This amazing loss underscores that the stock market is not a sure thing. It is a risky investment that has proven to cost millions of people trillions of dollars. Why do they put their money in the stock market? The answer is, “Because they don’t realize the risk.” Do you think everyone who lost money yesterday did it willingly? I don’t. I think it is because they don’t feel confident or understand the safer alternatives.
What about fixed indexed annuities with secondary guarantees of growth for retirement income guaranteed at 6% or 7%? What about fixed UL with indexed crediting strategies on the cash accumulation values that are insured with a guarantee that the return cannot be less than ZERO if the market goes down, but will return up to 12%, or 15% or more if the market goes up?
What about fees, commissions, and expenses?
The stock market has been flat for over a decade. The disclosed and undisclosed expenses of the average 401(k) and/or mutual fund is up to 2%-4% per year, or more, which is 20% to 40% or more of the total value of the account over 10 years, win or lose. Do you think investors REALLY understand this? Do you think that if peopleREALLY understood this, they would put ALL their money in these vehicles?
Sure, the market can go up… but it can go down, too. Is it possible that if people actually knew the whole story, they would “insure the principal” on part of their safe dollars instead of exposing it all to the ravages of market risk, low interest rates, and taxes.
We believe you can accumulate wealth much more efficiently by elimination loses then by chasing returns. Pick up the phone & let us do the heavy lifting for you & examine your individual situation.