GMR 117: Investing During Economic Uncertainty
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?
Make sure you’ve fully funded your emergency fund, have a written budget, and your family is provided for.
Only invest what you are able to lose.
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.”
Resources
Budget Forms and Tools
David’s New Book - Jesus on Money
David’s New Website - www.stewardshippastors.com