The TreeceCo Report 

By Tony Treece

Recently we had a seminar. Afterwards, a couple scheduled a meeting with us to discuss their financial needs.

On the day of their appointment, the lady brought in a stack of account statements. It looked like they had never closed a financial account in their lifetime. They had a mess.

They had money in one bank and money in a couple of brokerage accounts and they had one annuity. I had statements scattered all over my conference table. It looked like Christmas morning after opening presents. There was paper everywhere, but after an hour of organizing their statements I learned how much they had.

I looked at the husband and asked, “How much money do you think you two have in all of your accounts?” He said, “Umm... I’d say about 500 thousand dollars.” I looked at the wife, and asked the same question. She said, “I think we... Ummm... I think we have 800 thousand dollars.” I could not believe my ears because they have over 1.5 million dollars in all of their accounts.

Before the year 2000 we used the “Rule of 100.” An example: if you’re 65 years old, you should have 65% of your money in rock-solid, cannot-lose investments. Before the year 2000, we advised clients that it was okay to have 35% of their money at risk in the stock market or banks if they were 65 years old and they did not mind losing 35% of their money.

The paradigm changed in 2000 leading up to the dot com bubble bust. We saw the writing on the wall, so we began asking our clients how much of their portfolio they would mind losing. Before the year 2000, I believe the stock market and banks had much more integrity than they currently do. When I asked the couple in my office how much money they were willing to lose, they could not answer.

Apparently earning money had been easy for them. They did not value what they had, so they were willing to expose their life savings and investments to the over-inflated stock market and the instability of banks.

I know you are probably not like that couple. More than likely you’ve worked hard to achieve your dreams and you’ve saved for retirement. That’s why it is essential to protect your savings with investments that you actually own and control.

At our free dinner seminar this coming Tuesday (October 14th) I will be sharing more on how you can protect your savings. We must have all reservations for the seminar by noon today. Call 704.935.5295 to reserve your spot.