There are many ways you can lose your money. For some, they just spend it. You know the type. They are always going somewhere next, or just back from another wonderful trip to whoknowswhere. Most of these people aren’t satisfied with just spending their extra cash, and so their credit lines get used as well and eventually, maxed out. We will call them the “spenders”.
Then there are the savers. They don’t invest. They just save. This group used to be able to brag on how much interest they were earning on their money. No bragging has been going on for quite a few years unless someone you know recently bragged they got 1.9 % on a 5 year CD. No, you probably haven’t heard anyone brag about their savings yields in what, over 10 years?
Next we have the investors. And three types. We have those who invest in the stock market and we have those that invest in real estate. Of course, some investors invest in both and that is probably better as long as they watch the shock market and try to sit out the “shock” time periods when things get dicey.
The last type of investor is the “hammer down” type. They buy the risky stuff: commodities, cryptos, trust deeds, domain names, etc. And some of these folks go hard. Meaning, they like to buy “hard” assets such as gold or silver bullion or coins and other precious metals.
Well today, a definite move in “shock market” took place with the Dow falling over 800 points, causing the biggest losses for the past 8 months. Now, it may rally back tomorrow or keep on adjusting down. Profits of doom say the market was over priced. Others say we haven’t seen the top yet and it will go much higher.
Which comes to the title of this blog entry. What is your level of risk you want to take on your investment money? How well do you sleep right now based on your investment positions? The spenders won’t read this blog entry, as they are pressing the plastic to go on their next adventure.
But perhaps, being overly invested in any one area of variable investments may be a reason to talk to a long term financial adviser who has seen the shock market go up and seen it go down many times and through many market cycles. And has come to the conclusion that investing in real estate makes more sense for a large part of your investment portfolio. And that includes your retirement money that most don’t even know you can transfer your IRA or 401-k plan at retirement (or before in some companies allowing early transfers) to a self directed IRA account in real estate.
Why not have a chat with me on my nickel? No obligation of course. Diversification is everything in modern investing. Maybe it’s time you discover true diversification from a new financial adviser who can assist in all the document preparation to take a new direction and shelter some of your money from a shock market that proved it can go down by 1/2 very quickly. Don’t wait until that happens again…