It is sometimes difficult to convince someone that the world is not actually going to come to an end, but it is a conversation that often comes up during volatile times.
In September of 2001, I was invited to speak during the morning news broadcast of Channel 19 in La Crosse, WI. This would have been shortly after the 9/11 attacks that occurred in our country, and the stock market had been frozen, a rare occurrence, for several days. The nation had been frozen for several days. We didn’t know what tomorrow would bring.
Because of events happening internationally and nationally, people have been bringing up similar concerns. Clients have been sharing things that I have not seen for several years. They’re worried about a recession. They’re worried about a depression. They’re worried about World War III. They’re worried about how their life could be changing forever compared to how it has been.
My response lately has been – Chill Out.
For compliance reasons, I can’t actually say that the world is going to be okay. However, I have experienced good times and bad times over the years. I know my parents went through some hardships, and my grandparents went through some hardships. History is a repetitive motion of good and bad times.
What you need to focus on is how you prepare for the bad times while everything is still good. In my book, Investments Don’t Hug: Embracing the Life Insurance Asset, I discuss having ample cash that’s always available. Money that is set aside for emergencies or for opportunities, because the people with cash are the people who are prepared for both and win at life. Some assets, like real estate, are not very liquid and will not be very helpful when you need immediate access to cash.
You need to be like the squirrel – squirreling your nuts away so that in the dead of winter, you can find all of those hidden stores. I have done this very successfully, over the years, by storing large amounts of cash inside of whole life insurance policies that have contractual guarantees. In the years that the company does well, which has been every year for me, you even get little bonus dividends on top of the contractual guarantees. This is perfect for when a business opportunity arises. It’s there for when an emergency occurs, and there will always be opportunities and emergencies, but are you prepared for them?
So, what do you think I talked about when I was live on TV in September of 2001. I didn’t talk about the markets. I didn’t talk about recession. Instead, I said that our jobs during a recession or crisis are to show up to work or to show up at the non-profits that we volunteer for, and do our very best possible job. Be the very best person that you can be. There will be a lot of noise all over the place. If you focus on the bad, you will only see the bad in the world. If you focus on the good, then you will get the positive vibes coming your way.
The message is the same from 2001 to today – Do your Best. Be your Best.
