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Going Long Podcast Episode 269: The Importance of Timing
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In today’s solo show you’ll learn the following from Billy himself:
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Billy Keels 00:00
Today's conversation is sponsored by first generation Capital Partners. If you're an accredited investor and you want to know about how we're helping other accredited investors keep more of their income, go to firstgencp.com forward slash going long.
You're listening to the going long podcast with Billy keels, the number one podcast for long distance real assets investing.
Billy Keels 00:22
Welcome to the gold long podcast, we're back once again to continue to help to educate you so you feel much more comfortable as well as confident investing beyond your backyard. And yes, I'm your host, Billy keels back once again, for another solo episode. This was going to be super brief. But you know what, as it's super brief, I just want to say thank you so much for continuing to screenshot and tag us across LinkedIn, and Instagram, it's really cool. And across other social media platforms, it's awesome. You're helping also for us to be able to attract other new going long family members, which is going to be absolutely fantastic, we continue to make more impact. So thank you for taking an active role in in attracting more people to the podcast, and also to anyone if you've not had a chance to leave your honest written review, and I'm going to read one here pretty soon. And you want to have that read to people in over 40 countries around the world, which is actually pretty awesome. Thank you for continuing to do that. Just leave your honest written review as well as rating. I'd also helped to move boost the podcast up in the in the charts and things like that. So if you've been thinking about it, and you haven't done it yet, hey, look, we even have a little video here. And you can click the link and it'll show you exactly what you need to do so anyway. But speaking of which, I do want to read one of the one of the reviews and honest written review. And this comes from Derrick Clifford, and it says full of insights, Billy has a unique take on investing in offers listeners of the podcast, some great insights to assist them on their real estate investing journey. Every episode is full of wisdom from people who know their stuff highly recommend. Well, thank you, Derek Clifford, really, really appreciate that. Also, there was a fantastic guest, I think it's still I think it's the same Derek Clifford. Really appreciate the words. And thank you for taking the time to leave an honest written review. So once again, you can check us out check out every single episode as well go to first ncp.com forward slash podcasts and check out every single episode. But let's get to today's kind of thought like the thing that I have had on my mind, the thing that I believe is another thing that is really, really important to consider as you are painting and putting together your investing destination. It's this concept, which is the importance of timing, like timing is so important. It is so critical. And it's one of these things that I realised and I'm just gonna, I kind of I put timing and I think about timing, like the theory of the roller coaster, right? Because most people, maybe not you because you're here and you recognise that there's lots of different investing vehicles and you're using each one of these vehicles, to your benefit so that you can get to your investing destination even sooner. But let me show you share something that's happened to me. I don't know if this has happened to you, but it may ring a bell. But this goes back to the importance of timing and the theory of the roller coaster. When I was growing up in in Houston, I go back to Houston, Houston, Texas, there was a moment where we were living and we there was a plant there was an amusement park and this amusement park. It's called astral world, right? And I think it's still there. So astral world had all these amazing roller coasters. And so we would go to the Astrodome a lot. And so to watch baseball games with my dad and my little brother, typically, and then after World was right in front. And the thing is, when I was younger, I really, really, really loved being able to go to astral world and being able to get on a roller coaster. I liked the roller coaster rides, I liked the highs, I liked the lows, I liked the drops in the superspeed. And then every single thing like I would turn these corners really, really hard. And I my neck would go to the left, and I'm shaking and screaming and all that kind of stuff. And it was fantastic. Because I was super young. Right? I was really, really young. And in my 40s I wanted to have that same experience for our kids, my wife and I and so I'm thinking about now we're here in Barcelona. And outside of Barcelona, there is a great place called PortAventura. And it's an amusement park as well. But the thing is, is I started recognising like in my 40s when I get on the similar type of roller coasters, and I go up and I go down, and I go to the right and I stood to the left, I start realising that, number one, my head hurts. And my stomach doesn't quite feel just as nice as it did when I was a young man in in Houston, Texas. And also when I'm going to the left and going to the right, the next day, my neck tends to hurt a little bit. You get the ability. Well, why do you even tell us this? Well, because it's the same type of roller coasters. It's the exact same type of experience. But timing when I was younger, it did not hurt as much as I've gotten older. The repercussions of those ups and downs and left and right, definitely make a difference, which is why I call it the theory of the roller coaster because if I think about this in my investing career, something very similar happened. Because early on in my career, about four or five years out of my investing career the.com bubble, the two thousand.com Bubble happen, right? I've been, I've been working for probably four or five years. And then I lost some money. And you know what I recuperate? It didn't feel so bad. And actually, my financial advisor was like, I don't worry, you'll, you'll get the money back. And he was absolutely correct. And so that kept going until 2008. Well, you know what, in 2008, I'm still in my 30s. But things started to I lost 33% of the value of my portfolio. It didn't feel so good. It didn't feel like it did, you know, eight years before it started feeling in the way that I just did not like, neck hurt a little bit. But you know what I decided I wanted to get off of that roller coaster because it did not feel good. And I didn't want to wait any longer to figure out hey, listen, what happens in my 40s, or 50s, or whatever the case may be. So I didn't want to do that. And then this now, in this, these years, I decided that that's a part of the roller coaster that I really don't want to be exposed to, because I don't like the way that my head feels that my stomach feels when I go left to right my neck, any of that kind of stuff. So I decided to get off the roller coaster, that roller coaster, because I had no control. But here's the thing also, too, right. And I can only imagine if you're in your, you know, in your 50s, and your 60s or 70s, or even more, like every single time the roller coaster goes down, especially like it makes your head hurt. It makes your stomach hurt, because it's really your it's your livelihood. And I started realising that I didn't want to put myself or my family in that kind of position. So I limited my exposure there very, very much. And one of the things that I wish I would have said someone would have sat down and told me about is, is this one concept as well, like timing is important. But also, like imagine that you are in your 60s or 70s or, and you have a million dollars in your retirement account, which is exposed to the Wall Street casino, which is kind of like the roller coaster we're talking about. So every single day, you're sitting in front of the TV and you're watching either your Fox News or you're watching your CNBC doesn't really matter. But you're watching the market, see what's going on. The thing is, is imagine you have this million dollars and one day the market goes this is an example, right? But it's just to kind of give you the concept. One day you're watching the market and you've got this million dollars in your account and the market goes down. 10% Or let's say it's a specific stock, but the market makes it easier. The market goes down 10%, your value goes down 10%. So you're at a million you lost 10%. And so now you are at 900,000. Well, just like most people do quite frequently, either you're watching on your phone every day, or you're watching that Fox News, you're watching CNBC, and it goes up the next day. So you feel better, like the roller coaster right? You went down and you went back up? Well, when it goes back up? 10% you think, okay, cool. I got all my money back. Well, let's do the math. Because usually you do the math, and the math tells you what you want to do. And so you went from 1,000,001 day, to the to the end of that day, you were at 900,000 Well, that lost 10%. And then you gained 10% The very next day. So you're thinking wow, cool, the market went down 10%. Now it's up 10%. So I'm cool. Well, the math on 900,000 times 10 900,000 times 10% increase is 90,000. So if you add that 900,000 plus the 90,000. Well, now you're back up to 990,000. But wait a second, 48 hours before you started at a million. There's a problem. You've just lost $100,000? Well, I never, I never really was exposed to anyone sitting down and doing the math and the roller coaster ride and how it feels and the importance of timing. I want to share that with you because timing is everything. And so once again, it goes back to I realised being clear on the investing destination that I wanted to get to understanding the different vehicles that were there, how much control I wanted, how much risk I wanted to be able to take, but also the importance of timing, and the vehicles that you're investing in and how much control you have over them how much understanding you have of them, because I started realising that this was really really important as well to me. So it's just an example, talking about the roller coaster rides. Talk about timing, because timing is super important to anyway, we talked about a lot of these different concepts also to one of the things I mentioned that probably most of the time is that what as I started looking at these different vehicles, there was one in particular that really, really helped me It helped me understand the difference between passive income, active income, and how to use a very specific vehicle to help me as an accredited investor, someone who was tired of paying a lot of money to Uncle Sam, and being able to find consistent returns and keep more of my money. If you want to find out more about something like that, go to first ncp.com forward slash going along. That way it's going to help you also recognise the importance of timing for you, and how you can take back more control over your life get closer to the destination that you want reinvesting and this piece of education, this very brief guide can help to be a part of that. So I really appreciate you being here. Continue to come back while you're sharing today's conversation with other people, share it with family, share it with friends or you're downloading and reading the guide. I'll be here preparing for the next solo episode. So until then go out and make it a great day. And thank you very much I trust that you enjoy today's conversation and once again today's conversation was sponsored by first generation Capital Partners. If you're an accredited investor want to find out more about how we're helping accredited investors to gain their personal freedom even faster. Go to firstncp.com forward slash going long.