The stock market has shown us once again that we are not in control. During the first week in August all three major indexes gave back all their growth for the year. In other words, if you were banking on the market to rise out of the recession it did – but only for 7 months – then you were crushed with losses taking you back to square one.
For years here at BecomingYourOwnBank.com we have worked hard to help our clients understand that the losses you suffer have a much greater impact than the gains. Studies show that if you could get 30% of the market growth and never suffer a loss you would end up the same as the investor who rode the roller coaster known as the market.
We all know that we can learn from the past, but how many of us really are? We have watched as thousands of baby boomer nest eggs have been cut in half – if not worse, yet we continue to throw money at vehicles whose success relies on market growth. The individuals who are breaking the mold are those who understand that control, consistent growth and no losses is the most efficient way to wealth.
The Banking Effect provides the control and security so many of us know we need but do not seek because we are lured away by visions of grandeur in the form of double digit returns. The fact of the matter is that if you are tired of losing money you have to do something different and the real way to wealth is to keep more of what you make not risk more of what you keep.