By ABIDZAR ALFAREZ @ Adobe Stock
You know Your Survival Guy isn’t big into making predictions. Everyone’s got them, and when it comes to money, no one remembers you when you’re right, and they never forget when you’re wrong. Not my cup of tea. Which is why I predict this year will be a good year to get your fixed income in order. In other words, build that moat around your portfolio. Get some margin of safety.
You read here at www.yoursurvivalguy.com about how bad stuff happens in the world, especially the manmade disasters. Look at the financial garbage floating around being referred to as “investments.” You have Baby Boomers wringing their hands, looking for a fixed income that meets their lifestyle needs without any consideration as to margin of safety. They build their portfolio around a new hope that everything will be ok and that this time, it’s different. It’s not.
From the beginning of time, men and women have been separated from their money on a regular basis. And when they are, it’s never their fault. Like an unhappy family, there’s always a different reason why their life was turned upside down.
Your Survival Guy studies the investor class because I speak with investors all day long. I know the emotions that go into retirement investing. I hear the war stories they tell me about relatives who are 65 years old and invest like they’re 25. This is not a game. When there’s no longer a paycheck to fall back on, the psychology of investing is terrifying: Things go south, there’s no money coming in—now what?
First, do not listen to the talking heads telling you how bonds aren’t good. Begin with Treasurys and understand gravity with the yield curve. Investors hoping to get more from that stone need to understand the risks. Unfortunately, investors learn their risk tolerance, like a food allergy, after the fact, not before.
Action Line: Make 2025 the year you get your financial house in order. Imagine how happy you’ll feel about your family’s future. Email me at ejsmith@yoursurvivalguy.com, but only if you’re serious.
Originally posted on Your Survival Guy.
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