WEALTH MANAGEMENT
Let me tell you about how much money……..
Over the past 28 years, I have analyzed
more than 5000 investor portfolios. So as
you probably can imagine, I have heard
hundreds and hundreds of different
stories about making money, paying too
much in taxes, being the victim of bad
investment advise, and of course , one of
the most painful stories – losing money.
Not just losing “some money in the
market “ , I’m talking about losing 50%
- or more of your entire life savings! Stop
for one minute and think about that.
Imagine, you work for more than 30 years
and you diligently save your money –
year after year after year. But towards
the very end of your career, right before
you retire…along comes an aggressive
stock market crash, or the investment
that you held implodes and your wealth
disappears within days or maybe within
weeks. It took you more than thirty years
to grow your money….and old man Mr.
Market –took some or most of it away in
less than a month!
Sadly, I have seen this happen
to many terribly unfortunate
investors.
They came to me for help, and it’s usually
too late – it’s after-the-fact.
Here is a summarized version of one of
those stories. Why do I write about this?
Because if I can reach one investor, before
they lose a significant amount of their
wealth...... It’s absolutely worth sharing.
The year was 1999. A couple came in
to see me – they were in their late 50s.
They ( let’s call them Bill and Kathy) had
recently inherited over $500,000 worth
of technology stocks from Bills mother.
Apparently his mom was a very astute
investor who loved tech stocks. This was
obviously a good problem to have! The
real problem, was the fact that Kathy
was very nervous about losing money.
She said to me: “Steve, I literally begged
Bill to come in and talk to you to get a
second opinion about these stocks.” You
see - Bill thought the technology market
was just getting started and his $500,000
portfolio will grow to 1 million or as he
said “possibly as high as 5 million if I hold
the portfolio for 5-10 years! Bill had no
experience in the stock market, but he
was enjoying an aggressive bull market
in the technology sector. Bill thought
that his timing was perfect and this was
his golden opportunity to become very
wealthy.
Most of us know how the story ends.
Bill did not take my advice to diversify
his portfolio. I remember telling him:
“no tree grows to heaven! There’s two
things you have to do: 1- say: God bless
America...I’m taking some profits! Next,
number 2- I will help you diversify your
portfolio so you do not have more than
15% in any single stock or sector- like
technology stocks”.
In March of the year 2000 –
the music stopped, and the
party was over.
Bill and his wife lost over 75% of
their portfolio. Dot coms….turned into
dot bombs. The great tech bubble finally
burst. This is simply another story that I
call: how much money… I used to have.
I have heard this and so many other
stories – just like this - over and over and
over again.
Remember one thing – Money will always
look for and find new opportunities, and
when it does....it may run away from you.
92 TAMPA BAY MAGAZINE | NOVEMBER/DECEMBER 2017
Please take a minute and ask yourself this
question:
Do I really know what I own,
and how much risk I have –
right now?
Most investors (especially in 401-
k’s and other retirement vehicles) own
a bunch of mutual funds, but have no
idea – what’s inside of the mutual funds
themselves!
If you have more than 15% of your “life
savings” in any single investment, I would
suggest you reread this short story, and
diversify prudently as soon as you’re able
to do so. We offer a free consultation,
without any obligation. If we can help
– we are always simply a phone call, or a
web click away!
I used to have.
Retirement Wealth Advisors www.ASKsteveholland.com
727.724.3334
2637 McCormick Drive #101
Clearwater, FL 33759
* This material has been prepared for informational and
educational purposes only.
It is not intended to provide, and should not be relied upon for,
accounting, legal or tax advice. Please consult with a professional
specializing in these areas regarding the applicability of this
information to your situation.
Investment Advisory Services offered through Mutual Trust Asset
Management