3 Things 3-27

Thing One Gold versus Stocks What’s the better investment, gold or stocks? Well, that depends. The value of gold tends to rise when investors are worried about inflation or market instability as it is a physical asset that holds its value over time. However, investing in gold comes with its own set of challenges. Gold is a commodity, and its price can be subject to supply and demand fluctuations that may not be related to broader economic conditions. Additionally, gold doesn't generate any income so investors cannot earn dividends or interest from holding it. Investing in the S&P 500 (the stock market), on the other hand, can be a good way to gain exposure to a diverse range of companies across a variety of sectors, which can help mitigate risk. However, it comes with its own set of challenges. The stock market can be volatile and unpredictable, and individual companies can experience significant swings in value based on a variety of factors, including economic conditions, competition, and management decisions. The chart below shows that you’d have come out well ahead by investing in the S&P 500 from 2010 through 2022 as gold’s total return was 69% before inflation and 43% after, while the S&P 500 returned 350% (including dividends) pre-inflation and 324% after inflation. But that doesn’t mean stocks are always the “better” investment. When deciding whether to invest in gold or stocks, it's important to consider your individual investment goals, risk tolerance, and time horizon. If you are looking for a long-term investment that can help you build wealth over time, the stock market is likely the better option as stocks tend to perform well over the long run. If you are looking for a short-term hedge against economic uncertainty, gold may be a better choice as it tends to hold its value during times of market volatility. Ultimately, the best investment strategy will depend on your individual financial situation and investment goals.

Thing Two Why Buy An Umbrella Policy An umbrella policy is a type of insurance policy that provides additional liability coverage beyond the limits of your existing auto, home, or other insurance policies. The primary purpose of an umbrella policy is to protect you from financial loss in the event that you are sued for damages that exceed the limits of your other insurance policies. There are several reasons why you may want to consider purchasing an umbrella policy. First, accidents happen, and they can be costly. If you are involved in a serious accident and are found to be at fault, you could be held liable for damages that exceed the limits of your auto insurance policy. An umbrella policy provides an additional layer of protection, so that you can be confident that you are covered for any unexpected events. Second, an umbrella policy can protect your assets. If you are sued for damages and your existing insurance policies are not sufficient to cover the costs, you could be forced to liquidate your assets, such as your home or savings, to pay the damages. An umbrella policy can help protect your assets by providing additional coverage. Third, an umbrella policy can provide peace of mind. Knowing that you have additional liability coverage can help reduce your stress and worry in the event of an accident or other unexpected event. It is important to note that umbrella policies are not just for the wealthy. Anyone can be sued for damages that exceed their insurance limits, and an umbrella policy can provide valuable protection for a relatively low cost. The cost of an umbrella policy will depend on a variety of factors, including your coverage limits, your age, and your driving record, but in general, the cost is relatively low compared to the amount of additional coverage you receive. The conventional wisdom in liability insurance is that “your insurance should always look better than you”. In other words, if you get into an accident where you are at fault, the first thing an ambulance-chasing lawyer will do is determine whether he can make more money by going after your assets or your insurance company. Having an umbrella policy in force is a good way to make your insurance company looks better than you. And since the policies are relatively inexpensive, getting one should be a no-brainer.

Thing Three Just A Thought "Action is the real measure of intelligence." - Napoleon Hill