By nipol @ Adobe Stock
You might be getting flooded with emails about “guaranteed” fixed-income products nearing 10% yields. I know I am. Why let some other company take your profits and stick you with all the risk?
Sure, they may be able to pay you back with your own money while they leverage the hilt out of it, but what happens when the you-know-what hits the fan? Will they pay you back when they become insolvent? And how long will that take? Missing fixed-income payments is like taking sick days without pay. And for how long?
“Won’t happen to me” is the common refrain.
Taking a walk down memory lane is like boating in the fog. Investors forget how bad it was. They forget that minutes felt like hours, and that there was no guarantee you would get out alive. We’ve had plenty of examples already this century of how bad it can get. Many investors haven’t come back because of it. I don’t want that to be you.
There’s something to be said about making money slowly. You don’t get caught up in the hype of chasing the next best thing. You invest in what you know and hang on through the ups and downs. The reason you can hang on is because it’s not as bad as the guy who invested in the stuff that’s going belly up.
Action Line: When you’re ready to construct some margin of safety around your fixed income portfolio, let me know. But only if you’re serious. Email me at ejsmith@yoursurvivalguy.com.
Originally posted on Your Survival Guy.
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