Near death experience

cpr_chest_compressions_7097
Near Death Experience
I was driving back from the grocery store as I’d done a thousand times.
I crossed the busy intersection, only this time from the corner of my eye I caught the shape of another vehicle zooming straight for me.
There was no time to react.
The SUV was headed straight for my door.
Bam! The cabin exploded in a grey dust as the side airbags deployed.
Shooting pain in my chest turned into panic.
Can’t breathe!
Can’t see!
Was this the way it was all going to end?
Killed in a Range Rover after returning a horrible Scarlett Johansson movie to Red Box?
After what seemed like an eternity, I took in my first painful breath.
The air was thick with a combination of exhaust fumes and gasoline.
I could feel a sticky liquid flowing from my nose.
I wiped my hand across my nose, expecting to see blood.
It was a clear fluid.
The crash had literally knocked the snot out of me.
What seemed like the entire fire department showed up after 30 minutes.
They proceeded to cut me out of my SUV with the Jaws of Life.
After several loud “pops,” the battered door was pulled off, and they placed me on a stretcher.
For the next three hours, I viewed the world from my back, as I was whisked away by ambulance to a trauma center in Mission Viejo, 25 minutes away.
This week marks the second anniversary of that horrendous day.
Turns out that a lady ran a red light at 50 mph, and never hit her brakes as she made a b-line right for my door. T-boned at full speed.
Luckily, I was in the Range, which has specially designed seats and airbags just for the occasion.
I probably wouldn’t have been able to limp out of the hospital that night if I was in another vehicle.
After the accident, I heard from dozens of people that had similar car crash experiences.
While their circumstances were different, they nearly universally agreed that they wanted to work less and enjoy life to the fullest instead of being stuck in the rat race.
What good is working hard if you don’t even have time to enjoy it?
Even though I had no idea how to accomplish it, I’ve known from a young age that investing is the path to working less and enjoying life to the fullest.
That’s because you’ve only got so many hours a day to work, yet your investments can snowball into immense fortunes with a fixed amount of attention – whether you have $10,000 or $10 million.
It’s the ultimate way to leverage your time.
The trend these days is to take control of your finances, and get it out of the hands of the “professionals” that charge massive percentage-based fees.
Most are taking that money and putting it into exchange traded funds (ETFs) like SPY, a fund that buys all the stocks in the S&P 500.
That’s smart because they only charge a 0.09% management fee per year.
Another popular ETF is the iShares 20+ year U.S. bond fund (TLT).
Its expense rate is slightly higher at 0.15%, but much lower than if you gave you money to one of the popular mutual funds (only $150 for a 100k account).
Typically, financial advisors recommend a split of 60% stocks, 40% bonds.
That’s generated an average annual gain of 7.6% per year since 1871.
Unfortunately, you and I both know those gains aren’t going to allow you to retire with a comfortable income.
Instead, there’s a way that allows you to switch between stocks (SPY), and bonds (TLT) every few months that’s more than doubled the performance of “buy and hope” with about half the risk.
That’s the difference between a 372% return in 20 years, and a 3,848% return.
Which would you rather have?
The secret to generating these outsized returns is in understanding how a tiny little market actually controls the entire U.S. stock market using massive leverage.
Warren Buffett describes it as a “weapon of mass destruction.”

 

Trade smart,

 

Dan “Prince of Proof” Murphy