Hi, it’s AK from American Wealth Builders
At this time of year, something starts to happen and it changes most people. Are you going to be impacted?
It’s the beginning of December: Christmas is about 3 weeks away; New Years is about 4 weeks away.
And just as you read that last sentence you KNOW what that means…
You’re going to be busy.
- Gift shopping.
- Holiday parties.
- School pageants.
- Family dinners.
- Last minute runs to the store for forgotten gifts or extra wine.
- Stringing up Christmas lights.
- Putting up the tree.
- Fighting the holiday crowds.
Not to mention all the last minute, end-of-year wrap-up at work before people take vacations for the last week of the year.
It’s a busy season, and it’s even busier because many things need to be squeezed into the first 3 weeks (since the last week of December is usually a write-off.)
As your calendar fills up, other things that have less urgency tend to fall off…
Things like investing. Or thinking about your retirement portfolio.
It’s not that investing and retirement portfolios are less important this time of year. We know they’re important to think about all year ‘round.
However, this “fall off” occurs because we only have so much bandwidth so we tend to deal with the most urgent stuff and everything else gets deprioritized and deferred until January.
We have only so much attention, focus, and energy to think about these things.
Unfortunately, those decisions to delay can really hurt our retirement portfolios. You end up prolonging how long you hold underperforming investments; you delay how soon you get higher returns or passive cash flow. (And you probably have to admit: those decisions to delay happen more often than they should.)
Every month we delay thinking about our investment portfolio is a month of lost returns and disappointing results, which can accumulate and compound over time to literally rob us of a more comfortable retirement.
But here’s the good news: there’s something you can do about it.
No, you don’t have to cross off one of your holiday parties.
No, you don’t have to skip your gift shopping.
No, you still have to go to your family dinner. 🙂
The answer is not to carve out more time into your busy December – the answer is to get a simpler investment plan.
You see, if you’re invested in stocks or funds, or if you own real estate as a landlord or a rehabber, you’ve got an ACTIVE investment.
Your real estate holdings are an active investment because they require to spend time chasing tenants or doing repairs.
And yes, your stock/fund holdings are an active investment because you only make money on them when you sell, which means you need to pay attention to what they’re doing and make daily decisions about whether it’s time to buy more or sell more. (And if you don’t make those daily decisions, you risk losing money if the market ever collapsed.)
Many people acquire assets that require some level of bandwidth to pay attention to (yes, even if you have a financial advisor taking care of you).
But, what most people really need (yet rarely realize it) is an investment that is dull, simple, predictable, and consistent. In other words, they need an investment that runs on autopilot and is managed by someone else.
All too often I meet people who are addicted to the rush of buying and selling stocks because they want to be like those high rolling day traders, yet they end up losing money or earning a dismal return because they really don’t have the bandwidth to do it.
They feel like their retirement is under their control, yet it requires so much bandwidth to manage that they end up getting stressed, burnt out, or unable to react when the market demands it.
Me? I want to think less about my investments, not more. I prefer investments that are BORING. Which means: I need investments that are high yield hard assets with predictable cash flow.
If you want to spend more time with your family this season, and less of your personal bandwidth on worrying about your retirement portfolio (while still enjoying a high-performing investment!) then a turnkey property might be the right fit for you. Give me a call to see if this makes sense.
And don’t worry about whether you have time this month; we can take care of it quickly and get you back to enjoying family time in no time at all!
Senior Wealth Strategist
American Wealth Builders