Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
–Paul Samuelson
The Stock Market is designed to transfer money from the Active to the Patient.
–Warren Buffett
The four most expensive words in the English language are, ‘This time it’s different.’
–Sir John Templeton
September 2021 was another month when “the sky was falling” according to the financial writers. Large stocks dropped by 4-5% and you would think we had the crash of 1929 if you listened to the news. We have just become so used to the market going up, we forget the market has risk. However, don’t lose site of the long term per the quotes above. The market has risk but in return for that risk the great companies of the world combined have always delivered a long term return beyond inflation whereas the nice safe bonds have consistently delivered a return very close to inflation. As usual, I don’t have any inside track to what the market will do in the short term. However, I always enjoy sharing some recent clips to help you keep things in perspective.
- For those who think they can beat the odds in investing, sports, or anything else: Just 1.6% of college football players make it into the NFL and just 0.8% of women college basketball players make it into the WNBA.-Barron’s, September 3, 2021
- For the young it is time to take a hard look at the future: According to a new survey, half of millennials (born between 1981 and 1996) believe that they will need $300,000 or less in savings to retire comfortably- a fraction of what most estimates say they will need. -Acorns, August 10, 2021
- What profession should your children choose? Thirty-three percent of new jobs in the United States are for occupations that did not exist 25 years ago.-Fortunly, June 28, 2021
- Have you ever heard of this little company called AMAZON? One out of every 350 Americans – or one out of 153 workers in the U.S. – is now employed by Amazon. The company’s total of 950,000 U.S. employees exceeds the 873,000 workers of the entire residential construction industry.-BusinessInsider, July 30, 2021
My objective with these tidbits of info from the media is simply to give you a sample of things that have an effect on your portfolio and your life every day. It always helps us better understand the future when we look to it with the benefit of the knowledge from the past.
Now let me switch gears and talk about the next generation. Americans age 70 and above have 27% of all U.S. wealth. This money will fund their comfortable retirement but most will transfer to the next generation with a small percentage going to charity. Without good guidance those heirs will most likely get it wrong. I saw a statement in a Kiplinger letter that said “The first generation makes the money, the second spends it and the third sees none of the wealth.” With this in mind I would urge all those who earned the wealth to start a process of educating your heirs on how to manage wealth and the duty to help those less fortunate. A good start is open communication with your heirs about what to expect along with teachable moments and then start to share in decision making so they understand the core values, goals and how to get there. If you think we can be of any assistance in developing that process for you please feel free to come in and let’s talk through the process.
Swinging for the fences with your retirement is a game of chance and we will never take that chance. We do everything we do with you in mind to ensure you and your loved ones have a long retirement where you can maintain your quality of life. We don’t take your trust lightly. Our clients are also our friends and we treat friends the way we would want to be treated. THANK YOU FOR YOUR TRUST!
Call us to discuss anything. Our mission is to serve you so well you will never need to look elsewhere. If you know of someone who might benefit from our services, please give them our contact information or share a copy of this quarterly update with them. Our practice is expanding and referrals continue to be our primary source of new business.
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