“Invest For Need – Not For Greed” – Keith Springer
For some, “Invest for need, not for greed” may simply mean “getting the very best returns with the least possible risk”, while for others it presages “don’t gamble with what you can’t afford to lose”. It is a simple philosophy, one we should all embrace for successful investing in today’s unpredictable world. The hard part is fashioning the appropriate plan for this increasingly dangerous market environment.
In today’s volatile times, a whole lifetime’s full of work can disappear in the blink of an eye. The “Retirement Red Zone”, the period before you retire where you simply cannot afford to lose your money because you cannot replace it, has changed. This period was once about 5 years in advance of retirement, but must now be adapted to 10-15 years before you hit those golden years. The old paradigm of “how much can I make” must be replaced with “how much do I need”.
Most investors, as well as advisors, still simply take the old fashioned route to investing and rely on silly calculations like subtracting your age from 100 for an allocation or throw money at stocks or mutual funds because they may have done well in the past. Still many feel like they are safe because they are “diversified” because they own a bunch of different mutual funds and or their brokerage statement is 20 plus pages long.
What most don’t realize is that many of their investments all own the same thing. That’s called “positive correlation”. What’s worse is that diversification may give the feeling of being protected, but as we just learned again in 2008, it is nothing more than rearranging the chairs on the deck of the Titanic!
How many times do we have to live through a 2008 crash? How many lost decades like we just witnessed from 2000-2010 where stocks lost -2.7% and -5.1% after inflation do we have to endure? How many times do we have to see “past performance is not indicative of future results”, before we get it? How many headaches, heart attacks and sleepless nights worrying about our nest egg do we have to have before we take control of our own financial future and simply take lowest amount of risk possible in order to get the returns that we “need”?
With “Invest for need, not for greed” we have pioneered the technique of taking a forward looking approach to investing, by calculating what your money “needs” to do each year for the rest of your life. From there we establish exactly what rate of return your portfolio must earn to meet your objectives. Once we have the return that you “need”, we take the least amount of risk possible to get there.
Our “Invest for need, not for greed” approach combined with our hands-on Top-Down Tactical™ investment management strategy for managing portfolios can help you manage risk and deliver the returns that you need to reach your life long goals with that peace of mind we so desire.
Learn more about the Springer Investment Management Strategy.