Angie: Welcome back, what’s on your bucket list. Hopefully having enough money to have a wonderful retirement. Joining me now is James Brewer he’s with Envision wealth planning. And he says everybody should have a bucket list. Good morning and thanks for coming on the show.
James: Well thanks for having me.
When you say a bucket list strategy for investing what exactly do you mean James?
What I mean is that I find a lot of people think of it (their money) as all my money (in one bucket), rather than thinking (in terms of buckets): the money that I need to retire needs to be thought of one way, the money that I need pay for my bills and well maybe there’s sending the kid to college. Each one of them needs its own strategy and be thought of differently.
Angie: What do most people do- put all their money in one bucket?
James: Yes, Yes. One bucket or basket. If you start thinking you need the money tomorrow, you don’t want the money in something that’s going to go up and down (in value). Banks are usually pretty safe for that, but if I need to think about retirement, that’s 20 years away, then I need to grow that money and be ahead of inflation. I may have to accept some of that market going up and down, but I want to have that big growth.
Angie: Let’s make some buckets here, one bucket could actually be just cash.
James: Absolutely. I think it is important to have cash, but think about cash in terms of- do I need an emergency fund, do I need to pay for my bills. There could be some things (you need) in the short run that you don’t want to take on too much risk, but maybe could take on a little bit more (risk).
Angie: And you also say stocks and bonds that could be a bucket.
James: I love stocks and bonds especially for their long-term growth. Stocks primarily to help you outpace inflation but bonds do a wonderful job if they’re done strategically to help kind of dampen some of that market stuff that gives people that queasy feeling in the pit of their stomach.
Angie: Absolutely. Any stocks or sectors that are looking healthy to you right now? Well, I try not to think about the right now. I tend to think about the long-term. Everything has its day and the idea to is to buy low and sell high. A lot of times when people are telling you about what to buy now, it’s what you should’ve bought about 18 months ago.
Angie: It’s too late.
James: It absolutely is and now you’ve missed that full upswing.
Angie: So now we have cash, stocks and bonds diversified and then your last tip is trust and let it go.
Yes. I find that that there’s a great mind the one Nobel Prize he learned don’t look at his quarterly statements and that helps him stick with his own strategy.
Angie: get your money together and so go live your life and hopefully it’s growing.
I love the word enjoy.
Angie: Enjoy. Well it was a joy to have you on the show today. Thanks for coming on.