Wisdom Wednesday’s – Lesson #4 – When You Get "In" Isn't That Important, Neither Is When You Get Out

What I’ve found after 7 years, now in my 8th, of helping investors is that the people that don’t make money are generally more worried about getting “in” or “out” at the “right” time, than about how they’re going to make money.

The truth is, neither are actually that important. In this short lesson I’m going to explain why and make conscious the only thing that IS important that you should have 100% of your focus on…

“What should I do while holding my asset?”

That is the single most important question you need to be asking yourself when holding an asset. Now, of course you want to get into an asset at the bottom of the cycle, of course you want to get in at the top…

but PERFECTING those executions to the point where you’re sat out of the market paranoid about when to enter, that’s wrong.

More than likely, you’ll miss the chance anyway.

Let’s take a real look at what happened in the Gold market the 12 months before and 12 months after it’s 2011 August/September peak…

Screen Shot 2014-01-29 at 16.34.13

So, as a “normal” investor at the turn from 2010/2011 you would have been contemplating when you should get in, and if you already owned Gold & Silver then when you should be getting out.

It seemed like everyone was getting in, the questions running through your mind would have been something like…

“Has the bubble happened?”

“Am I too late?”

“I’ll wait for it to come down to get in”

“Oh, it’s turned down, should I get in now or see how far it goes down?”

And you’d have probably been having these questions right up until GLD hit a high of $184.82 in August of 2011.

After which, you would have seen the price smash in September of 2011 and started thinking…

“That’s it, Gold’s done.”

“This is the end of the bull run”

“I’ve missed it”

“Maybe this is just short term, should I buy?”

“What if it comes back up, will I miss out?”

and the most dangerous one…

“I’ll wait until it hits the low and then get in BIG.”

All this time you’re sitting outside the market, generating no return on your cash, leaving your cash in the bank, guaranteed to lose 10% (inflation) and sat simmering as a slave to the mental game of fear & greed.

Let’s take a step aside and look what your profit COULD have been if your timing was great and terrible before and after the high:

12 Months Leading To August 2011

In: $121.15 (lowest price that month)

Out: $184.82 (highest price that month)

Profit: $63.67 or 52.3% – if you were in the market & timed it perfectly.

12 Months After September 2011

In: $185.85 (highest price that month)

Out: $153.61 (lowest price that month)

Loss: $32.24 or -17.3% – if you were in the market & timed it perfectly.

But realistically, you were sitting outside the market, in cash, losing 10%.

That’s the dream wall street sells you, if you buy into that dream of timing, you deserve to be on the ferris wheel.

Now let’s take a look at how Gold For Life coaches investors…

Firstly, we would have owned the asset for the whole 2 year period because it’s not about getting in or out, we’re long term for Gold & Silver.

In: $121.15 (lowest price first month)

Out: $153.61 (lowest price that month)

Profit: $32.46 (if you were to exit)

Now let’s ask the most important question, “What should I do while holding my asset?”.

You would have been generating a cash-flow of 1 to 2.2% per month (a independently documented and verified average of our Gold For Life Students Results).

Total Cash-Flow Return Over 24 Months (Asset Bought At $121.15)

At 1% per month: $29.10 – uncompounded

At 2.2% per month: $63.97 – uncompounded

And the final total profits:

Gold + 1% Per Month: $61.56 or 50.8%

Gold + 2.2% Per Month: $96.43 or 79.6%

So which do you prefer? The heart wrenching, blood pressure pumping, sleepless stressful nights of timing the market in and out and most of the time sitting on the outside not doing much but letting inflation kill the value of your money…

or… the calm, long term approach of getting into an asset for the long term, generating a very conservative cash-flow and milking the asset month after month in under 15 minutes to generate a return that far beats out most traders AND most importantly, gives you the lifestyle you want by not forcing you to live in-front of a computer or at the mercy of the market…?

Would you rather make 52.3% and have a stressful life or make 50.8% and enjoy the life you want?

If the penny of this lesson has just dropped, you’ll now see why I’m so passionate about helping Gold For Life’s benefits get to people with cash in the bank.

All you did was get into an asset you were confident about the long term upside in, and then asked the most important question “What should I do while holding my asset?”.

That is why when to get in and when to get out isn’t that important in the grand scheme of things for a long term investor.

For smart, conservative and non-professional traders (I can’t think of anything worse than being a trader, just not how I want to live my life)… The profits are made while you’re holding the asset.

Being in a money focused world, I always get people from outside this world asking me “is money more important than anything for you?”

My answer is always the same… “I choose quality of life over money every single time.” They walk away shaking their head as I go right back to talking about wealth. For the first time, let me finish the quote for you that I believe in my heart, but have no need to say to people who just don’t “get” what it means to have it “all”… “…doesn’t mean you have to sacrifice the money.” Shh!

You can get wealthy slowly, easily and most importantly SURELY. You just need to understand the one rule for long term investing – The profits are made while you’re holding the asset.

– Minesh Bhindi

P.S. Please let me know if you found this valuable & if you plan on implementing in the comments below…

P.P.S. What’s more important to you? Quality of life… or money? Do you believe you can truly have it all by working your wealth smartly? Let me know in the comments below now…

5 Comments

Marlyse

January 29, 2014 at 7:08 pm - Reply

I’m not sure I’m getting this. As a GFL student, I know I can make money while holding the gold/silver in my account by selling calls. In my case, the SLV price is lower than what I bought my SLV. How can I make money on it when I don’t want to take a chance that my calls would fulfill at a lower price than what I had purchased the SLV for in the 1st place? Am I missing something?

Minesh Bhindi

January 29, 2014 at 7:29 pm - Reply

Ofcourse… You might not get the top range of ROI, but you will get a better ROI than anywhere else. Make sure you ask me the question on the next Q&A & I’ll walk you through it on-screen.

Steve

January 30, 2014 at 11:54 pm - Reply

OK so I have a little cash, and it’s mostly sitting in the bank. Not sure I agree with the 10% depreciation, but that’s not the point. It sounds so simple though, just put it into G&S, sit back and enjoy a hassle free ROI. But how? If I’m just holding, I don’t understand how that makes me money. In fact, surely holding a physical asset will cost me money? It’s not like property where I could rent it out to generate income, or stocks where I could take a dividend?

Yours,
Intrigued

(If it sounds too good to be true… well, you know the rest…)

Marlyse

February 4, 2014 at 12:37 am - Reply

I would love to. The challenge is I’m not normally available to be on a webinar on Monday AM’s which is what it is in Arizona. I would love it if there was somewhere I could write & ask questions because I always listen to the webinar replays & could hear your answer at that time.

Marlyse

February 6, 2014 at 5:18 pm - Reply

Would it be possible to email you a question since I’m seldom available on Monday mornings which is when the Q&A calls are in the US?

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