The country is in turmoil and several people you know have been hurt by the falling economy. It’s easy to get caught up in the fear and uncertainty, even seasoned business people are a little unsure of their next step. But this recession is going to be so deep and so long that with just a little knowledge and planning you can come out of this storm happier, healthier ,and richer than you ever were before. There are three simple steps to really winning in a recession and I’m going to give them to you. Your job is to act on them because if you don’t there won’t be any love fest in your future, just pain you could have avoided.
Protect yourself from any potential lose in an unstable market.
This is the most important step. Most people who call themselves conservative are anything but when it comes to their money. If you have any of your money exposed to an uncertain market you are playing with fire. You are going to need that money when the market crashes for one simply reason, when nobody has any money the person who has even a little money becomes rich because they can name their price for real assets. Do you remember Carlton Sheets in the 80s on television talking about buying properties for pennies on the dollar. Prices are falling now but are no where near the bottom that they will go to when interest rates, taxes, unemployment, foreclosures, and inflation all increase at the same time. That is when you want to have a nice stock pile of cash sitting on the sidelines to grow your wealth. Get your money to high ground. High ground is not an IRA, 401k, thrift savings plan or any other qualified plan. All these plans have the potential of loses and possible higher tax rates in the future. These plans aren’t conservative they are risky and you won’t be able to make moves when opportunities come from the falling market. Don’t lose money when everyone else is losing money, can you feel yourself falling in love with the recession,yet?
Get a Real Financial Education and Advisor who understands the seasons of Money
Most people will lose a lot of money in the market because either they or their advisor does not understand the season we are in. We are not in the put all you can in the market because stocks are low season. We are in the I don’t know what the heck is going to happen season. When you are in this season you lay back and wait on your opportunities. Now would be a good time to come to my wealth workshop and dinner. If you want to understand the market, taxes, different types of investments and how to profit in this season that’s where you need to be. Most people simply are experts at what they do for a living and novice at dealing with money. Some of the best savers put their money in the riskiest places. Investors put their money in the market and received .08% over the last decade, even with vehicles paying guaranteed rates of return at 5% and above for the whole decade. How does that happen, poor financial education. Knowing enough to make guranteed returns while everyone is losing money, I’m sure that would give you a warm sensation all the way through this recession.
Take speedy and decisive action once you understand whats going on
About three years ago I hosted equity management seminars for my clients who had tons of equity in their properties. I was warning of an impending storm in the housing market and I advised them all to get their equity to high ground. Those that listened got the several hundred thousand dollars in equity out of their homes before the market crashed and are now riding out this market from a very secure position. Those that didn’t blew a huge opportunity that will not return anytime in the next decade. When the housing market began to implode my phone rung of the hook. I felt like Noah on the ark after the door closed. There was nothing I could do after that point but they all knew what they could have done before the market dropped. Most people will lose their life saving in this next downturn because of a failure to educate and act quickly not because of ignorance to the impending storm. To truly experience recessionary bliss you have to tak action. If you save what you have, make money without lots of risk , and benefit from the financial environment you will fall deeply in love with this recession.
I invite you to my next wealth dinner on July 29th @ the BWI Westin. Go to www.wealthdinner.com to register.
If you protect your money from this unstable market, get a proper financial education, and take speedy action, you will come out of the storm happier, healthier, and richer.