GMR 117: Investing During Economic Uncertainty

Episode 117
Robert G. Allen once stated, "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." Although becoming a millionaire should not be everyone's goal, having enough to care for yourself and your family in the future should be. Saving alone will not get you there; you have to invest. In this episode of GMR, we share some investment strategies to help you achieve a healthier financial future.

 

Show Notes


What to do with your current investments

  • Stick to your principles, review your original investment strategy.

  • The best investment advice is to leave your long-term investment funds alone…

  • You shouldn’t try to time the market with your retirement savings, you do not have the experience to time the market.

  • Most experts can’t predictably beat the general market indexes like S&P 500, Dow Jones, and Nasdaq Composite.

 

Investing Long Term

  • Mutual Funds well diversified across a number of stocks are a great place for investing long-term.

    • “stock market returned an average of 11.31% from 1928 through 2010” -Investopedia.

    • Over the long term, stocks do better than bonds. Since 1926, large stocks have returned an average of 9.8% per year; long-term government bonds have returned between 5% and 6%. - Ibbotson Associates.

  • Now, past performance isn’t a guarantee of future performance in stocks or bonds, but with 100+ years of data, you’re on solid ground.

 

Investment advice - a review

Four Places to Invest 

  • Personal Education

  • Personal Business

  • Other People’s Businesses (Companies | Stocks)

  • Property (Real Estate)

 

Best place to invest!!!

  • Invest time in your budget.

  • Invest in your emergency fund, until it’s fully funded.

  • Invest in your family and relationships.

 

If I have $1,000, what should I invest in? 

  1. Make sure you’ve fully funded your emergency fund, have a written budget, and your family is provided for.

  2. Only invest what you are able to lose.

  3. Check your motive - deal with greed.

    • Well-positioned companies that will do well in the long-term worth investing in.

      • Starbucks

      • Boeing

      • Airlines

      • Oil

      • Servers, Data Storage, Telecommunications (online meetings)

 

Companies that have cash:

  • Apple - $200B+

  • Microsoft - $130B+

  • Berkshire Hathaway - $120B+

  • Alphabet - $100B+ (google)

  • Facebook

  • Amazon

  • Ford

  • Oracle

  • Cisco

  • Bristol Myer - $30B+

 

Foundational principle - Never invest in something you don’t understand.

  • The point is that you have to educate yourself before you invest in anything. 

  • You have to understand enough to feel confident in the investment choices you’re making. It’s not about becoming an expert, but it is about being knowledgeable. 

  • This season is a great example of why you need to be knowledgeable about your investments.

Never invest in a business you cannot understand.
— Warren Buffett

Resources

Budget Forms and Tools
David’s New Book - Jesus on Money
David’s New Website - www.stewardshippastors.com