You – not the market – are responsible for your future financial independence
CNBC news anchor Becky Quick set off a mini media flurry when she proclaimed during the “Squawk Box” segment of the channel’s morning programming on December 26th that she is “100% in equities…(because) you’re never going to make enough money if you have 40% of your money in bonds.”
That is a doozy of a statement, and – in our opinion – totally ridiculous and unfounded. No offense, Becky…but to us, such proclamations are indicative of a person who is living beyond their means and trying to offload their own fiduciary obligation to themselves onto the equity markets.
Let’s be honest…If Becky had $50 million would she be all equities? If she was saving 40% of her income, would she be all equities? If she already had enough money so that a sustainable withdrawal rate of 3-4% would satisfy her every need, would she be all equities? The answer…probably not.
Relying on hopes of outsized gains from equities diminishes our own role in securing our future financial independence. This is the easy way out!
We can control two things in our lives that determine whether or not we will become financially free: 1) how long we work, and 2) how much we spend. These are fundamentally interrelated – the more we spend, the longer we need to work to support those spending habits. Becky is choosing to introduce a third variable that we can’t control – market performance.
Relying on hopes of outsized gains from equities diminishes our own role in securing our future financial independence. THIS IS THE EASY WAY OUT! At the end of the day, the buck stops in front of you. Only you can truly safeguard your financial future by maintaining awareness and control of your Spend Rate.
Don’t leave your financial success to the vagaries of the market…take ownership of securing your future by managing what you can control – how long you work and how much you spend.