone on this? Does anybody agree with that? So if you're retired or retiring soon, I think it is so important to preserve your principal. And we talk about it a lot on this show and with our clients, and that is that the five years before you retire after are the single in our opinion, the single most important decade of your entire financial life because if you lose forty or fifty percent of your money during that decade, many studies have shown that you could run out of money during your lifetime. Certainly you'll be difficult for you to retire. If you wanted to when you when you wanted to a lot about things come with that that we don't want for you. Okay. So here's what I'd like for you to go to our website. It's money matters dot net. Moneymatters dot net. And when you're there what you'll see is you can sign up for one of our seminars, or you can meet with an adviser what we want to do at the seminar is talk with you about social security when and how to take it. In fact, we're gonna talk about the fact that the IRS. Out. Yeah. Those guys they want attacks eighty five percent of your social security benefit. Did you know that eighty five percent? We'll show you how to beat it. If it's at all possible. We want to talk about your 4._0._1._K. We want to talk about where to get income. Do you have enough money to retire on? And we're gonna talk about reducing your income taxes five strategies to do that. We have a lot of information that we believe that someone who is over fifty retired or retiring soon would find beneficial. So if that's you money matters dot net is the website moneymatters dot net. All right. We're gonna take a break. And when we come back, we're gonna talk about how to pass on to your spouse, the fruits of your joint or separate labor. So stay tuned. This is money matters..