Manage episode 295849948 series 1396304
Today, we’re sharing some financial proverbs that you’ve probably heard before. We’ll explain how they can help your financial situation.
A bird in the hand is worth two in the bush
It’s better to have the thing you know you have, versus the potential of what you might get. People often think about this in terms of investing and being more conservative.
We know of a couple that was forced to retire sooner than they wanted. They took money from their 401k plan and bought a business that they we’re familiar with. It was extremely difficult, and they worked around the clock.
They were barely keeping the business afloat and decided to sell the business. They lost the growth of their 401k.
We sometimes see people have a retirement date and decided to be more aggressive, but as you’re reaching the last few years before you retire, you don’t want to incur for yourself retirement date risk. We saw this when the 2008-09 crash occurred, and people who wanted to retire then had to work longer.
A rising tide lifts all boats
If the market is going up and you’re invested, you’re going to make money. The same applies if the market is going down.
Don’t put all your eggs in one basket
In this case, a lowering tide will sink all boats. You need to be diversified.
Check out the full episode or use the timestamps below to hear a specific segment.
0:41 – Bird in the hand
3:39 – Stock market
7:33 – Rising tide
8:22 – Eggs in basket
8:56 – Trash and treasure