Protect your money. Don't lose it. In this episode, we're going to address
the question, "How do I stay calm during market crashes?" You're going to be blown
away with the answer but it has helped me live through several market crashes
and recessions in my 67 years on this planet. I want to help you also have what
William George Jordan says is a majesty of calmness. My name is Doug Andrew and
I've helped people optimize their financial assets, minimize unnecessary
taxes and empower their true what I call authentic wealth now for more than 45
years. I've been blessed to author eleven books and I have a weekly radio show
that's been on the air for over 12 years. Do you know that I let all my
professional licenses as a financial planner automatically expire. I let them
all go the last business day of 2005. Because I was set and I wanted to devote
the rest of my life to be a consumer advocate to help you understand things
that frankly I could not teach in a way that you need to understand if I was a
licensed advisor. It's pretty ridiculous. And so, that's why on this YouTube
channel what I love to do I I'm passionate about providing insights into
opportunities that maybe you didn't know existed before. But one of the favorite
books our family loves to read is actually a book that was written over a
115 years ago by William George Jordan. And the title of this book
is called the majesty of calmness. He also wrote the power of truth. If you
read this book the majesty of calmness, you will think he wrote it yesterday.
Last month for our times, not 115 years ago. This is where I
get a lot of insights and our children. And frankly, anybody I deliver this book
too. I usually deliver a copy of this book to people who were diagnosed with a
terminal illness. And they always send me this profound thank-you note because
it's about a 2-hour read but it is heavy, heavy reading. It's just jam-packed
with insights but it gives you hope and calmness when things are turbulent. So,
the answer to the question "How do you stay calm when the market crashes?" Or
when there's turbulence going on or there's natural disasters that cause the
stock market to crash or there is you know at like Covid-19 and the scare and
the virus and the quarantine that caused the stock market to dive 33% in 30 days
from mid February 2020 to mid March 2020. And so, people they get all anxious. They
sort of freeze up. Sometimes they just hunker down and they want to wait until
the market of the economy gets back up again and and they get paralyzed. This
happened in 2001. It happened in 2008. I actually started as a financial
strategist in 1974. Some of the major recessions that I've lived through. And I
actually saw some real estate values plummet in 1980. And I was a victim of my
own house going down dramatically in value and I needed to sell it, I couldn't
sell it. So, I lost a ton of my real estate equity. But I learned some
valuable lessons from that and it is explained in my first book. And I took
the wisdom what I gained the mistake I had made. And I helped other people avoid
those mistakes so that they can be calm the next time there's a recession that
happens. I remember 1987. I was out in the country where we had a cabin and there
was an earthquake that night. I actually dreamt that a bear was shaking the cabin.
And I got up and no a bear was not shaking the cabin. But I turned on the
news and I found out the 1987 October crash. But I had this majesty of calmness
because none of my clients lost any money on that day. From 1974 to 1980, I
ended up with over 3,000 clients in 13 western states. Most of them had
diversified portfolios and mutual funds. But when the market went down, I was
inundated with phone calls. Not by 1987, I had learned. None of my clients lost
money in 1987. None of them lost money in 2001 to 2003
when most Americans lost 40%. None of my clients lost money in 2008 when most
Americans lost 40% in one single year. In fact, a lot of our clients were like
cheering. "Go! Go!" Because they weren't losing. The first 90 days of 2009, they
locked in gains of 16% on the average after not losing a penny. The
same thing happened early in 2020. Our clients had a majesty of calmness
because their money was not in the market. It was linked to the market but
if the market goes down, they don't lose. When the market goes up, they participate.
And most people go, "What? That sounds too good to be true." No, it's true. The message
here first of all is I've already made the mistakes. Why is it that sometimes we
don't learn from previous people's mistakes or economy or whatever. And so, I
have devoted my life to helping my clients and customers, my students, my
mentees to learn how to avoid the mistakes that I made. So, after learning
that lesson clear back in 1980, 1982 I wrote a book about how to protect your
real estate equity. So, that in any real estate crash, you don't lose. And so, ever
since then whenever the real estate market has gone down, I have not lost a
dime. I've kept my real estate equity safe. And it's been liquid, I've not
lost the value. Even if the value of the property goes down,
did not lose my equity. When the stock market crashes and it goes down, I can
sleep at night when the wind blows. Well, where's the wind coming from? Remember
the story of the big bad wolf? Yeah. If you remember, it was actually the story
of the three little pigs. One built his house out of straw. Well, I
would compare that to the stock market. And that the big bad wolf, what's that?
The recession's, the viruses, the earthquakes and the
floods, tornadoes, hurricanes, all of these things that caused us a disruption and
caused the market to go down. And it's a ripple domino effect. When those things
happen, it's like the big bad wolf blowing down the stock market. Well, I can
sleep when the wind blows because my money is not in the market. My money or
return is linked to whatever the economy's doing. If the economy is doing
well, I've made 16%. Some years 25%. One year, I made 55%.
But when the market goes down, I don't lose because my money is not
actually in the market. The return that I'm getting is linked to what the market
does. But if the market goes down, I may not make anything that year but I don't
lose. And this is where I have averaged 10.07% for the last
25 years. You can do this too. But also, you want to protect yourself
from other factors that this causes an inflation. Because usually when there's
economic bailouts and stimulus. The government shells out money and then the
taxpayers end up paying for it because taxes go up. So, I would make my clients
immune from taxes going up by converting their hard-earned savings to tax-free.
And so, this is one of the critical concepts we need to understand to be
able to have a majesty of calmness when the big bad wolf flows down the stock
market or the real estate market. Where do I put my money safely tucked in a
house of bricks so that when all those winds blow, the big bad wolf, the house
stands. And that's where I put my hard-earned serious cash so I don't lose
when these things happen. And I can actually sleep when the wind blows. I
have this majesty of calmness. And this is what I would love to provide for you,
anybody you care about. I want you to watch this episode here and you'll see
one of the favorite financial vehicles that I use. And you can get a free copy
of my book The Laser Fund. You can go to laserfund.com. But you'll understand how
this provides calmness in these topsy-turvy times. And we have the market
whip sign and you don't have to worry about your serious cash especially
during retirement to the winds and the storms, the economic downturns because
you're immune from those things. And every million dollars can generate
80 to 100 thousand a year of tax-free income no matter what happens
in the economy because I know I've lived through the 1980, '87,
2001, 2008, 2020 recessions. And every time we came through, many of our clients
ended up with three times as much money at the end of the day as people in the
market in traditional IRAs and 401Ks. So, click here. Watch that episode and I
want to send out a free book to you.