Guess what? The party is over. Photo of the morning after a wild frat party, and you have the picture of the economic situation today, sadly. And yes, we all have a financial hangover.
And what do you do about a hangover? You wake up, not just the smell of coffee, but one might be tempted to drink the whole pot. So grab a cup and learn four things guaranteed to cure the financially worse hangover.
1st Accept the fact: You have done well
Accept the fact the party went and abused to the stocks of fats and mutual funds. It was a great party while it lasted, and then BANG. The parents returned and covered the reason why you broke with pink champagne deficient. Do not feel guilty. It was the most natural thing in the world, the majority of the equity markets to participate in previous years. And who could be avoided with all the hype and brokers barking their wares latest sensational? But today is a new day dawned and the stock market of the past no longer is. Now it is time to normal from the brush and the cleaning and preparation for the “new.
2nd Prepare for the new normal
What is the new normal? The new normal means under our watch, instead of the Shop ’til you drop day (sorry Carrie Bradshaw). The new normal means, we must now put in as much as 80 percent in the period, according to Smart Money magazine. The new normal means, we would withdraw our money, thank you very much (Elvis said with an accent, since I am from Memphis), rather than a broker or consultant with the thumb, they can speculate, and play with him and to try to beat the market. developed the “my actions are better than your stock done,” the water cooler boasts disappeared. Instead of actively manage our money trying to beat the market with a market timing, stock selection and chase past performance, why not try to beat the bank?
3rd Beat the Bank
In the world of financial security, you have CDs, fixed annuities and savings bonds. In a fixed annuity, both your principal and interest accounts are protected from market losses. People come to my office with their brokerage accounts and variable annuity statements that reveal losses big market, but I’ve never known anyone to lose a penny in a fixed annuity. Did you know? Let us try again just the bank with a fixed pension.
Your current bank CD rate perhaps 1% or 2%? I have a guaranteed five-year fixed annuity that paid 3.65%, and you have to pay any taxes on the interest each year than you would on a CD. With a fixed annuity, you will receive an increase in your interest, without incurring increased risk. My pension will also get a free return of 10%, you can spend each year without penalty, and you can have any value at any time if you get to go to a nursing home.
With a fixed index annuity (rather than a fixed annuity that gives you a flat rate of interest for several years, as in the example above), you can expect a higher rate of return of 5% – 8% over the term of the policy. A fixed annuity index is coupled to an market index like the S & P 500. They are therefore able to take the advantage of the market on its head, without the disadvantages. Instead of buying high and selling low, you will benefit when the market goes up and down, and something that I predict the market. It is still up and down and still go, you win with a solid pension, while the index returns lost bank.
4th Go income
I have a confession to make. Yes, I can predict the stock market is rising, and now, but I can not tell you when. You see, my crystal ball broke years ago and I do not know the future. Yes, I know that your financial advisor is a crystal ball is better than I have, or a special link to a fortune teller, that the fact that market-timing warrants in your portfolio. If you (and hope that you are thinking of doing, because that is what you pay for it), I suggest you stay where you are and we hope for the best. In my practice, instead of wishing and hoping, we offer insurance future.
Future insurance coverage for my clients a guaranteed lifetime income for life as a withdrawal benefit (GLWBs). GLWBs not only guarantee a minimum income for life, but also guarantee a minimum level of income growth. In other words you can never have the money – ever run!
How would you like to offset extra income every month on the stock market losses, loss of pensions, benefits, 401k or games? $ 1,000? $ 1,500? $ 2,000? They tell me that the number and I’ll show you to the penny what it takes to get there. And with my income, you can turn income and at your disposal, so that your pension is growing with interest. You can also increase your salary to index payments to income over time and to choose the cost of the planet.
Thus, instead of the planned series of fantasy, speculation and wishful thinking of the time of your last money, why not go for a guaranteed salary for the rest of your life in a fixed index annuity? Combined with a better return than the bank without market risk, it is safe, even worse, the financial hangover cure.
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