Hey everyone, I’m Derek Merkler, the Military Financial Advisor with your tip of the week. The topic for this week is how to destroy your wealth.
Last week, I spoke to a gentleman (I’ll call him Bob) who contacted me regarding my financial planning services. He was recounting his experience with a financial advisor in the past and his chief complaint was that his investments were losing value.
We didn’t discuss a specific timeframe… it could have been the financial crisis for all I know… or any of the many other periods where investments lost value… temporarily.
Bob called up his advisor and asked why they were not selling their investments. Bob wanted to sell them… because they were losing value… temporarily.
That is the cardinal sin, my friends. A diversified investment portfolio will fluctuate quite a bit! In fact, I believe that those short-term changes in value are driven by human emotion rather than reality. And I could show you plenty of facts and figures and maths to prove it… but I don’t need to.
So why would we sell our investments due to a short-term, emotionally driven reaction to the crisis du jour?
I’ll tell you why we would sell. We would sell if we wanted to permanently destroy our wealth. And I choose not to work with people who insist on destroying their wealth.
But if you want to learn how to build wealth, send me a message.
Have a great weekend!
Thanks for watching!
Please visit my website at:
Remember, the topics discussed in this video are for informational purposes only and that past results do not guarantee future performance. If you would like to discuss your financial situation, please email me at Derek.Merkler@Parsonex.com.
Advisory services offered through Parsonex Advisory Services, Inc., 8310 S.Valley Hwy, Suite 110, Englewood, CO 80112. 303-662-8700.