You’ve probably heard the Albert Einstein quote about the definition of insanity – doing the same thing over and over again and expecting different results. That same logic applies to investments and retirement planning. If we want to ensure that we’ll have enough money when our working years are over, we have to rethink past investment strategies. What worked in the 1980s, in a bull market, will not work for us now.
We are experiencing the longest bear market we have ever had – 13 years – and there is no end in sight. Therefore, we have to invest differently to get favorable results. In a bull market, a “buy and hold” strategy made sense. In a bear market, however, “buy and hold” doesn’t work. Instead, we need to seek investment products and savings vehicles that offer guarantees and take advantage of the market’s ebbs and flows.
Mutual funds are a good example. In a bull market, mutual funds can be advantageous. In a bear market, however, mutual funds have high expenses and transaction fees that minimize or eliminate any gains. It is better to use investment strategies and products that provide safety, protection and flexibility and where results are guaranteed.
Did you know, for example, that there are products in the market place now that will guarantee a return of 6% or more upon withdrawal? If this is the type of investment you’d like to have in your portfolio, contact Life Design Financial for a complimentary, no obligation review of your investment and retirement accounts. We can show you where you can save money, as well as opportunities you may be missing out on. Call us toll free at 877-693-7446 or visit our Contact Us page to set up an appointment.