Jean & I went out to dinner last Friday with some friends and, as is almost always the case, the conversation turned to money. I was trying to explain “Lost Opportunity Cost”, the concept that analyses the future money lost because of some expenditure today. So, if Jean & I spent $50 for dinner last week, what was the cost to our great-grandchildren because that $50 will not be earning returns or interest.
It’s an interesting thought concept and, if driven to its ultimate conclusion, would cause us to think more about what our purpose for our wealth is. In actuality, all of us have enormous amounts of this lost opportunity costs in our own personal financial life. Whether it’s the money spent on various insurances and never having any claims or overpaying our taxes, just being aware of this concept will help us in our efforts to protect, build and enjoy our wealth while, hopefully, leaving a meaningful legacy.
Our process, “The Liberated Investor Advantage™” is designed to help you see these potential costs and help minimize or eliminate them. I’ve attached a short video to getting started on the thinking process about the purpose of our wealth and what we hope to accomplish with it. It’s also posted on my webpage, www.theliberatedinvestor.com along with other videos and podcasts. If you’d like any more information, just email or call.
In the meantime, we stay the course, investing in large companies paying good and rising dividends with stock buyback programs and solid management. Add to that, the options overlay that can potentially generate +/- 7% extra cash flow and we will continue to enjoy what historically has been market returns that consistently outperform inflation by a wide margin. Please remember investing in equities has risk and past performance is no guarantee of future returns.
Should you have any questions or wish to talk, please call our office or email me at the email shown below. In the meantime, I hope you have a great week!
PS: Always remember, investing in equity markets has risk and past performance is no guarantee of future results.