Investing Rule #1: Never Lose Money
Did you know when you lose money, it takes MORE to get back to what you were at before you lost?
Many don’t realize this. The average American invests mostly in the stock market, through their retirement plan.
Year to date in 2022, the S&P 500 has lost over 22%.
So check this out.
If I have $100,000 in my retirement plan and I lose 22%, this means I will have $78,000 left.
Now let’s say next year, the stock market gains 22%…this means I made my money back right?
Not quite! A 22% gain on $78,000 only puts me at $95,160. I still don’t have my money back. Not to mention I will still pay fees even in the years I have lost money and in the years I still have not recovered back to where I was yet.
You might think, well that’s not so bad, but the issue is that if I simply didn’t lose money and kept growing year after year (which is possible), I’d be way beyond the $100,000 I started with.
I can play the game of trying to get back to where I was every few years (what most Americans do) or I can play the game of making gradual, sustainable progress each year without the losses and the ups and downs.
Recently, I lost money for the first time on an investment in over 10 years of investing. It was not my usual investment and it was speculative and not backed by real assets. I trusted the wrong person and relied on reports of past returns for future performance and the result was I lost money.
What did I learn from this?
I am never losing money again. I already know how to not lose money and in a time of economic surplus I violated those principals.
What didn’t lose?
My Sacred Account (this is a life insurance policy I use instead of a savings account that allows me to grow my money tax free and become my own bank).
I am putting all of my eggs in this basket and no longer investing in things that can fluctuate up and down in price and are not backed by real assets.
If you’re tired of the ups and downs of the stock market and trying to get back to where you were every few years, I want to invite you to grab a free copy of my book Blueprint To Financial Freedom by clicking here!
This book will not only show you the exact strategies used by the Top 1% of wealth historically and in the correct sequence, but it also comes with a course supervisor who will ensure you finish the book PLUS a free coaching call with my team!
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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.)
