Mark D. Goldstein, CFP®
NEW MEXICO OFFICE
Pueblo Plaza Executive Suites
1100 S. Main, Suite 10
Las Cruces, NM 88005
Intelligent Office Complex
7362 Remcon Circle
El Paso, TX 79912
3701 Algonquin Rd, Suite 150
Rolling Meadows, IL 60008
(877) 442-0698 Toll-Free
"Guaranteed SAFE-Money Solutions for a Successful Retirement!"
The number one consideration of every truly great investor is "how can I avoid losing money?" In fact, the best investors are absolutely obsessed with avoiding losses.
That's probably surprising, because for most people the main focus is "how can I get the biggest return... and hopefully hit the jackpot?"
But great investors understand a simple yet very profound mathematical fact: When you experience losses and gains of equal percentages, losses have a much greater impact on your money.
Why is losing money such a disaster? It's really quite simple. Let's suppose you lost 50% of your money in the market. How much will you need to earn to make yourself whole again?
Most folks will figure they'll need to make 50%... and they'd be dead wrong!
Okay, let's run the numbers. If you invested $100,000 and lost 50%, you'd now have $50,000, right? And if you then earned a 50% return on that $50,000... you would now have a total of $75,000... and still be down $25,000.
You see, friends, you would actually need a whopping 100% gain just to recoup your losses and get back to your original $100,000. And that could take you an entire decade... or more!
That's why Warren Buffett (considered America's GREATEST investor of all time) offered his famous two rules of investing:
Rule Number One. NEVER LOSE MONEY.
Rule Number Two. Never forget rule number one!
Protecting your downside at all times,