I Asked a Private Banker How a Broke Guy Like Me Can Retire Happy. I Was Delighted.

Simple does it

It has been a long while since we met.

Tim, a guy I met and knew for 15 years, has worked in private banking since his graduation. He loved the business of money. So, he jumped in head-first.

We agreed to meet this year during Chinese New Year.

And I am glad we did.

He was one of those I wanted to dump my retirement questions on. He is in the money-making-money business, and retirement is one of his clients’ pet topics.

Tim may have answers to my retirement questions.

A Long Awaited Catch-Up

It was a meeting that almost died.

Tim told me on the morning of our fateful meeting that he has work to handle, and we might have to postpone. 7 minutes later, I received the following text.

“Hey man, f**k that. Let’s meet for coffee.”

Hahaha! I love his response.

He is [still] so direct.

Tim walked into the café I was in with rivers of sweat on his cheeks. The weather was hot at 34 degrees celsius, and his body was working hard to keep him cool.

“Tim, here.”

I waved. I smiled.

He did the same.

“Wow, how long has it been? You look ageless, man. Let’s grab a drink. Is your retirement plan still on track?”

Haha.

This arseh0le cuts straight to the bone.

I am in for a great time.

The Unavoidable Pet Topic

The drinks came, and I rushed to take a sip. I was feeling hot and humid, too.

Tim finished half a cup in his first gulp.

I started talking first.

“I have questions for you. I will start with this one. Can you tell me whether anyone can retire with money without any knowledge of finance or dabble in any form of market trading?”

Tim did not hesitate to reply.

“Even a person with a low IQ can retire happy. I have seen it so many times.”

I recognize a punchline when I see one. Tim’s response delighted me.

“Great! By low IQ, do you mean low IQ or a person with zero knowledge in the mechanisms of modern-day finance?”

He put his palm up while drinking his coffee.

It was a gesture telling me to wait.

Tim responded before the cup hit the table.

“I mean low-IQ in general.”

By now, I was beyond delighted. I have been searching for simple ways to retire faster without money woes during my old age.

And maybe… Tim has that answer.

This Is Tim’s Response

I was frank that day.

I asked this question.

“Tell me. Treat me like a real dumb. A dumb ass with very little to spend. What should I do to grow my retirement money?”

Tim poked his fingers into the weakness of my thinking and tore it apart.

“Do you mean very little to spend? Or very little to lose?”

I like his questions.

It shows that he is battle-tested.

“Make it both. Tell me.”

Tim ordered himself another cup of iced coffee before continuing our conversation. The waiter asked if I wanted one. I nodded.

“If you have very little to spend, then don’t. By little, I mean $1,000 — $3,000 in your retirement account. Just don’t. You never know when this account becomes your emergency money.”

Tim noticed my bewildered face.

“Simple, you know. If at 40, you only have $3,000 in your retirement account, it means your rainy-day fund is not solid. So, don’t risk your money. Do nothing. Earn more income first.”

He made perfect sense.

“What about having very little to lose?”

I was intrigued. What would Tim tell me?

“Find and play games you cannot lose. In finance, losses and rewards are mirror images of each other. If your investment yields 7% returns, it can also mean 7% losses. Avoid that. You need an edge.”

Oh, that sounds fresh.

I like the idea of having an edge. It made complete sense. So, I probed further.

This is his reply.

“You are in the IT business? Then you will understand how these IT companies are doing when you read their financials. You can tell immediately whether the media is spinning to you. Start there.”

Tim paused for a moment to sip his drink.

And he continued.

“This is where you find your competitive edge and 10% returns. You mitigate the risks of an investment with industry knowledge. You know why company A is sh!t before the smartest analysts say they are.”

Simple does it.

I like what he says.

“You will know what companies to put your money in and which ones you will avoid forever. You don’t need a lot of brainpower for this. All you do is put money into what you know. That is it.”

This is what Tim said before we parted ways.

“That is why I only invest in banks. This is the only sector I know with confidence. I don’t touch the rest. I have no edge.”

Utter brilliance.

The Close

It was one happy get-together.

Tim is still Tim. If he changes his persona — I will find a new name for him.

I love his no-nonsense approach towards money, investing, and retirement. To him, taking risks is about putting money into areas with zero understanding.

I concur.

We are left with one [simple] question to close the loop.

“Tim, what to do when we don’t have enough money?”

He gave me a chuckle.

“Don’t bet on the markets. You will lose your shirt. Go work. You will have a peace of mind. AND. You reduce your mental health and medical costs.”

What a smart guy.

Like this story? Hit Subscribe!

Oh, oh, you can buy me a cup of black too! Thank you!