I’ve got to be blunt. Your financial success depends on it.
Wall Street is feeding you a narrative that’s fatally, dangerously flawed when it comes to financial planning.
They make the assumption that you’re going to live this way or that and, in doing so, produce a whole bunch of fancy charts, full of calculations intended to show you how much you need to save to meet their projections.
The hope is, of course, that you’ll become a valued, or should I say valuable, client – meaning you’re going to generate tons of commissions to line their pockets for having prepared a deep look into your financial affairs.
The reality is very different.
Those same fancy-pants charts – which, by the way, can cost you a “planning fee” ranging from $100 to several thousand dollars – usually have the opposite impact: People realize they’re so far from meeting their “goals” that they give up without even trying.
I’ve never liked that, but then again, I’ve never played by the rules, either.
That’s why I’m so excited to tell you this…
It’s All About Functional Financial Fitness
Financial planning should be on your terms and planned around your life’s events. Trainers call this “functional fitness” if you’re in the weight room, and I think calling what I’m talking about “functional finance” isn’t a stretch.
From buying a boat to taking your kids on a vacation or even paying for somebody’s education – those are real goals when it comes to your functional finances.
Makes sense, right?
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So what you want to do is create a functional portfolio that helps get you there… to the specific events in your life that matter… not “someday” assumptions created by somebody who couldn’t give a rat’s you-know-what about how you live – let alone what is important to you and why.
Obviously, there is no “one size fits all” approach. But there is a way to think about this stuff that can help.
Forget about the diversification models Wall Street’s selling. Everything moves damn near in lockstep in today’s highly computerized markets. So “diversification” is a lot like rearranging the deck chairs on the Titanic.
That’s why I created and pioneered the “50-40-10” model at the core of our flagship service, the Money Map Report.
The “50-40-10” model is based on something called “risk parity,” which means that the model constantly adjusts for risk and can keep you out of trouble every time you rebalance.
Stock selection then becomes a matter of “fit,” rather than something akin to throwing spaghetti against a wall to see what sticks – which is how conventional diversification models work.
Split your investments into “must-haves” and “nice-to-haves,” and very quickly, you’ll see which ones offer true investment potential as opposed to speculative potshots.
Can you live without Lyft Inc. (NASDAQ: LYFT) or Uber?
Most definitely yes; they’re nothing more than glorified ride-hailing companies that, by their own admission, according to their offering documents, may never be profitable… ever.
On the other hand, Apple Inc. (NASDAQ: AAPL) is rapidly becoming a “must-have,” especially as it pivots to healthcare.
Nobody will ever prescribe an Uber, but chances are better than good that your doctor will prescribe a device running some sort of Apple system to help you manage your health within the next few years.
And that, in black and white, is the stark difference between the “nice-to-have” companies Wall Street pushes and the “must-have” investments we own.
I strongly encourage you to learn more about the “50-40-10” model and the Money Map Report. You can click right here to do that.
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