What’s Cracka’ Lackin',

This is the Master Money Newsletter. We’re the best part of any wealth builders’ morning.

Unless you eat Recess Puffs cereal… that would technically be the best part of your morning. But hey, we’ll take 2nd.

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Here’s what we have on deck today:

• Should you sell when the market goes down?
• The book I am reading now
• 46% of Americans continue to make this expensive credit card mistake.

Now, let's get to the good stuff.

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The S&P 500 has felt like riding a rollercoaster as of late.

If we are honest, we are all getting off with messy hair, looking for a barf bag.

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For new investors, this may be testing their investment philosophies. For seasoned investors, this is all just part of the game.

In short, emotional investors care. Long-term investors don’t.

Remember when you invest your money, slow and steady wins the race.

Some people have gone as far as asking the question, should I stop investing when the market is down?

Can you guess what I am going to say? I bet you can.

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Today, I am going to explain why you should never stop investing but especially when the market is down.

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1/ The Market Rebounds With a Force Once it hits the Bottom

Here are some fun-filled facts (FFF) you can share with the home slices at the water cooler:

Once the stock market bottoms the average recoveries are wild. They are:

• 1 month from the bottom: 15%
• 3 months from the bottom: 21%
• 12 months from the bottom: 44%
• 24 months from the bottom: 63%

Trust me you don’t want to miss these recoveries, in the next point I am going to show you why.

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2/ If you miss a select few days in the market you can kiss your returns goodbye

J.P. Morgan did a study. They looked back over the 20-year period from Jan. 1, 1999, to Dec. 31, 2018, if you missed the top 10 best days in the stock market, your overall return was cut in half.

That’s a significant difference for only 10 days over two decades!

Here’s how a $10,000 initial investment fared over the past 20 years depending on if its investor stayed invested or instead, missed some of the market’s best days.

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You go from a positive return to a negative return, just by missing the best days.

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What can we learn from this? 3 lessons.

The lessons are simple on paper.

1. Dollar-cost average into low-cost index funds.
2. You will not be able to guess when the time comes.
3. Invest for the long term no matter what the market is doing.

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High-Performance Book Club 📚

I get a ton of questions from listeners and readers as to what I am reading. So we decided to let you know via the newsletter. The High-Performance Book Club will be a way to share this. If you want to be Elite in your career, business, or with your wealth, then welcome to the club.

​The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement​

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​Check out all the books we have read here.​

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10-second tip of the week ⏰

46% of Americans continue to make this expensive credit card mistake.

46% of Americans incorrectly believe that leaving a small balance on their card is better for their credit score than paying off the balance each month, a recent NerdWallet study found.

Doing this increases your credit utilization which lowers your credit score.

In fact, studies have shown that people with a credit score above 790 use 8% or less of their credit utilization.

Use this as a rule of thumb to increase your credit score.

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Podcast/Youtube

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​How to Protect Your Wealth and Assets With a Will ​

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