Today, we will be going through the convictions of “Nick Murray”
(Industry’s most respected Financial Advisor, writer and professional speaker with more than 50 yrs of experience)
Conviction 1 –
Nick believes that the main risk isn’t losing one’s money, but outliving it.
(Living long than our money)
Risk has changed because our life has changed.
People are looking towards 30 years of retirement, and in 30 years the price of almost everything triples.
So risk isn’t the ups and downs of the market (Volatility).
Risk is in reduction of purchasing power while you are still alive.
The only safety lies in building up of purchasing power, which means getting positive returns over a time, inflation and taxes adjusted.
Investments which provide such returns are safe investments. Equity portfolios can do that for you in the long run and can be called safest.
Conviction 2 –
Nick believes that great long term risk of equity isn’t owning them.
Downs are temporary; the ups are permanent.
Never mistake fluctuations for loss. Stock prices go down many times – but since they never stay down, market fluctuates, but don’t create losses. Only people can create permanent loss.
No panic – no sell. No sell – no loss.
The enemy of a successful investment isn’t ignorance, it’s fear.
It’s not the knowledge but the faith on our economy that saves investors’ financial lives.