Investing Cycles

Chances are you’re a part of the baby boom generation born between 1946 and 1964. That means the youngest Baby Boomers are turning 50 this year. With 15 to 20 years or less until retirement, it’s crucial to make the right decisions with money right now because where you decide to invest today will likely determine how good or not so good your retirement will be.

When considering what to do with money, the first thing I always consider is “What cycle are we in?”

In other words, where are we now and where are we going?

Most people in the investment world only look backwards at where we’ve been. The track records on potential investments, by law, can only show past performance. Yet studies show past performance actually has very little to do with future performance.


Instead, I encourage you to look at the big picture or “macro” view. Start with where we are right now. We’re in a low interest rate, low inflation, low economic growth environment.

We also know that money moves in cycles. So do interest rates, inflation, and economic growth.

Get the cycle right and you can build enormous wealth. Be sure to consider:

1) What changes could be coming in the next 10 to 20 years? Not only technology, but also interest rates, inflation, etc. What cycle will the pendulum be swinging toward rather than away from?

2) How will demographics change how we invest? Author Harry Dent is brilliant at looking at how demographics impact investments. Have you ever stopped to think WHY residential real estate has increased so much in our lifetimes? How will demand change now that baby boomers are in or approaching retirement age?

3) What products and services will aging baby boomers be wanting and needing. Yes, we can expect more commercials for Depends (adult diapers) on TV!

4) What changes do you need to make in your life so the next 15 to 20 years boost your investment and bank account?

5) What things do you want to STOP doing?

6) What are your priorities along the way? Travel? A new home? Charitable contributions? (or maybe more golf!)

Thinking about your priorities and forward thinking today can set you up for financial freedom in the next cycle.

You deserve it!

If you’d like to request to apply for a complimentary 30 minute “Be Wealthy & Smart Strategy Session” with me and see if you are a match for a Private Wealth Mentoring, please click on the link: Request a Strategy Session.

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