Can I get there from here? That’s a really important question, especially as it pertains to your financial future.
What do you hope is in your future? Do you want to travel? Help your kids? Spend time and money on causes and endeavors near and dear to your heart?
I hope so. But in order to realize any, or all of those plans, you will need money.
Money is the fuel that will power your future.
So, how do you maximize your potential for that power? Well, first let me tell you how not to do so.
I am reading a very interesting book right now. It is titled “What I Learned Losing A Million Dollars”.
It spells out the story of a once successful trader who unfortunately forgot how important humility is when it comes to the investment markets, and let his hubris and lack of appreciation of risk get the best of – and eventually bankrupt – him.
There are lots of books on how to make money in the financial markets, but as far as I know, this is the only one documenting how to lose it. And lose it grandly.
So, aside from maintaining humility, what did I learn from this book?
Simply this. You don’t know what you don’t know. Or, as Donald Rumsfield famously stated, “There are known knowns, known unknowns and unknown unknowns.
That last one is the one that will get you every time.
At the beginning of this year, the financial world was filled with everyone’s forecasts of what 2020 would bring. Probably no recession, continued good performance for markets, etc. Butterflies and rainbows. But let me tell you at least one unknown unknown that no one was talking about. The Coronavirus.
Google “Coronavirus” and you’ll find 497,000,000 searches as of today, January 29th. Care to guess how many searches there were just two weeks ago. About zero. No one was discussing it, no one even imagined it.
Now I am not saying that I know the outcome of this current health scare, but that is exactly the point.
You see, the financial writer Morgan Housel defines risk as “always what you don’t see coming”. As Housel writes, “think 9-11, Lehman Brothers’ collapse in September 2008 after an inability to find a buyer, Iraq invading Kuwait, the 1973 OPEC embargo, Pearl Harbor, and a small Austrian bank called Creditanstalt whose 1931 bankruptcy set off a chain reaction of global bank failures that ignited the Great Depression and ultimately WWII.”
Again, what you don’t see coming is what can really upset your apple cart.
So, what are we to do to help ensure that we have a chance of “getting there from here”?
Prepare. And do that well.
We’ve designed our All-Weather portfolios (click here) as our best effort to “get us there”. To financially handle the slings and arrows life throws at us. That’s so important. Especially so if your future is important to you.
For more information about Billeaud Capital Management and our offerings, please click here…
About the Author
Joseph “Bo” Billeaud is the founder of Billeaud Capital Management. After earning a BS in Chemical Engineering (University of Louisiana, 1979) and while working in industry for seventeen years, Bo developed the market risk-control models and investment philosophy that undergirds all BCM portfolios. Since effecting a formal career change in 1996, Bo has helped BCM grow into a respected asset management and financial planning firm currently overseeing $400+ million dollars for individual, corporate, trust, retirement and 401(k) accounts…. Read more.