When people lose money in the stock market, wait too long to begin saving, lose their jobs or get divorced, many of them assume they will never be able to recover financially. They also assume they will never be able to have the same type of lifestyle they enjoyed before the setback. And some of them take on unnecessary financial risk in an effort to recover. I encourage people to look at their situations in a different way. There are effective strategies we can employ to help you offset financial loss.
Unprotected wealth erodes over time
Taxes, inflation and increases in consumption can erode substantial amounts of wealth if we don’t counteract them strategically. In our work with physicians, dentists and business owners, more often than not, the more money they earn, the more they consume and pay in taxes. After years of this cycle, people often wonder why they’re not getting ahead.
I can’t help you get back the money you’ve lost, but I can help you create a strategy using the assets you have now to keep taxes, debt, inflation and “lifestyle creep” from eroding your wealth-building potential. And then when you do retire, your assets will spend as if you had not lost money. Every dollar you lose has a negative rate of return of 100 percent. Recovering that money through effective strategies gives you a positive rate of return.
