Building Wealth Over the Decades – YouTube Video & Transcript

In this video, David Gallacher, CFA – Partner and Portfolio Manager at C.J. Lawrence, takes a look back at the last several decades of the stock market from a general perspective. David also talks about the need to take a long-term approach to the process of investing and building a retirement nest egg. His philosophy is to build a strong plan over time in order to control your financial future.

Video Transcript

David Gallacher, CFA:

The teenies, or whatever you call the last decade, was a great, and I mean great decade to be invested. I’m now in my sixth decade, if you count diaper time, and I’ve still got a way to go. But for someone approaching retirement, you’ve really clocked a full five decades of working pretty much, and you’ve seen markets through various periods. And from a market standpoint during those decades, one was, let’s call it pretty bad, the 1970s. Soaring inflation, high unemployment. In the UK where I’m from, I was born into a three-day week. The country didn’t have enough coal to even power its factories full time. Even here on the US you could only buy gas on alternate days during a fuel crisis. That’s unimaginable here or there today. Try getting somebody to invest in 1974. Not a good time.

David Gallacher, CFA:

Of the decades that followed the ’70s, three were extraordinarily good. The ’80s, ’90s and the one that’s just gone, let’s call it the teenies. And one of them was, well naughty, a bit like the Irish Sea. You don’t go very far, but it’s very rough. The naughties was a difficult period for many reasons. But if you graduated from college in the ’70s or the late ’60s and started working and investing, you would have built a great retirement nest egg. All of the main financial asset classes have worked, bonds, real estate and stocks, during this several decade period.

David Gallacher, CFA:

So if you take that wide lens when thinking about longterm investing and saving, you’re going to travel through very difficult periods. And they may be at the start, the middle or the end, and they may occur multiple times during your professional life. But if you stay within your means, diversify, and remain disciplined, you’ll be just fine. There’s always an asset class that’s working even in the worst of times. So please, no more excuses. You will regret it.

David Gallacher, CFA:

During the past decade, the S&P 500, the annual return on the S&P 500 was over 13%. Every day I turn on the news and it’s doomsday. The NASDAQ, which is a proxy for tech and other high growth industries such as healthcare for example, that was up even higher than 13%. And that’s not even the best of it. According to my friends at my former shop, Coutts and Co in London, they run a luxury index. The best asset class over the past 10 years was actually classic cars. Following that, you actually have fine wines. So you can even invest and have fun while doing it.

David Gallacher, CFA:

I don’t know what this decade will bring, but I trust the process, I trust our work, and I have enough time to weather the difficult periods that will no doubt lie ahead. But if your runway is shorter, you can dial down your risk exposure. If your runway is longer, you can dial that risk exposure up. Wherever you are in life, there is the right plan for you and you will be rewarded. But if you hide under the bed, the future is uncomfortable and it’s pretty dark. Sleep tight. Don’t let the bed bugs bite.

David Gallacher, CFA:

You don’t need to start big to invest. You just need to build. If you had invested $1,000 a month over the last decade, you would have roughly $250,000 today. Stretch that over several decades and dial up the amount as your means allow over the years, and well, congratulations. You can probably head down to Duval Street in Key West and party with Jimmy Buffet into the sunset.

David Gallacher, CFA:

Investing is my profession, so I take it for granted. Don’t have access to all the tools and experience available to build a strong plan. Now, many of you don’t have that time, don’t have the access or the constitution to put up with the constant barrage on our favorite TV channels and new sites. Now that’s what I’m here to do, is to help you build, preserve, and convert that wealth into a comfortable life for you and your family in the future. So if you’d like to get started, the best day is today. Give me a call. Take control of your financial future. I want your three-day week to be a choice, not a crisis. You can find my email, telephone number on this link. Happy new decade, and I’ll see you next time.

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