re: Is the market a must?

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Adding liquidity to your financial profile is going to be something you will eventually be thankful to have.

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I agree I’ll need liquidity at some point, but right now feels like it should be a growth phase. Liquidity doesn’t seem like a factor until a few years before I stop.

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You are certainly taking on more risk than you realize right now.

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How do you figure this? I have low overhead and no personal or business debt. Have we come full circle to the point that not investing in fluctuating markets is risky?

I understand why an employee should have retirement accounts, especially where there is an employer matching a percent of contributuons. I fail to see this as a one-size-fits-all solution for someone like me. I keep large amounts of cash ready so that I can jump into things as they come along. My current business required $120k to get started. Had I had $100k in the market and had to sell to get the cash, I’m stuck hoping my $100k is still $100k at the moment I need it.

At the end of this year, I have a plan for an expansion that will take double my original start up amount. There’s no way I’m putting any of that money in the market this year while I’m trying to accumulate it. After that is done, I will accumulate more, but there will always likely be another plan or if there is no set plan, at least the desire to have a large enough amount set aside to be able to jump into something if I want to.

I’m trying to imagine a scenario where I’d want to just set money over to the side and not touch it until I’m 70+. I guess it would be if I had more cash on hand than any conceivable opportunity would require.

The advice seems like reading a pamphlet. I was curious if anyone could make a persuasive argument for the markets based on my specific situation.

And I am not arguing, I am asking clarifying questions and providing what I think are relevant details.


Edit: Upon re-reading, maybe I am arguing. I will give what’s been said here some thought.

Sorry to go off traack on you. What type of commerical construction do you do with a 30 day window for completion?

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Liquidity doesn’t seem like a factor until a few years before I stop.

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If you plan to get into the market this late in the game, you probably shouldn’t bother. Much greater risk short term.

I do not have a large market position.

I flipped houses for a while and do well with cash flow from rental properties.

My real estate has done much better over time than the market.

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We should talk. It might make sense to work together

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I’m not quite there yet. I do a lot of remodels for one particular client that also does a lot of new construction. They have started throwing me new construction to look at but, based on our conversations, their construction dept is a clown show. Sometimes that can work out well if you have your stuff together and get in with the right person. I’ll see if someone has all their data installs on lockdown.

Are you guys based in VA?

First off, bear in mind that most of your company's growth has happened during a time with very low interest rates to stimulate the economy. A construction business is very well placed to take advantage of that. You got into this at just the right time, and in Nashville to boot.

But the pendulum swings both ways, and one fine day your sales pipeline will dry up. This is where investing in public securities can help.

Notice I didn't say "the market", because there isn't just one. You can invest in bonds of varying maturities, for example. Or Europe. Or Asia. Government bonds of whatever government you like. Or whatever. Investing in public markets gives you the ability to set aside wealth and weather a storm if your order book suddenly dries up.