In these extraordinary times, we should be questioning everything we've ever "known" to be true, including the financial assumptions that have been presented to us as gospel throughout the years. Some may hold true. Some won’t.
Here’s one:
YOU CAN’T TIME THE MARKET!
Why not? I say you can.
True, it is very difficult to know when the market is going to crash. But will it crash? Of course. It’s crashed multiple times since 2000, and it sure seems to be happening more frequently and severely, doesn’t it?
Can you tell what the market looks like after a crash? Do you need a Ph.D. in economics to know what a financial slaughter looks like? Of course not.
In 2002, the S&P plunged 23% to complete the Dotcom crash, a 46% overall drop. In 2008, the market tanked 38.5% in one year, and in 2020, numerous oil & gas, cruise and airline companies were down around 70%!
Were you able to take advantage of these opportunities, or were you dollar cost averaging and riding the roller coaster as you’ve always been taught, comforting yourself with the trite reassurance that you had time to “make it all back?” I wonder if when Warren Buffet was 40, he followed that dogma in his long-term financial strategy.
So here’s a different way to look at an old assumption: Is it easier to time when the market is going to crash, or when it is poised to go up?
After the Dotcom crash, the market rebounded significantly in a short period of time, having a precipitous run-up until the financial catastrophe only 6 years later in 2008. After that, the S&P recovered 23% in one year and more than 250% until Covid (inflation adjusted). During Covid, the S&P plunged 20% in a matter of weeks, but because of massive government intervention, it skyrocketed to new highs even faster.
Even if it took longer for the market to recover – would it be tragic to get in a little early and wait two years for the rebound instead of one?
I believe most thinking people, given the data, would agree that it’s very tough to know what day that bubble is going to pop, but it’s relatively easy to time the recovery. It happens shortly after each crash! And usually it’s steep.
The problem lies in where to store your money while you wait for a crash.
For more than a decade, banks proved to be a terrible “sideline” to put your money, because the rate of return was pitiful, that pitiful amount of interest got taxed, and over the last few years, inflation has decimated the real value of bank deposits.
Today, even though I’m hearing people get all giddy about 4 or 5% interest rates, banks are still a terrible sideline to sit on while waiting for opportunity.
“We're all in the banking business, it's just a question of what side of the table you're on.”
There is a powerful alternative to storing money in taxable accounts housed in reckless, unstable banks. It is in properly structured, dividend paying, whole life insurance policies, as it has been for decades.
And still, relatively no one even knows about it, let alone utilizes it.
However... really successful... and really wealthy people – do.
Properly structured cash value life insurance:
Can convert a nearly unlimited amount of taxable money into tax-free money;
Is nearly as accessible and liquid as a savings account;
Provides a permanent insurance benefit;
And it is the only financial asset I know of that enjoys
UNINTERRUPTED, compounding growth,
even when you access the money in your account for other opportunities – like timing the stock market at the bottom, rather than at the top!
In truth, you don't need to time the market
Because if your money is inside one of these properly structured vehicles, there is no sideline.
Your money is always working for you, in multiple ways, your whole life. It is absolutely unbelievable to me how much opportunity is missed on this amazing asset. Instead, we leave hundreds of thousands of dollars with banks, enabling them to enrich themselves with YOUR money.
As one of my favorite mentors, Van Mueller, likes to say,
“Who do you love so much at the bank that you’re willing to give them all your money so that they can get rich instead of you?”
In less than one week, I will give a prime example of how using dividend paying whole life insurance allows you to Bank on Yourself® to create long-term, tax-free, legacy-creating wealth.
Don't miss it!
Yes, You Can Time the Market! – June 2023 (Pdf Download)
Contact us for a free 15-minute phone consultation.
Thank you for your time and for taking control of your financial future!
Sincerely,
Sam Arieff
Arieff Consulting
(904) 478-0102
Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.