What if traditional investment strategy’s were really setup to make the big investors money, yet give you and I as the little guy just enough to stay in the game, but rarely win?
Think it’s possible?
Instead of playing into speculation, volatility, and uncertainty, there is a better way to create cash flow and passive income sources so that you can set things up to enjoy retirement and get the piece of freedom you deserve.
Enjoy while Dan Kuschell and Robert San Luis speak on Growth to Freedom:
Podcast show recording: On September 2, 2015, I was interviewed by Carol McManus, founder of America’s Linkedin Lady Show and CKC Global Media to discuss my #1 best selling book, “Wealth Without Wall Street – Seven Keys to an Early Retirement”. I talked about my unique approach to investing for retirement and I shared optimal strategies for achieving financial freedom. We also discussed the recent volatility in the equity markets and ways to generate passive income.
On August 7, 2015, I was interviewed by Emma Tiebens and appeared on her regular video program, “Magnetic and Memorable”. Emma and I talked about the investing ideas in my book, Wealth Without Wall Street. I shared my thoughts about ways to avoid speculation and build wealth safely.
Investors seeking better ideas and strategies for achieving financial independence and a prosperous retirement will find compelling advice in this soon to be released book . A rich retirement occurs when you can replace your working income with passive investment income. Learn how you can be financially free by building wealth without Wall Street with: an investment strategy based primarily on income producing assets as opposed to a typical speculative strategy with unpredictable outcomes.
As most investors today struggle with retirement planning and investing, Robert will cover new ground and he encourages investors to look beyond Wall Street. Discover powerful strategies and tactics for replacing active or “working” income with recession-proof passive income.
Practicing professionals, business owners and entrepreneurs seek better, smarter investment advice and Wealth Without Wall Street will share the wisdom and insights of professional investors and investment experts to help them find optimal solutions. We are committed to delivering relevant, high-value content that can improve your financial future.
According to a Marketwatch.com article dated August 13, 2014, the “Average Investor” has earned approximately a 2.4% rate of return over the twenty year period of 12-31-1993 to 12-31-2013 on a 20 years annualized basis, barely beating inflation.
This shocking statistic is eye-opening and reflects the inability of most investors to remove or minimize emotionally driven behavior to sell low and buy high. The importance of including alternative investments in ones portfolio is very clear.
1. High frequency trading comprises between 50-70% of all trades on the exchanges. This new development, totally destroys the “buy and hold” tactic followed by many investors and represents the biggest threat to investors in the stock market. It is virtually impossible to compete with super computers that have the ability to “predict” movement in stock and commodity prices. It is impossible for the typical investor or retail investor to compete with the overwhelming resources of the hedge funds and investment firms that conduct high frequency trading. Ignorance of this reality is harmful. Michael Lewis, author of a recent best-selling book, “Flash Boys”, has declared that the market is rigged. 60 Minutes conducted an extensive interview of Michael Lewis exploring the world of High Frequency Trading and its effects on common investors.
2. Insider trading is rampant. The SEC is struggling to pursue a minuscule percentage of the insider trading cases.
3. Hedge funds and the big investment banks, have massive resources to get better information than you or I, and much faster. Goldman Sachs’ preferred clients got private shares of Facebook, did you? Do you actually think you can out trade the professional traders who work for the top hedge funds and investment banks? The four major money center bank in the US have HFT (high frequency trading) operations and they did not have a loss on any single day!
Wall Street experts like Jim Cramer said Bear Sterns was a Buy, one week before it totally collapsed, then he told Today show viewers to “sell it all!!!” if you needed your money over the next few years. Perhaps he had a big short position on the market that day. Many people foolishly believe that a two second sound bite – buy, sell or hold – is a good way to make critical financial decisions. The stock market is simply impossible to predict and too risky for most investors. The most prominent “experts” can’t predict markets so who can?
You may have seen the ING commercial where a guy is carrying around a sign with a number like $1.5 million and he asks his neighbor, “what’s your number?” and the hapless neighbor is clueless as he is trimming a hedge in the form of the words: “a gazillion”.
The premise of the ad is to suggest that investors need to know what the magic number is (of accumulated investment assets) in order to retire. The central strategy is to build a portfolio of stocks, mutual funds and bonds to a level of critical mass and then with savvy investment advice from Wall Street investment companies like ING will ensure that you can invest properly and retire with financial security.
This strategy of building a mass of speculative assets (publicly traded securities, commodities, etc.) and then consume the principal at the point of retirement, is a dangerous one and very risky in my opinion. How is it humanly possible to predict the performance of the stock and bond markets over the long term? Who can tell you with certainty what the inflation rate will be, the tax rates and much less how long you will live?
There have been two periods in the not too distant history of the US stock market where the market returns were flat for many years. In period from 1905 to 1933, 28 years would pass until the stock market index would reach 96 again and for the period from 1965 to 1982, 17 years went by before 969 was attained by the index. The well financed marketing machine of the Wall St. investment firms avoid sharing this bit of history with prospective clients. Most well trained stock brokers and financial planners will tell you to expect an annual rate of return of 8 to 12% (based on 100 years of historic avg.).
Can you possibly tolerate a scenario where the market went sideways for 15 to 20 years? What if the market dropped 20 to 30%? No one can foretell the future of the stock market even though we are all brainwashed to think that by listening to Jim Cramer or some talking head, we will be ale to confidently predict the direction of the markets. Is it possible to know the unknowable? There are hundreds or thousands of factors that influence the valuation of financial assets. The entire point of financial journalism is to keep hapless investors glued to their TVs so they can sell their valuable ad time to sponsors.
The point at which financial freedom occurs, is not the attainment of some magical massive number. Mike Tyson has demonstrated how $400 million dollars could be insufficient. Mobile homes form a triangular pattern in rural America.
Financial freedom is won when your investments earn enough passive income to meet or exceed your expenses.
The critical lesson here is to have a plan that replaces your working income with passive income. Most investors do not have this orientation. The common path is to swing for the fences and hope that you find the next Apple or Facebook stock. You could also watch CNBC or any of the financial TV channels like an obsessed maniac 24/7 hoping that a buy, sell or hold signal from Jim Cramer is the silver bullet.
Stephen Covey, the famed author of “The Seven Habits of Highly Successful People” talks about the importance of examining what your end goal or desired outcome is first, and then work backwards from there.
When it comes to planning for retirement, we tend to bury our heads in the sand and avoid facing this important issue.
According to US government statistics, at age 65 only 5% of Americans are financially independent or secure at retirement. That means that 95% are reliant on family or Social Security , or working till death, or dead. The grim reality of enduring financial struggle and or endless work is not very appealing.
The odds of enjoying financial stability in retirement are even longer absent a well thought out, coherent retirement plan.
The ideal retirement plan will map out the appropriate strategy for investing in the correct types of assets in the optimal way to earn passive recession-proof cash flow so you can stop working, replace your working income with passive income and enjoy your retirement the way you want.
There are six keys to consider when constructing a useful, effective plan. These questions are very useful in virtually any aspect of your life.
Why must you win? motivation, personal values, conviction
Where can you win? asset classes, business or industry niche
What will it take to win?strategy
How will you win?tactics
What will you use to win?services
What must you do to win?daily practice, routines, techniques
YOUR ABILITY TO SUCCEED IN LIFE WILL DEPEND ON THREE THINGS: WHAT YOU LEARN, WHAT YOU DO AND SWIFT ACTION.
More specifically, your success depends on the quality of the information you receive and the speed and ability with which you act on the information.
We are all awash in data, information, marketing messages from radio, TV, the internet, social media, print media etc. We do not need more information, we need better or higher quality information to achieve our desired outcomes, what they may be.
If we want to build wealth, lose weight, or find a mate, we will only get to where we want to go if we first, get quality information, have the ability to act, and act swiftly. If we fail to have or execute any of the three elements, we will not succeed, we will not win.
A useful contemporary example of my success formula, is the recent military mission to hunt for Osama Bin Laden. The CIA and the Defense department had the high quality intelligence. The Navy SEALS are among the best trained special forces unit in the world and they executed their mission with speed and extraordinary ability. All successful military missions must have the three critical elements for a desired outcome.
The Navy SEALS completed their mission because they had all the elements to the success formula; quality information, ability to act and speed of action. Let us examine these elements in closer detail. We will elaborate on their definition, relevance, and ways to achieve them so you can get what you want.
So then the first question for an investor whether passive or an entrepreneur seeking to improve their financial performance should be, how do I get better information?
There is a process for obtaining optimal intelligence or information.
1.Research – get solid information from a variety of respected sources.
3.Expert analysis of data, plus opinion + track record of the experts, researchers, analysts.Use your critical thinking to evaluate the data.
4.Supporting evidence – seek references and success stories.
5.Secret sauce – use your judgment, gut (subjective analysis) and your intuition.
6.Cover the two critical bases: what to do and how to do it (education & strategy)