Perpetual stew a forever brew, has been around since Medevil times; so I've read.
A Perpetual Stew is continuously simmered preserving it from the likes of bacteria. The stew sits around 200 degrees Fahrenheit, the minimum temperature to kill bacteria is 165 degrees Fahrenheit. The consistent temperature simmer above 165 degrees allows the stew to maintain a continuous edibility since bacteria cannot proceed to grow.
As the stew lowers in volume the idea is to replenish it with available ingredients, broth, and/or water to continue it's everlasting supply.
In theory a Perpetual Stew could feed the family for decades pending the effort put forth in it's preservation. This is exactly how I feel one's investment portfolio should treat them, Perpetual Stew and portfolios have a lot in common. If properly tended to, continuously added to, and carefully simmered a well groomed financial plan can feed a family for decades to come.
Easier said than done right?
Absolutely!
What the goal should be is to get the cauldron cooking, impliment the early ingredients, and gain confidence in your own abilities. I think when it comes to money the lack of education makes people feel uneasy.
No matter what academic education level someone is at, the securities markets are very intimidating if you've never actually visited them.
I can honestly say I have completely stopped talking to people about the markets, anyone with a SSN, bank account, and half a brain can become an investor; myself included. The seperation comes from the hard miles invested in the depth of the markets. The real hours spent analyzing, investing, losing, and brewing; my perpetual stew is on year five now. It has taken thousands of dollars traded, thousands of dollars lost, a hiatus, and a short stint with some professionals in the business to learn the proper recipe; and I still don't really have it all figured out. But! My confidence is huge and my understanding of the markets is eons ahead of a majority of Americans. I can have conversations with "professionals" and be comfortable.
Becoming comfortable is huge because this means you have become confident, becoming confident means you've invested genuine time in the craft. You can do this by starting out slow and steady, reading, and studying different companies.
Read into companies that reside in the realm of your interests to give yourself a slight leg up since you should already be familiar with them. The goal here should be to create a portfolio out of five companies you prefer and invest in fractional shares.
(Fractional Shares: Purchasing a portion of a stock at a price you can afford.)
You don't have to come into the markets with a big nest egg, we are not trading here people, we are investing.
Once you have your chosen prospects proceed to research the available platforms offering the ability to purchase fractional shares; Fidelity, E-Trade, Webull (My personal favorite), and Robinhood just to name a few. I will say Robinhood is not my first choice, Robinhood does not carry FDIC (Federal Deposit Insurance Corporation) insurance but does carry SIPC (Securities Investors Protection Corporation) insurance.
Technically your money is safer in Robinhood as stocks, not having FDIC insurance means Robinhood is not technically a bank; while funds may earn interest as USD in a Robinhood account. In the event of a crisis your USD will carry no warranty; FDIC insures your money for up to $250,000 in the event of a crisis.
SIPC insurance covers stocks and bonds, i.e. securities and cash for up to $500,000 in the event your brokerage goes under. The aformentioned events are rare, but have definitely happened so as your perpetual stew grows it is absolutely something to consider.
Any way, i'm getting off topic. Once you make your choice of platform, I would recommend depositing $100.00 and purchasing a $20.00 fractional share of each stock from your list of five. This will get the ball rolling and mean that you are officially investing! Now, proceed to the settings section and setup a weekly deposit into chosen platform, I implement a $60.00 deposit every Monday through Webull. I'd say start with $25.00 equaling $100.00 a month, and set an auto purchase for $5.00 of each stock for every Wednesday.
Now your $25.00 will go into the platform from external bank on Monday, clear on Tuesday, and stocks will be purchased Wednesday; your Perpetual Stew is officially brewing.
The goal should be to get to $50 a week being implemented in your stew, $200 a month; that is $2,400 annually invested for a full calandar year, this is excluding if your investments happen to grow along the way. Once this feat is reached, it is time to consider bringing in a professional to really ramp things up. Or you can continue to add ingredients to the cauldron and raise your stews volume, my stew is simmering with ten different ingredients currently.
But a professional is going to be able to help you expand your horizons beyond your cauldron of Perpetual Stew, offering you more options that can meet your financial capabilities. Since you've created your own recipe and know how you like it stirred; you can offer the professional suggestions about how you would prefer things be done. The fact is professionals can create from nothing and they do it very well, but having a real idea of what you want can greatly amplify a pros ability to execute.
Most importantly you are confident in yourself because you have worked so hard to keep your stew at the perfect simmer, now when the pros offer information it should be much less intimidating.
I like to think we all share the same ideal, that is when I food shop I do not view it as an expense I view it as an investment in my body and mind. I hold no budget when it comes to treating myself well. Good clean ingredients are expensive upfront but offer better nutrition, better nutrition creates a healthier you. This is how we need to learn to view our investment portfolios, it is not an expense, it is an investment.
If we do not learn how to view financial structure as a necessity, and place it in the same catagory as paying the mortgage. We will never be able to get ahead in the future, to many people are going to have to have a job well into their seventies and already do. I am hard pressed to say a majority of those individuals did not plan properly; I will not say all because obviously humanity is volatile and unfortunately some people experience a hardship I wish upon none of us.
So to those individuals I apologize for seeming insensitive, but I'd bet my last buck that the ones who did not plan properly exponentially outweigh those who had a financially crushing hardship. You don't have to be part of the statistic, your Perpetual Stew can start right now; it is up to you to fire up the cauldron and bring the water to a simmer.
Christopher J. Roes
Biased, Un-licensed, Author
Disclaimer: While I appreciate you reading I am not a professional, I do not carry the proper credentials to offer someone financial advice. Everything in my typings is 100% my biased opinion and the only proof is my own success. While I am not a professional, I have been trading for a long time and I fully understand the risks entailed. Investing can be fun and life changing for the better; it can also be devastating and financially crushing. Be safe, research, and if you are unsure seek professional advice. I Christopher J. Roes, carry no liability for any losses incurred after reading this should YOU choose to implement the strategy offered above.
Comments