Stock Market is up…Will YOU benefit?
The stock market hit an all time high on Wednesday, October 4th. When the market goes down, I hear other financial advisors tell their clients…”It’s only a PAPER LOSS.” Unless you take your money out now…you really haven’t lost any money!”
The same holds true with a market gain…unless you take your winnings out, you haven’t realized any gains or winnings! For many senior citizens and people nearing retirement, the thougt of another bull market is enticing, and greed starts to set in. People lost money in the market in 2000-2001, mainly because of GREED.
If you are nearing retirement, or are already in retirement, you generally don’t have as much time to recuperate from a market crash…especially with ALL of your retirement assets. Retirement planning needs to approached differently than accumulation planning
There is an old rule, called the RULE OF 100. Subtract your age from 100 and the result is the maximum % of money you should have in the market. Ask yourself, how long can my retirement income last if the market goes down! Then you have to understand that when the market is down, you may be spending PRINCIPLE. When you spend principle, you have less to recover and the market has to go up MUCH HIGHER for you to break even.
There are great retirement strategies that allow you to participate in market linked gains, but also enables you to protect your principle at the same time! With the experts prediciting a level market over the next few years, risk is something that should be re-evaluated.
My personal concern for my clients nearing or in retirement…..what if another plane hits a building in the US. It’s not a matter of “IF” terrorism will hit the US again, but “WHEN!” Don’t procrastinate. Today you have the most options. As time goes on, you risk losing those options and “CRISIS MANAGEMENT” doesn’t work when it’s too late!
For more information, you can call us toll free at 1-877-419-1040.