One Strategy to Never Lose Money in the Stock Market Again

By Derick Van Ness

If I told you that you never had to lose money in the stock market again, would you believe me? And no, I don’t just mean minimizing losses or even recouping losses. I mean that you can reduce losses down to zero, zilch, nada. 

But to understand how that’s possible, it’s first necessary to understand the stock market, and why it’s nearly impossible to predict what will happen. And if I’ve done my job well enough, by the time we’re done you’ll know how to grow your money without fear of losing it again. 

Understanding the Market

We’ve got to start with the obvious—acknowledging that the stock market is a volatile place. In fact, at the moment of writing this, the stock market is down 6% for the whole day. In the past few weeks, that rate is more like 20-25% for many. 

In more concrete terms, that means that people who have been saving diligently for decades have seen a quarter of their wealth vanish into thin air. And I believe the trend will only increase. 

On the flip side, the market was flourishing in 2019, rising 22% over the course of the year. This, of course, is tempered by the fact that 2018 actually lost 6.5%—a fact overshadowed by the generally positive news that year. 

The bottom line? Well, these numbers just serve to show that the market will do what the market will do, and it’s difficult to predict. Pretending otherwise is a fool’s errand. After all, even the smartest guys in the world didn’t know that an illness would sweep through the world, prompting gatherings and businesses to shut down globally. 

So, Answer Me Honestly…Do you have the time and expertise to be able to navigate the Stock Market on a daily basis? And even if you do, what do you think the odds are that you can beat the Harvard and Yale grads who have a billion dollars’ worth of software helping them win?

For most people, that’s an absolute losing game with insurmountable odds. 

Image: Michael Longmire uploaded to Unsplash

What CAN You Do?

Do you stay trapped by your Wall Street overlords for the rest of your life and hope it works out? Or do you exit the losing game? Well, fortunately for you, there is an alternative. 

The thing is, most people don’t realize there’s an alternative. They’ve been taught to believe that, outside of real estate, the stock market is the only place that they have a chance to grow your money.

The Alternative

So, if you’re NOT a professional investor, how can you set yourself up to grow your money, but NEVER have to take a loss again?

Step One: You need to look outside of Wall Street. And no, this doesn’t mean you have to invest in your brother in law’s brewery or your aunt’s beauty salon. Nor am I talking about hoarding gold and silver for the apocalypse. In fact, precious metals are just as unpredictable as the stock market, so I suggest treading lightly in that arena. 

What I’m talking about is a place to store your cash that’s as solid as bedrock. Not to mention, it offers guaranteed growth faster than your typical savings account, without risk of loss. And you’ll probably be surprised at the suggestion. 

So here are a few things to keep in mind: this is the same place that the biggest banks in the country store their cash. It’s where the wealthiest Americans keep their money so they don’t have to be concerned about markets crashing. 

Think about it…when the markets crash, the richest people barely break a sweat. That’s because very little of their wealth is tied up in stocks. They may have some, but it’s not their fortune, it’s their fun money. 

Image: Micheile Henderson uploaded to Unsplash

How It Works

When you put money into this type of account, it has a “floor,” or a guaranteed growth of 4% MINIMUM. So when everyone else is losing money, you’re still making money. 

On top of the guaranteed minimum, the account pays dividends. In the current market, that’s worth about 2% on top of the floor. And while the dividends aren’t guaranteed, it’s worth noting that historically the top companies have paid them every year for the past 100+ years. 

I’d say those are pretty good odds. 

Even better, the growth is either tax deferred like an IRA, or can be utilized tax-free if done properly. That’s a massive opportunity. 

But even without the tax advantages, the stock market claims a 6% return on average. But if you could get that same 6% without risks, why wouldn’t you?

Image: Giorgio Trovato uploaded to Unsplash

What It Is

I’m talking about properly structured Whole Life Insurance with a participating Mutual Company. It’s a mouthful, but here’s what I mean…

There’s a best way, and a not-so-best way to utilize insurance to grow your money. The best way is by using a company that pays dividends and setting the policy up in such a way that fees are minimized and cash growth is maximized. 

I hate to admit it, but too many insurance agents maximize their commissions and minimize your upside. So, yeah, some people have unfortunately had bad experiences. It happens in most industries but occurs often in the insurance industry because most agents don’t even understand whole life insurance.

Tired of Losing Money?

Well, you’re not alone. It’s frustrating to grow your money, only to have it disappear by half every ten years or so. Especially when it takes five or more years just to recoup what was lost. 

Now, it’s your chance to do something different. And yeah, you read that right. In most of the recent cases, it’s taken five years or longer to recover. Don’t believe me? Check this out:

• In January of 2000, the Dow Jones Industrial Average hit 11,497 before the Dot Com bubble burst and the market declined
• It wasn’t until September, 2006 that the market reached the same heights (before dropping again)
• In November, 2011, it finally reached the same 11,497 again, and then finally eclipsing it.

The verdict? Nearly twelve years, zero gains. 

What’s worse is that people who had their money in the market were paying fees to their advisors that whole time. Even a 1.5% fee would mean losses of more than 15% over those years. 

But we’ll leave fees out of it for now. Compare, instead, the above situation to a boring old 5% gain in cash value life insurance. Over those 11+ years, that’s nearly a 70% gain in value. So, 70% gains, or zero gains—which would you prefer? 

Image: Joshua Hoehne uploaded to Unsplash

The Best Part

And what’s better than the gains? The fact that, if your money was in the right whole life insurance products, you wouldn’t have to worry about the DJI or the S&P, because your gains are guaranteed by the company and are unrelated to the markets. 

(It’s important to note, however, that if you had universal life, it would be a completely different scenario, because returns are tied to the stock market. If you’re interested in this strategy, don’t use Universal Life.)

The Bottom Line

You now know how to put your money in a place where it will always go up, so you don’t have to lose money in the stock market again. It’s that simple. 

So, if you’re tired of losing, time and time again, and riding the unknown roller coaster into the future, then PLEASE use a licensed insurance expert who works with mutual insurance companies. 

Put your money in a place where it goes up every year, and you can enjoy your life no matter what the market does. Use that time to focus on yourself, and what you’re best at with your business or career. Just wait—you’ll see how your stress lifts, and opportunities open up to you. 

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Thanks for spending your time with me, and I’ll see you for the next article.