Savvy individuals and investors purchased $17 B of one type of product this year. That represents almost 7% increase over last year. The investors did it to control risk, earn a decent rate of return and in many cases to guarantee lifetime income or at least guarantee income for a fixed period of time. How does that sound to you? How about Zero market risk! Is that important to you?
These products are offered by some of the strongest financial companies in the world. The companies I recommend did not lose money in 2001, 2008 or 2009. They did not require any government bailout! They actually made money in 2008-9. They are well positioned to weather the next market downturn which we all know will happen! We just can not say when.
These products work with both qualified and non qualified money. They work in ROTH and Traditional IRA accounts, SIMPLE Plans, SEP Plans or even within ROTH or Traditional 401K Plans that I run for my clients. They can be used in Trusts, can fund charitable contributions or work within estate plans.
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Alex,
This is a great question!!
Please understand that it is a very good idea to think about your savings and assets as pools of money with different roles to play in your future.
I do not manage a clients risk money! I like being able to sleep well at night because I never put a clients asset that I help manage at risk! Mutual Funds, Stocks, Bonds, and ETFs all include MARKET RISK! Please note that I have some Stocks and funds myself but much of my assets are protected from MARKET RISK. Everyone should have at least some of their assets in products that DO offer protection from MARKET RISK!
The question is how much of your assets should you protect from MARKET RISK and put into SAFE Money products. The answer startw with a simple tool everyone should know and use. Its called the "RULE of 100" It states simply that if you subtact your current age from 100 the remainder in percentage terms is the largest % of your assets that should be exposed to MARKET RISK!
For a 55 year old they should have no more than 45% of their assets exposed to MARKET RISK.. This is a starting point if you are risk adverse you should have less risk,. Obviously as you age or approach retirement you should have less risk in your asset base. The size of your total portfolio is also an issue. The health of the economy( deficit, gov spending, tax revenue, true unemployment) is an issue as well. Remember that the typical broker mantra of diversification has been a failure if you take a look at the past 10-20 years. That's why they refer to 2000-2009 as a investors lost decade.
An initial no charge consultation could help you arrive at an appropriate resource allocation strategy. If appropriate I would bew able to offer some very interesting Safe Money products for part of your portfolio
Please feel free to call or email me to discuss your specifics in more detail financial-services@live.com or vist our website
http://financcial-service6.wix.com/polarisfinancial
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