How I Lost Money Investing & What I’m Doing About It
I recently lost some money in an investment and I’m going to tell you about it here because I believe this is a real conversation that doesn’t get talked about enough.
If you’ve never lost money, it sucks.
I did all of my due diligence.
I knew the person I was investing with really well.
I asked for historical returns.
I asked for all of the legal documents for the investment.
I checked my statements regularly.
I made sure I got referrals of other people who were investing in this same deal.
I periodically checked in with the fund manager to make sure everything was going okay.
And I still lost money!
So here is how I’m handling it.
#1: I’m not waiting to make my money back. This is the #1 mistake I see investors make when they lose. They believe if they just wait long enough, they will make their money back…from the same place that lost it. I don’t see it this way. If this fund lost my money, I am not going to rely on them to help me get it back. If I got surgery and the doctor messed me up, I am not going to go back to the same doctor who messed me up to have him fix it. I am taking my own measures to reproduce what I lost. If I somehow get my money back, that’ll be a nice bonus. But I’m counting on myself to earn and save my way back.
#2: I consider an investment loss as a debt to myself. I invested. I made that decision. I knew there was risk. I put my money in. Nobody put a gun to my head and made me do it. So I look at it as debt that I need to pay back to myself. Just like debt, I’m going to set aside a portion of my monthly income to build that amount back up. I can and will get there. It might take some time but the alternative is to not do so and be less financially wealthy and less responsible for my decisions.
#3: I adjusted my investment rules. I have updated my personal rules of investing. In this case I invested in something that has no real asset backing it. It has no intrinsic value in other words. I verified everything I possibly could and still lost money, which means I simply invested in something that at the end of the day I cannot inspect for myself or have control over. I won’t do that again. I also relied on an “expert” as the source of production for the investment. I am no longer investing in funds where I must rely on the skills and judgement of a person for my returns. I will only invest in physical assets that are fully backed and that I have a high degree of control over.
So where am I putting my money now?
- Myself
- My company
- My Sacred Account (life insurance)
- Physical gold
- Seller finance real estate
I will pay myself back using Life Insurance and Gold.
I will invest in myself and my company to increase my income and make back what I lost.
I will use Seller Finance real estate to generate passive income from here on out and never lose money again.
I have been investing since I was 21 years old and have never lost money until now.
It’ll never happen again, I can tell you that.
To learn more about these strategies, I want to offer you a free copy of my book Blueprint To Financial Freedom.
Click here to order it!
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To Purpose, Wealth & Freedom,
Jerry Fetta
Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.
Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.
Learn more at www.WealthDynamX.com
(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)
