The Evolution of Investing

Where are you in the evolution of investing?

As an investor, are you walking upright or are you still swinging from the trees? What do you really know about the world of money?

People often think about the world of money but actually there is the world of “earning money” and the world of “growing money”.  Earning money and growing money have close to nothing in common except money, of course.

It is common for those who are good at earning money to be not very good at growing money, but they may be loath to admit it.

I bring up this very important distinction because many people have the experience that growing money should be natural and easy, when in fact, for the common man, the opportunity to grow money was introduced in 1980.

That’s right, except for the very privileged, the ability for most people to grow their money has been around for only 31 years. No wonder so many people get steered in the wrong direction; we are still cavemen when it comes to investing.

The skill of earning money is many thousands of years old. Since humans first walked the earth, while they were not technically earning money, they were making sure they had shelter, food, and clothes; they were making sure they were safe.  

Fast forward to today. We don’t have to kill mastodons to survive, but the DNA in us that trained us to hunt for our food has been transferred to working/earning money for our food, shelter, clothes and safety. Earning is hardwired in our brains.  

Growing money is NOT hardwired in the human brain.  

Now let’s go back to that 1980 date, when the skill of growing money started.

In 1980, the 401(k) was born. Before 1980 people did not have to worry about the growth of their money. Their company’s pension took care of that. So by the time they retired, they had a big enough pension to cover them for the rest of their life.

The idea of retired people going into the stock market on their own to buy and sell equities was foreign.

In fact, in 1980 only 7% of the working age population in the USA invested in the stock market. By 1990, that number had jumped to 77%…an 11X increase!

That 11X jump was all because people had been forced to go into the stock market and invest via their 401(k). Where did all these people learn to how to grow money?

One of the blind spots for many investors is their belief that they SHOULD know how to grow money.

I see this all the time in Silicon Valley. There are people who earn well and they try to take those same skills and apply them in the growth world and the results are usually bad or even disastrous. But when they learn that the skills of “earning” and “growing” are different they almost immediately change the way their money grows.

Following a proven investment system that takes your emotions out of investing is what will grow your money better than anything else you have done. In fact, many times when I work with new Private Elite Clients or Net Worth Advising clients they tell me how there is some sadness because they lost the excitement of trading and investing. But they see their portfolio making huge advances and they get over it.

If you find you are interested and would like to learn more about these strategies and skills that can start growing your money click here.

So if you find you are making yourself wrong that you SHOULD be doing better give yourself a break and realize that it has only been 31 years since the skill of investing has been introduced to the world. If you are calling yourself a troglodyte each time a stock moves against you, realize that you may have simply collapsed the “earnings world” and the “growth world” into a world that does not exist. You are still an investing caveman and you can evolve.

Learn the rules of the growth world and grow your money in any market climate.

Together, we are growing and protecting your money,

RC Peck

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