BEFORE The Stock Market Falls You Have To Buckle Up.

Make All Decisions Before You have to

Before I put the car into reverse and back out of the garage I say to my two kids, “are you locked in?”

The question is automatic.

I then wait to hear two little voices say, yes. If I only get one voice I stop and wait or ask the question again or look back to see what is going on.

“Locked in,” in my language means, Did you buckle your seatbelt? It’s how I start every car ride with my kids.

The time to prepare is before things get bad.

Well, things are bad in the stock market right now. And the time to prepare was months, quarters and years ago.

But it’s not too late. Because unlike a “fender bender” an investor can always make adjustments real time.

Last week I wrote the following:

  1. People buy stocks when they think the future is strong.
  2. People buy bonds when they are worried about the future.
  3. People buy cash when they are really worried about the future.
  4. People buy commodities… actually most people do not buy commodities as this asset class is very misunderstood.
  5. People buy real estate to own a house, get passive income or get money out of stocks/bonds/cash/commodities.

So, IF you find yourself with a big-box advisor that is telling you to “Stay the course.” or “Hold out.” or “This is just how it works sometimes.” or my favorite “I’m losing too.”

THEN you can still do something. Because your money is your responsibility. And you cannot outsource your responsibility. Yes, you can outsource the management but not responsibility.

You can take a little out of the stock market and put it in the “cash market”. You can move 10% to cash from stocks. You can look at your worst performing stocks, ETFs, mutual funds and cut the worst.

But you already know this AND knowing was never the problem.

Knowledge has never really been the limiting factor. And if that’s the case then make 2019 a year where you really get good stewardship over your money and wealth.

How do you get good stewardship? Work on yourself by getting trained.

Below are two of my favorite images that represent good planning. I want to be really clear with you, my dear reader. I’m not positioning myself as, Dad of the year. Or a dad or man or person that doesn’t have many flaws. I clearly do. And I’ve often talked about them inside of this blog. But the pictures represent how planning can be messy and take time…

… AND both of these images took A LOT of planning.

The first image below is a picture of my seven year old daughter in a hot-pink tuxedo with me in a matching pink tuxedo.

I spent many hours planning this event after I found out my daughter wanted to wear a hot-pink tuxedo to this week’s “dress to impress” day at her school. She asked me months ago if I would get one too.

“Yes. Of course I would.” I said without hesitation.

But it wasn’t just buying one.

She wanted me to walk her to school in our matching tuxedos. She wanted me to show up at 11:15AM in her class for an hour of parent/kid World Culture Day. She wanted Icelandic food because she was doing a report on Iceland.

And then she wanted me to pick her up in the afternoon wearing the same pink tuxedo.

Again, my answer… Of course.

But all of this took planning. And more than I thought.

Her first pink tuxedo had a stain on it when we got it. So we had to get another one. My suit had to be ordered early enough so I could make sure it fit. Or fit good enough.

And then I had to adjust my work schedule to walk, pick up and spend an hour in the middle of the work day with her.

I did. And it took planning.

And then there’s the next photo below.

This next photo took even more planning then the one above. The photo below took about 18 months to plan.

When I’m older, like in my 60’s, 70’s and 80’s I want to be able to say to my kids, let’s go skiing and they then say, Absolutely. Regardless of age, family or work.

I realized a long time ago if a parent has an amazing vacation home that their kids like to visit or if the parent can ski and makes a weekly ski holiday an annual event then their kids will always want to spend that week with their Dad (not an easy thing to do when kids, even adult kids, have life pulling them in a thousand directions).

So, 18 months ago I started planning.

Lessons. More lessons. And even more lessons.

Drives to the mountains. Packed snacks. Winter clothes. Lots of clothes. Renting skis. Returning helmets that don’t fit. Long lift lines. Carrying all the gear. Packing the car. Unpacking the car. Making sure we have everything. Making lists.

Season passes to the local mountain. Buying chains for the car tires. And then learning how to put on the chains.

And then there’s the actual “ski trip.”

I started six months ago planning how my son and I (my daughter is not interested yet) could have our first ski vacation at Whistler. Again, more planning. Passports. Time off work. Research. More research.

Last week was my first ski vacation. This one, the first of many was a father/son event.

Though it was just with my eleven year old. My littlest one is starting to show interest and even asked if she could take lessons. Yes!!! My plan is working.

So with that, my son and I headed up to Whistler for a three night/three day adventure.

And I couldn’t be more proud of him. Last year, we would maybe ski two hours and then he’d say, “Dad, I’m tired. Can we go home?”

But this year, we skied six hours straight the first day and seven hours the second day with no lift lines… And the third day we played (read: sledding, snow forts and snowball fights).

The picture above was taken mid-mountain on the Blackcomb side of the resort.

My message: Make All Decisions Before You have to and this means planning for things to go wrong, like returning pink tuxedos with stains or returning bad fitting ski helmets. Or making sure you have passports.

And for investing…

This means being prepared for stocks to fall, bonds to rise, cash to rise and even gold to find its footing. No predicting just preparing.

So when IT DOES HAPPEN you are, not only, not left holding the bag again, but you can participate in the re-ordering of the leading asset classes.

There is ALWAYS an asset class increasing in strength and being the place of stability for the investment world. ALWAYS.

And if that wasn’t enough great news, this might be.

There are only five asset classes.

And if you set aside real estate because that’s not really an asset class you move in or out of you are down to four asset classes.

And if you make it even easier, the investor only has two types of asset classes:

  1. Higher volatile asset classes = stocks & commodities
  2. Lower volatile asset classes = cash & bonds

And even easier: Stocks yes? or Stocks no?

There’s a better way. And its less work with more relief.

A way without having to “hold the course” or suffer through a big fall just because your big-box advisor doesn’t actually know how to best protect and grow money.

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

P.S. There’s a better way to invest. And I’m willing to talk to you one-on-one about it. But there really isn’t much time left this year. Get on my calendar and I can show you where you portfolio is leaking.

P.P.S. The Fearless Wealth Method is as much the art of keeping yourself sane in an unfair and overwhelming world as it is a way to protect your money and future. Take the leap of faith and let’s talk about what’s really going on with your money. This is the easiest way.

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