America.

Not only do we think we're inept, we think relays average American works a lot more hours and German export the average hours in the average Japanese way.

Work more hours than our parents did were very hardworking people.

Theeighties was a very special decade.

The eighties were terrific.

I just wish they'd come back.

Everybody one who invested in anything.

But now it's some.

It's a whole new ballgame.

The kind of returns people generated in the eighties are not gonna happen in the nineties.

Really, if you think about it the 19 eighties, with a decade of spending, I was out spending it more than I was saving it.

The nineties, on the other hand, is turning out to be a savings decade.

I make a dollar.

I saved 25 cents, which I never did be full up before I made a dollar I spent three make.

This is a major transition that's occurred in the economy and among the American public, and I don't think it's over.

I think in fact, we're just into the beginning of this long term savings boom.

I've never been a good saving person.

I don't like to say money.

I don't have that.

I'm horrible at saving money.

If you look at save things, rates on a worldwide basis.

Germans, I think, save more money to Odin.

Americans.

US has always had a very low savings, right.

We think they spent too much money on us on junk, I think, really living beyond my means for years now in Sweden.

The idea is that we should have one year income in the bank in case something happens in Canada.

Only three months.

The public in Japan basically saves 25 to 30% of them income.

China, for example, is in the mid thirties in the U.

S.

The range has basically been between six and 8%.

It's currently around 4%.

4% is abysmally low.

You have to say 10 to 20% a year you have or you're you're being sloppy and lazy and spending too much on clothes.

My financial ghost would be to have my own ranch house in Spain and house in Australian department Here in New York, enough acreage to hold a good few horses, win the Bermuda race herd of cattle, retire and go into archaeology.

I have my first cow.

So the herd has begun.

Watch out!

True.

I think we all dream.

I think that's the fun part of life is being able to have a a dream that hopefully someday will come true.

Well, at one time, we thought we were in really good shape.

You got enough to retire on?

Have you got enough to last your lives?

Do you think we hope so?

Just one thing after another.

And you them save.

It's that you had laid bike Seemed to disappear every day.

I have to get up at five o'clock in the morning.

I'm ready to retire in 20 or 30 or 40 years, depending on when they retire, they're gonna have to have enough money to retire on because they're not gonna work.

I realize that I can't live on Social Security is not gonna be enough there.

Nothing style of life that I want.

Social Security is not gonna be enough.

And so they're gonna have to have enough invested on their own life has 41 k.

We have Ah Kio, you have I right, But to have enough money down the road if you just invested in CDs.

You're gonna have basically what you have now because inflation will just eat away all the games I used to save using bank CDs.

CDs are very low on dhe.

I just don't think that's gonna get me where I want to be very rich.

I don't know my own financial strategies based on a day today, very existentialist type of existence.

You know, you plan for what I started planning about maybe 25 30 years ago.

I've been saving most of my life.

It's my first born so that now that she's here, pressure, Why?

I don't know why I don't have a real plan.

One of the things I see in psychotherapy is that people are afraid to take risks, and if they're afraid to take risks in their lives, they're usually afraid to take risks with their money.

And what I want to help them to do is to see that you can take a risk if you don't put out what you want.

If you don't go for what you want, you're never going to get it.

I suppose like everybody else, we're saving for retirement, retirement, retirement.

I guess someday you're looking at retirement 40 years out there, you can be aggressive.

You can take a lot of risk with aggressive growth stocks.

My retirement will probably come with the next three or four years.

Older person.

Perhaps I drive that.

Got the least Rhys is again.

They probably should not be in as risky investment vehicles because the volatility in the shorter term could have more of an impact on their return.

The key thing that people should do is to diversify.

That's one of the ways toe limit to risks.

If you don't expose yourself the one thing really, really tight, that's what I love.

It's really state.

We have money in real estate and stock.

Um, I guess, really.

Maybe we're not as different as I thought we were.

I collect old cars, have money in inventory, some stock, some collectibles.

People spend more time, you know, well spent two hours trying to save $50 a round trip air ticket to Hawaii.

They spend no time planning their next 30 years finances.

It's not that complicated.

You just have to sit down and say This is where we are.

We get plenty of life insurance if something goes wrong now.

Now, if you say what are we gonna do with the incremental dollar?

The griddle?

$1000 in $5000.

Where's we put that this year?

I spend a little time every week and looking at my portfolio, I always read the business section.

I personally do a lot of the reading.

What we need outside help.

You have to be very, very knowledgeable.

Thio do it successfully.

I think that I would prefer to do is have somebody else take responsibility for that investment advisors have different agendas.

Some just want to sell you the investment and move on to the next thing.

Other people are very committed to it and those kind of people you have to look for when I say the word stock market you what comes to confuse?

I don't even know how to read too much of a gamble for me.

It's the only way I've ever been able to make money by capital gains on the stock market.

It's risky for those who don't know it, but if you have some experience, some knowledge of the stock market, you can make a lot of money that I firmly believe that over any five year period, I will make money in my in my growth funds for a long period of time.

There's very little risk in stocks.

This is 10 15 2030 years.

If you own a group of stock to you by one stock, that's like throwing a dart.

But if you if you know something about the stock market, understand that owning a diversified group of companies you're gonna participate in the growth of America except at the market from time to time will dip.

You have to recognize that the market cannot go over.

It's up.

And the important thing to understand.

If you think long term, those dips will leave not.

And perhaps when the market dips, that's a buying opportunity on for gently.

Most people do the opposite.

When something goes up, they feel better about it.

And so what do they do?

They buy more of it.

And that's exactly the wrong thing to do, because when something goes up, the potential return down the road is lower.

And so if something goes down and it looks really dreadful in the world, looks like it's about ready to fall apart.

Step in and buy.

If you can't explain to a 12 year old in two minutes or less, what this company does you're after, right.

Rough start is that if the company goes down, how do you know whether to buy more?

You look, this company say Look at this.

I did some research companies.

No debt, 20 million cash.

The stock's going down.

That business is good.

That's great.

How?

Back up the truck and buy some more shares.

There is presently a lot of news that we're I'm going to have a correction in the near future.

Thio figure out the highs and lows that's virtually impossible unless you have a crystal ball.

People forget that if they get out, if they try to time the market, they get out and they think they're going to get back into the higher at a lower price.

You know they're making the assumption that the stock market has this trend over the long run.

This is the trend of the stock market over the long run investor that invested in 1986 in 1987 despite the fall in 1987 still has achieved above average returns over the past five or six years.

The odds are the odds are that if you get out, you're gonna be getting back in at a higher price further down the road.

One thing that has happened over the past year or two is the diversification into global investments just investing in pure country funds.

Unless your spouse works in these countries, you go there all the time.

That's just gambling.

Just a bet on one country fund, I think, is a mistake.

Focusing long term and staying diversified are too important.

Keys to reaching your financial goals with stocks sticking to a regular schedule of investing can help you ride out the stock market's inevitable ups and downs.

By diversifying with individual securities or mutual funds, you can moderate your risk as you strive for financial success in the nineties.