In this week's post we'll discuss the importance of having products within your mix of your portfolio that you can count on when the market drops.
A bit of backstory - last week I met up and had lunch with Patrick Kelly, best-selling author and the man who wrote the Stress-Free Retirement book - a book that we often lend out to people who come in for a consultation and want to read more on how to help eliminate the common pain-points and hassles on the path to retirement.
We were discussing his new book, but started to go back to a few topics that he discusses in Stress-Free Retirement, and one of those is just how powerful never taking a loss is in building long-term wealth.
Take a moment to consider this hypothetical scenario:
There are two black-jack tables in front of you, and you are trying to choose which one you'd rather be playing:
Table 1 - a traditional blackjack table. You bet $10, and if your hand beats the dealer, you win your $10 back and an additional $10. If the dealer's hand is better than your hand, you lose your $10 bet.
Table 2 - The Power of Zero table. You bet $10, and if your hand beats the dealer, you win your $10 back, but only an additional $5. However, if the dealer's hand is better than your hand, you simply keep your $10 bet and you lose nothing.
Which table would you sit down at?