What Happens to Bonds When Interest Rates Rise?

This  weekend an interesting  article appeard in the  Columbus Dispatch in the business  section. It was  titled "Bond-Lovers still buying despite risk, stock highs." In a recent month investors put $32 Billion into Bond  Mutual Funds.  This becomes a potential issue when interest rates are at all time record lows.  Do  you  think that interest rates one, three  or five years from now will be lower  or higher than  they  are  today?  Can they  get much lower?  Can they get much higher?  Is there  upside interest rate risk?  What happens to  existing values when  rates are rising?  Simple economics answers that question.   Existing prices fall when interest rate rise. The article  further states "With Bond prices rising and interest yields at historic lows the risk has picked up significantly"  The article is  worth  reading!

When customers wish to minimize their risks  Safe Money products might be a logical part of a financial portfolio.  Asset diversification is always very important.

Did you know that there are products that can guarantee lifetime income without any market risk?

I'm not telling anyone  to  buy  something or  to  sell  anything.  I'm just sharing  a nice article worth  reading.

When Can I Retire??

While  reviewing some  financial industry  publications  today I  came across  something somewhat  frightening. It was an article quoting a study done by a group called My New Financial Advisor (MNFA). The purpose of  the  study  was to look at Baby Boomers facing retirement and tried to  determine what  age they would  reach before they  are able  to Retire. First let me say that the study was relatively modest in  size but the  findings are still Disturbing and Frightening.  I might  say this is rather fitting on Halloween  night!!

The survey was conducted  by collecting  data on 1600 Baby Boomers. They concluded that many Boomers due to the following six factors; a Loss of Income,  Insufficent Savings,  Low Rates of Return on Their Retirement and Other Financial Assets,  Higher Than Expected Expenses,  High Taxes,  and A Low Rate of Growth In Personal Income will have to  postpone their retirement till their mid 70's. Is  that  frightening enough  for you?   I don't know about you but I don't want to HAVE TO Work until I  am in my mid 70's.  Now, I'm not saying working until age 70-76 is a bad thing!  In fact, for  many people  thats a good  thing.  I  am  saying that I would  hope that if you are still working until you are almost 80 years of age that it is because  YOU WANT TO,  NOT BECAUSE YOU HAVE TO!!

START TODAY!
Squeeze your  expense budget, use the money saved to  increase retirement  savings.  Look for  SAFE Money Financial alternatives that produce a reasonable rate of  return.  Guarantees of up to 6%  in the growth of Income Account Value, when used for Lifetime Income, are available today.  This can  be done without market risk today!  The "Without Market  Risk" is a big deal since  retirees or near  retirees cannot afford the market lossses most have seen in the past 10-12 years. Getting  Back to Even is not good  enough.  Where do you currently have your Safe Money?

I believe it was Warren Buffet who said  there are two rules in financial management.
Rule 1 Don't Lose Money!
Rule 2 NEVER FORGET RULE 1!

 If  you  don't believe  we have significant risk today. What  about  Europe?  What about our out of control Federal  deficit? Where are we going to  get the money to pay for it?  Expect increased Taxes! Ever hear  of  the  terms The Fiscal Cliff, or Double Dip Recession. What about  the increasing cost of everything you need to buy in the  Consumer Price Index (Inflation Risk)?

Polaris Financial Services
614-264-3864

Current market conditions review

We just finished the worst Jan ever recorder in the Dow and the S&P 500 indexes. The Dow was down over 8.8% and the S&P was down over 8.5%. Banks are still being closed by the FDIC. Six new bank closures in January 2009. The only good news is that we have not fallen below the market lows set in November 2008. That trend has convinced many analysts the worst may be over. Most Economists are still predicting a weak economy throughout 2009.

With this continued market weakness is now the right time for you to be looking for Safer Money Financial Alternatives for your assets. My average new client from early 2008 will see a 6-12% increase in their Income Account Value on their 12 month aniversary. This is not a home run by any means but consider what has happened top those invested in the market. Are you ready to join the better than 75% of the high net worth individuals who a recent study found are ready to change their financial advisors. If you are interested in protecting your assets from market downside risk while participating in upside potential contact us. We can help!

The Columbus Dispatch: How Low Can Stocks Go? Article

Thursday October 9th Lead article in the Columbus dispatch was an article titled "How Low Can They Go?" The bad news is that they could go a lot lower before they correct and start to recover. Recoveries usually take longer than market collapses. The average Bear Market has lasted 16 months and an average decline of 31%. The great depression recovery took over ten years and the tech bubble / Sept 11 drop recovery took over 4 years to recover. We are now back close to that level again.

The good news is if you are interested we can eliminate your downside market risk! We can do it while protecting you principal and giving you upside market potential whenever the market recovers! Depending on your state of residence, your age and financial situation we can guarantee no loss due to market risk or as much as 7.2% per year increase in Income Account Value.

How do you win? One great way is to protect yourself from the downside risk. Make sure you participate in the upside market recovery. WE CAN HELP YOU DO THAT!!! We CAN DO IT SAFELY!! We specialize in No Market Risk Financial strategies! Still accepting some new clients.

How can we help you meet your goals?

www.columbusfinancialplanningpros.com
polarisfinacialservices@gmail.com