What should I invest in? - March 2024 (#11)

Hello again dear reader! It’s time again for another 3 part series!!! People love to ask your dude Brent what they should invest in. So of course I tell them buttcoin jk. What seems like a simple question is anything but, as you’ll soon see…

Motivation

Recognize that the first time you do anything is always and SHOULD BE intimidating. Every time you try, or invest in, something new or in a different way it should scare you a little bit. THATS OK, THATS HEALTHY. That anxious feeling means your doing something new and growing as a person. Take it as a sign to KEEP GOING and know it will always fade with time.

Money

Ok, so you got some spare moolah and want to make it grow. There’s a few things you need to have figured out before you start investing:

1. Getting your savings account squared away

2. Knowing your risk tolerance

3. Knowing your time horizon

As I started writing this it got looong, so I separated it into three parts. So this is the first of a three part series.

First, should you be investing at all? Before you should even start investing you must have a reasonable amount of savings built up. What’s reasonable? Well that depends on a few things:

• Do you work in an industry that’s prone to layoffs?

• Do you have a job where if you lose it, it would take a while to find a new one?

• How liquid (easy to sell) is what you are planning on investing in?

• How volatile (how much it moves up and down) is what you are planning on investing in?

• Do you have an old home or car that’s prone to needing repairs?

• Do you know how much you need in a bank to sleep well at night?

Generally, I recommend at least 3-6 months savings. Why do you need savings before you can invest? If you don’t here’s what happens. You find some great investment. You put your money in. Your letting your investment do its thing… BAM!!! Unexpected expense. So then you need to sell your investment. In the meantime it may not have gone up, OR it could have gone down and not done what you were intending yet… so then your selling at a loss OR if it did go up your selling earlier than intended, and now your paying a higher tax rate on your return than if you’d waited a year.

Also, it may not be a very liquid investment. In that case you’ll likely have to take a haircut to get your money out, IF you can get your money out at all? How do I know all this? I’ve LIVED it. Hard knocks has been my ever present teacher that Murphy’s law applies no matter how great the opportunity looks. Plan accordingly.

FINAL MEMES

That’s all folks!

Copyright (C) 2024 Ann Royal Advisors All rights reserved.
The information contained on this Newsletter and any resources available for download through this newsletter are not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, CPA, or financial advisor, nor am I holding myself out to be, and the information contained on this newsletter is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. Make your own choices and don’t sue me please.


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