The stock market is within a couple percentage points from its all-time high after a 20% gain. Those of you who executed my Market-Based Buying Strategy for investing well with minimal effort did very well for themselves: https://brighterdayslifecoaching.com/a-structured-market-based-buying-strategy-for-investing-well-with-minimal-effort/.
For those who asked to be on my list, I ended up sending out 7 different executions of this strategy. You can read about those by scrolling down from here: https://brighterdayslifecoaching.com/category/financial-planning-management-and-investing-related-posts/.
It will probably be a while before this strategy gets executed again because a 3-5% drop in the S&P 500 index generally happens about three times a year, a 10% drop generally happens about once every two years, and a 20%+ drop generally happens once every five years on average. However, if you would like me to add you to the list of people to contact, then let me know so you can hopefully capitalize on the stock market decline the next time. I’ve provided the 5 different risk categories I presently use at the bottom of this post.
Happy investing everyone!
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==== INVESTMENT RISK CATEGORIES ====
Important Note: When adding up what you have across your investment accounts, I recommend making the following adjustment for pre-tax type investment accounts (e.g., 401Ks and IRAs without the word “Roth” attached): reduce the total amount by 24% for a conservative overall estimate. We have to pay taxes when withdrawing from these kinds of accounts so this will help to account for that. Feel free to use a different percentage reduction depending on what tax bracket you believe you will fall into when withdrawing money from these accounts.
VERY HIGH-RISK INVESTOR (your investment goal is 8+ times what you presently have in total across your investment accounts – after making adjustments in accordance with the note above). For example, if your investment goal is $2M and you presently have $250k or less in total across your investment accounts then you would be a very high-risk investor.
HIGH-RISK INVESTOR (your investment goal is roughly 4-8 times what you presently have in total across your investment accounts – after making adjustments in accordance with the note above). For example, if your investment goal is $2M and you presently have $250k-$500k in total across your investment accounts then you would be a high-risk investor.
MEDIUM-RISK INVESTOR (your investment goal is roughly 2-4 times what you presently have in total across your investment accounts – after making adjustments in accordance with the note above). For example, if your investment goal is $2M and you presently have $500k-$1M in total across your investment accounts then you would be a medium-risk investor.
LOW-RISK INVESTOR (your investment goal is roughly 1-2 times what you presently have in total across your investment accounts – after making adjustments in accordance with the note above). For example, if your investment goal is $2M and you presently have $1M-$2M in total across your investment accounts then you would be a low-risk investor.
VERY LOW-RISK INVESTOR (what you presently have in total across your investment accounts equals or exceeds your investment goal – after making adjustments in accordance with the note above). For example, if your investment goal is $2M and you presently have $2M or more in total across your investment accounts then you would be a very low-risk investor.