The greatest wealth building opportunities can be seized by investors with the right wealth plan, sound preparation and a positive outlook on money and life, says Jonathan Krueger.
According to Jonathan, living a richer life by design requires you to develop a positive relationship with money, which will have a flow on effect on the decisions you make and habits you develop.
Jonathan Krueger is the CEO of Lionsgate Advisors in St Louis, USA, and has been active in the personal finance industry for over 20 years.
He believes that you need to be proactive in your approach to the global pandemic and be prepared for the opportunities waiting at the light at the end of the tunnel.
“My dad had always taught me to find reasons to celebrate the small things in life and celebrate frequently, but I hadn’t ever had it demonstrated financially. And so, when I saw that happen, when we’re able to implement that, it meant the world to me and to really change the trajectory of how we live our lives today,” Jonathan told KnowHow founder Bushy Martin on the Get Invested podcast.
“Undoubtedly, everyone believes that it’s going to be rocky going forward. But yet the markets continue to surge … eventually, there has to be a reckoning. And when that day comes, we’re going to see a lot of people that, if you’re not in cash already and prepared to take advantage of those great buying opportunities, you’re going to wish you were.
“You’ve got to be prepared. The next 30 months will become one of the greatest wealth building opportunities that we ever see in our lifetime. Because if we’re prepared for it, we can take advantage of that.”
Jonathan explained that a fulfilling relationship with your finances is also about the team you surround yourself with and your flexibility.
“What questions are you asking to make sure you’ve got the right team?” he said.
“If you don’t have the investment team or strategist that’s helping you think through economically where the opportunities are, you may miss them.
“With wealth, there’s different approaches and you have to be able to have the right equipment, but then also know how to navigate a changing environment with some of the skill to do so.
“You need to be able to have the right team approach on the ascent, and also the descent, because, when you’re accumulating wealth, the terminology is ROI (return on investment). But when you’re retiring and trying to convert that wealth to generate the income for you, then you want that to be a reliability of income, so ROI turns into a different form. It’s not just the accumulation – you want the sustainability, because it’s hard to have consistent income from volatile assets.”
Your bond with money and wealth building is also defined by your ‘happy habits’. Jonathan said a key habit is developing a ‘game plan’ on how to pivot before you fall into financial strife.
“What are those small decisions that you make on a routine basis over long periods of time? That gives you a trajectory toward success and towards accomplishing those goals, goals that you mapped out 20 years ago.” he said.
“If you’ve got a lot of money there’s usually financial problems, and the financial problems are in the form of taxes and in the form of diversifying and using uncorrelated investment strategies. And if you don’t have a lot of money, you’ve got money problems and you’re always worried about the ups and downs of the market … but you don’t have any knowledge of what you’re actually looking for.
“So, your emotions are tied to it versus having an algorithm or a rules-based approach that helps you be able to make logical decisions versus emotional ones.
“So, you’ve got to have a plan when it comes to your wealth. And you’re always re-evaluating those decisions, but you’re doing it over periods of time. You’re just not having knee-jerk reactions because the price changed on a commodity one day or another. But you’re working a plan and planning your work.
“Think through what are the economic or political events or life stage events that you might experience or that are cyclical and sometimes at different times in life. But also those that are unknown, they’re unsystematic, they’re not something we can prepare for that you may feel like is more particular to you or your own strategy.”
Finally, he touched on the importance of diversifying and using alternative investment options to achieve your ideal lifestyle.
“I really think we have to develop outside of our traditional models with alternative investments like real estate or even looking at hedging, cryptocurrency or crowdfunding … looking at other assets that, if we go into a global depression, can sustain the market volatility over a 10 year run,” Jonathan said.
“Historically we haven’t seen this type of global reset, if you will, from a global economic standpoint … but that’s really going to create an incredible wealth building opportunity for those that are prepared to take it, if they use uncorrelated asset classes and strategies to achieve those goals.”
Listen to Bushy Martin’s full interview with Jonathan Krueger here.
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