Wealth For Life with Denver Nowicz

Categories

Investing

Archives

2019
January

2018
December
September
August

2017
September

2014
October
August
July
April
March
February
January

May 2018
S M T W T F S
     
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

Syndication

Is your retirement plan based on one thing happening? The one thing is the stock market going up.

Even if you are decades away from retirement, wouldn't it be better to have strategies that work when the market is up down or flat?

What if you are 40 years old and you have a market decade like 2000-2010 where the market was flat? Yes, you have time to recover but you lost 10 years of compounding! 

What if you are 10 years or less from retirement and the market goes up and down constantly over the next decade? Can you afford to not have your money grow?

How about in retirement? Do you have strategies to provide you with income when the markets are not performing?

This is the "One Thing" retirement plan many people are stuck with. Market must go up!

To be sure markets will go up but will the market timing match your life timing?

Wouldn't it be better to have strategies working if the market is up, down or flat? 

Strategies to always keep your money compounding even when markets are not performing. 

When you do this, you can retire sooner and with more money than you thought.

Learn how on this episode of Wealth For Life radio. 

Bonus: Tax Bucket Worksheet

Direct download: The_One_Thing_retirement_plan.m4a
Category:Investing -- posted at: 10:08am MDT

Does this sound familiar?

You go in to invest and you tell the adviser you don’t want to lose too much and you are not greedy but you want some growth.

You fill out a risk tolerance questionnaire. This is basically a form that asks you how much you are comfortable losing.

Since you don’t want to lose much you score kinda moderate.You are then allocated into a moderate allocation based on your score and conversations.

A year later the market is up 15% and you are only up 6% and you are wondering what went wrong and you are unhappy.

You are a Victim of a “Risk Tolerance Questionnaire.”

The problem is a risk tolerance is purely emotional. Is it a good idea to invest based on emotional decisions?  Of course not. Yet the industry promotes this model as a tool for investment decision making.

I think it is safe to say we all don’t want to lose money right? From recent surveys, most high income investors tend to value safety over growth.  

So how do we handle our fears of losing money with a more objective approach so we can get the long term outcomes we want?

A better solution: Time Based Allocation focuses on your cash flow needs and getting the performance you desire.

How long does it take a market to recover from a crash?

10% Drop - 1.61 years

20% Drop - 2.8 years

30% Drop - 3.6 years

40% Drop - 4.25 years

Knowing this can allow for better allocation and the potential for better growth.  You look at your cash flow needs in blocks of time and match to an allocation.

How much cash do you need:

Cash flow needs in the next 1 to 2 years - allocate to capital preservation

Cash flow needs years 2 through 4 - allocate to dividend and income strategies

Cash flow needs years 4+ - allocate to opportunity and growth

So instead of just automatically moving to lower yield, more conservative strategies based purely on emotion, you plan out your cash flow needs and allocate more based on market fundamentals and real investment strategy.

With your cash flow needs covered and a safe foundation set up (including income streams, emergency funds, tax protection, etc.) you have a better framework to deal with the ups and downs  of the market. Volatility can become an opportunity rather than something that stresses you out.

And you have a better chance to get the long term performance you are really looking for.

If you would like to know how we incorporate this in an overall financial plan you can access the entire suite of Wealth For Life Planning Tools and to no cost for a limited time. ($995 value.)

Click here for more info!

 

Direct download: Time_Based_Allocation_Podcast.m4a
Category:Investing -- posted at: 5:08pm MDT

What do you do for income if you lose your job or need to take a few months off?

What if you want to retire early? How do you get income then?

In this episode we discuss creating income streams from multiple sources and income you can access anytime.

You can also download our free e-book "The Successful Professionals Guide To Wealth For Life" at https://wealthforlife.net/

Guide to Wealth For Life

Direct download: Build_Income_Streams_S1E2_-_7-31-18.m4a
Category:Investing -- posted at: 11:02am MDT

If you're planning on retirement income over $100,000, taxes could be your biggest expense. In the episode we talk about the hidden tax threat facing the upper middle class and how to structure your wealth so you can save a literal fortune.  

 

Direct download: How_To_Save_Six_Figures_In_Taxes_8-28-2018.m4a
Category:Investing -- posted at: 3:49pm MDT

What does it take to bulletproof your financial plan and finally feel secure in your retirement?  This podcasts has some answers for you!

Direct download: Bulletproof_Financial_Plan.m4a
Category:Investing -- posted at: 6:44pm MDT

1