{"id":15766,"date":"2020-02-04T16:00:20","date_gmt":"2020-02-04T21:00:20","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=15766"},"modified":"2020-02-04T16:00:20","modified_gmt":"2020-02-04T21:00:20","slug":"the-five-bucket-strategy-to-protect-your-wealth","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-five-bucket-strategy-to-protect-your-wealth\/","title":{"rendered":"The Five-Bucket Strategy to Protect Your Wealth"},"content":{"rendered":"<p><strong>Mike&rsquo;s note: <\/strong>At <em>Market Minute,<\/em> we believe in making smart trades that provide consistent profits. However, we also believe in keeping those profits safe after the check\u2019s cleared\u2026<\/p>\n<p>Today, our colleague and editor of <em>Strategic Trader<\/em>, E.B. Tucker, tells you about the five main types of &ldquo;asset classes&rdquo; he says you <em>need<\/em> to maintain financial independence&hellip; resulting in more stable wealth, without giving up your aim for massive profits.<\/p>\n<p>Read on to hear what E.B. says about building wealth, and <em>keeping<\/em> it&hellip; and <a href=\"https:\/\/apiservices.krxd.net\/click_tracker\/track?kxconfid=tv310ob58&#038;kxadvertiserid=%%memberid%%&#038;kxcampaignid=%%=URLEncode(emailname_)=%%&#038;clk=https:\/\/signup.caseyresearch.com\/?cid=MKT445974&#038;eid=MKT447206&#038;step=start&#038;plcid=PLC063397&#038;email=%%emailaddr%%&#038;encryptedSnaid=%%ENCRYPTEDSNAID%%&#038;emailjobid=%%jobid%%&#038;emailname=%%emailname_%%\" target=\"_blank\" rel=\"noopener noreferrer\">click here to find out about his latest investment that&rsquo;s given his subscribers an 857% gain<\/a>&hellip;<\/p>\n<hr>\n<p>It wasn&rsquo;t easy to get rich&hellip;<\/p>\n<p>It took me years of perseverance and hard work that few people are willing to dedicate themselves to.<\/p>\n<p>But when I finally achieved my dream of financial independence, I realized the hard work was just getting started.<\/p>\n<p>If you&rsquo;re like most people, you probably have the wrong idea about wealth.<\/p>\n<p>Even if you have a lot of money, you&rsquo;re still focused on <em>getting<\/em> rich.<\/p>\n<p>But you only have to get rich once.<\/p>\n<p>After that, your goal should be to <em>stay<\/em> rich. Meaning you have to protect your wealth.<\/p>\n<p>Rich means different things to different people.<\/p>\n<p><u>But no matter what your level of wealth is, it&rsquo;s vital you guard your wealth&hellip; and not swing for the fences on every pitch<\/u>.<\/p>\n<p>That&rsquo;s why I developed a simple wealth-protection strategy. It makes sure I <em>stay<\/em> rich no matter how the market behaves.<\/p>\n<p>And today, I&rsquo;ll share it with you&hellip;<\/p>\n<h2 align=\"center\"><strong>Picture Yourself on a Bridge<\/strong><\/h2>\n<p>Picture yourself carrying five buckets of water across a narrow bridge.<\/p>\n<p>If any of the buckets gets too heavy, you&rsquo;ll lose your balance, tip over, and fall off. You need to make sure all five buckets are balanced, so you can get across safely.<\/p>\n<p>Each bucket represents an &ldquo;asset class&rdquo; (a group of similar investments) that makes up your portfolio. If you want to continue to have financial independence&hellip; and avoid falling off the bridge&#8230; you have to get the right balance.<\/p>\n<p>The result is more stable wealth&#8230; without giving up your quest for outsized profits. I like investing this way because I no longer worry about trying to maximize my profit on every trade&#8230; or every time the market changes course.<\/p>\n<p>Now, it&rsquo;s up to you to determine what you put in your buckets. But these are what my five buckets look like today:<\/p>\n<ul>\n<li>\n<p>Gold<\/p>\n<\/li>\n<li>\n<p>Long-term stock holdings<\/p>\n<\/li>\n<li>\n<p>Real estate<\/p>\n<\/li>\n<li>\n<p>Cash<\/p>\n<\/li>\n<li>\n<p>Speculations<\/p>\n<\/li>\n<\/ul>\n<p>Let&rsquo;s go through them&#8230; and why they&rsquo;re the best way to grow, and protect, your wealth today.<\/p>\n<h2 align=\"center\"><strong>Wealth Bucket No. 1 &ndash; Gold<\/strong><\/h2>\n<p>Gold is cyclical. It tends to get hot and go on a run. The run usually lasts several years and includes a few soft patches&#8230; which is when savvy investors get in.<\/p>\n<p>There&rsquo;s also a downside to the cycle. That&rsquo;s where we&rsquo;ve been for about seven years. But now, we&rsquo;ve officially entered an upswing in the cycle.<\/p>\n<p>When gold is cheap, I pour money into it. <u>And it&rsquo;s the cheapest of the five buckets right now. <\/u><\/p>\n<p>I don&rsquo;t view gold as an investment. It&rsquo;s a way to protect your savings. It&rsquo;s survived every financial crisis, and it will continue to do so.<\/p>\n<p>I don&rsquo;t think about this bucket often. I just get the gold&#8230; vault it&hellip; and move on.<\/p>\n<h2 align=\"center\"><strong>Wealth Bucket No. 2 &ndash; Long-Term Stocks<\/strong><\/h2>\n<p>One bucket is for stocks I plan to hold for the long haul. I typically own between six and eight stocks at any given time.<\/p>\n<p>I don&rsquo;t trade these stocks often. I&rsquo;m only a seller if something happens that changes the business landscape for one of the companies.<\/p>\n<p>This bucket is for real businesses&#8230; not hot-potato trades.<\/p>\n<p>These aren&rsquo;t the most exciting investments in the world. But over time, there&rsquo;s huge value in owning stakes in rock-solid American businesses.<\/p>\n<p>You end up with companies that slowly capture market share from their competitors, invest money back into their businesses, and pay dividends.<\/p>\n<p>I don&rsquo;t see how you can get hurt having this bucket represent 20% of your wealth.<\/p>\n<h2 align=\"center\"><strong>Wealth Bucket No. 3 &ndash; Real Estate<\/strong><\/h2>\n<p>Another one of my buckets is real estate. But it&rsquo;s important to note that this bucket &ndash; like the others &ndash; should change along with where you are in your life and market conditions.<\/p>\n<p>I put most of my money into a real estate bucket in 2009 and 2010. The U.S. housing market had just crashed. If you had the money, you could buy houses for next to nothing.<\/p>\n<p>That&rsquo;s exactly what I did&hellip;<\/p>\n<p>I bought six single-family homes. I bought one of them for just $10 per square foot. I spent another $10 per square foot fixing the place up. So I put about $20 per square foot all-in.<\/p>\n<p>The guy before me paid $160 per square foot&#8230; and ended up in foreclosure because he bought near the peak of the housing bubble.<\/p>\n<p>Today, I&rsquo;m not adding to my real estate bucket. There just aren&rsquo;t great deals out there. This is key to how I invest. Rather than fight the market, I let it determine how I allocate my money.<\/p>\n<p>It&rsquo;s a mistake to look at your home as an investment. If you buy a shack, and you plan to live in it while you remodel it until you sell it, that&rsquo;s an investment.<\/p>\n<p>Otherwise, you&rsquo;re buying shelter. And that&rsquo;s not something to speculate on.<\/p>\n<h2 align=\"center\"><strong>Wealth Bucket No. 4 &ndash; Cash<\/strong><\/h2>\n<p>Cash should also be one of your buckets.<\/p>\n<p>You want to sit on plenty of cash. This way, when an opportunity shows up, you&rsquo;re ready&#8230; and able&#8230; to invest.<\/p>\n<p>When assets go on sale in a crash, most people don&rsquo;t have the cash to take advantage.<\/p>\n<p>They watch once-in-a-lifetime buying opportunities come and go&#8230; only to say they wish they had the money.<\/p>\n<p>The exact amount of cash you choose to hold is up to you. If I&rsquo;m 25% in cash, that&rsquo;s pretty good.<\/p>\n<p>It&rsquo;s up to you how to determine how much of your wealth goes into each bucket. But you want to have a plan and stick to it and avoid putting all of your wealth into one or two buckets.<\/p>\n<p>In the 2008 market crash, you didn&rsquo;t need to be 100% in cash to take advantage. I had stocks that went down a lot. But I had some cash to take advantage of other opportunities, such as the real estate deal I mentioned.<\/p>\n<h2 align=\"center\"><strong>Wealth Bucket No. 5 &ndash; Speculations<\/strong><\/h2>\n<p>Speculations should be one of your buckets&#8230; but this bucket should only be a small percentage of your wealth.<\/p>\n<p>This protects your downside risk. And you only need a small grubstake to make a small fortune in the right kind of speculation.<\/p>\n<p>The key is separating good speculations from bad ones.<\/p>\n<p>As a professional investor, a lot of opportunities come across my desk. Most of them aren&rsquo;t worth my time. You have to pass on a lot of bad speculations before you find a great one.<\/p>\n<p>There are plenty of good speculations in stocks right now. But I&rsquo;m most excited about a different type of opportunity called &ldquo;Omega Shares.&rdquo;<\/p>\n<p>They only require a small stake to produce life-changing gains. I&rsquo;ve seen them rack up triple-digit gains&#8230; sometimes in under a year.<\/p>\n<p>In fact, my readers are already sitting on an <u>857% gain<\/u> thanks to these &ldquo;Omega Shares.&rdquo;<\/p>\n<p>Most investors don&rsquo;t know how to access these shares. Wall Street tries to keep them hidden from you.<\/p>\n<p>I can&rsquo;t reveal too much about &ldquo;Omega Shares&rdquo; here. But you can find out how to profit from them by attending my free <a href=\"https:\/\/apiservices.krxd.net\/click_tracker\/track?kxconfid=tv310ob58&#038;kxadvertiserid=%%memberid%%&#038;kxcampaignid=%%=URLEncode(emailname_)=%%&#038;clk=https:\/\/signup.caseyresearch.com\/?cid=MKT445974&#038;eid=MKT447206&#038;step=start&#038;plcid=PLC063396&#038;email=%%emailaddr%%&#038;encryptedSnaid=%%ENCRYPTEDSNAID%%&#038;emailjobid=%%jobid%%&#038;emailname=%%emailname_%%\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Explosive Profits Summit<\/em> tomorrow, February 5 at 8 p.m. ET<\/a>.<\/p>\n<p>I&rsquo;ll share all the details with you then&#8230; I&rsquo;ll even give you my top &ldquo;Omega Shares&rdquo; recommendations. You can buy these immediately and put them in your speculations bucket in your portfolio.<\/p>\n<p><a href=\"https:\/\/apiservices.krxd.net\/click_tracker\/track?kxconfid=tv310ob58&#038;kxadvertiserid=%%memberid%%&#038;kxcampaignid=%%=URLEncode(emailname_)=%%&#038;clk=https:\/\/signup.caseyresearch.com\/?cid=MKT445974&#038;eid=MKT447206&#038;step=start&#038;plcid=PLC063396&#038;email=%%emailaddr%%&#038;encryptedSnaid=%%ENCRYPTEDSNAID%%&#038;emailjobid=%%jobid%%&#038;emailname=%%emailname_%%\" target=\"_blank\" rel=\"noopener noreferrer\">Click here now to reserve your spot<\/a>.<\/p>\n<table>\n<tr>\n<td><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.bonnerandpartners.com\/BBD\/signatures\/eb-tucker-signature.png\" width=\"90\" height=\"71\" alt=\"signature\"><\/td>\n<\/tr>\n<\/table>\n<p>E.B. Tucker,<br \/> Editor, <em>Strategic Trader<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It wasn\u2019t easy to get rich&#8230; <\/p>\n","protected":false},"author":43,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[55],"newsletter-type":[],"ticker":[],"class_list":["post-15766","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-e-b-tucker"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/15766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=15766"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/15766\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=15766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=15766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=15766"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=15766"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=15766"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=15766"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=15766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}