Why The “Latest Fads” Don’t Matter In Retirement |
Don’t Get Wet When The Bubble Pops!Every fad, is eventually replaced with a new craze. Same with fashion! Do teenagers today dress the way you did when you were a teenager? Not really. Why? Because it was a FAD and fads GO OUT OF STYLE. You’re probably wondering what fads and clothing style have to do with your retirement. Honestly, they have nothing to do with your retirement. BUT, what DOES matter to your retirement is market “fads”. In recent market history we have gone through… Two VERY important “FADS,” otherwise known as BUBBLES. Let me tell you… metaphorical bubbles act the same way as soap bubbles. Just like soap bubbles, market bubbles will always pop. Let’s take a look: For the past 12 or so years, the stock market has basically been flat with several highs and lows in between. It’s like going on vacation and having great weather for days: you’re having brunch |
on the beach, wearing shorts, getting some sun, and you feel great. Then, you wake up one day to an awful thunderstorm and you are forced to stay in your hotel room until the bad weather subsides. The difference is, if you walk outside in the rain, you might get a little wet. No big deal. But, if you find yourself in the middle of a bubble in the market, in my opinion, you will NOT want to stick around for it to pop. If you were floating in the technology bubble and/or housing bubble, you will understand what I am talking about… No one really knew precisely why everyone was raving about these stocks, but that was just it: everyone was raving about it, so it was obviously a smart idea to follow along, right? Not so fast. It was the latest fad. We didn’t know much about these companies or if they were really worth putting all of this money into. There was A LOT of money going into these stocks! This sudden explosion of technology was so new to everyone, and we didn’t even know if the people running these companies really knew what they were doing! There wasn’t anyone or anything to mimic or learn from in this new business because this whole technology thing was very foreign and uncharted territory. |
It was just as new to the company owners as it was to everyone else, and, like a lot of things, developments such as this sometimes have to go through a trial and error process until they get it right. But, since everyone was investing in these stocks and it was the latest fad, we neglected the “error” part in that equation by not taking into account the probability of the fad going out of style. The problem was… if they floated in the bubble too long, people lost money when the fad went out of style and the bubble popped… Some people lost a lot of money. You would think that we would learn from this mistake. Perhaps we would finally start living by the notion that… “History always repeats itself” But, we didn’t and we STILL haven’t. After the tech bubble popped, a new fad was in style, and this fad was even bigger than the last: the housing bubble. We wanted to believe that this time was different and there was no way that this bubble will pop. Why wouldn’t housing continue to skyrocket? Why, because it’s a BUBBLE and just like any bubble, IT WILL POP! And, guess what… It did! This wasn’t just any normal bubble popping, though. Not only did everyday people invest in housing, but banks, mortgage companies, and brokers didn’t want to be left out, so they jumped in on it too. Just like the tech bubble, everyone was making money as it grew. And lots of it. They were making fortunes. They thought they had it right this time around and there was no coming down from it. But, just like with all bubbles that keep growing bigger and bigger, it eventually popped and got everybody wet. I know that those bubbles are history, but they are very important to understand, partly because of the fact that when we were actually in these bubbles, most people didn’t even know it! They didn’t see it until it popped and it was TOO LATE to recoup their investment. All this begs the question… Are we in a bubble right now? When you’re in a bubble, it’s hard to see it. It’s not until it pops that people say, “how did I not see that coming?” and by then it might be too late. That is the problem with bubbles. People are always looking for a way to make a lot of money fast, and get themselves trapped inside. Another word for this is greed. People seem to believe that since others are making money off of this, that, or the other thing, they can too. That may be true temporarily. But, what goes up must come down. You may gain fortunes, but you also may lose fortunes. People tend to forget that when they are floating in a bubble away from reality, that they will be dropped back down to the real world when it pops. While that isn’t a good situation for anybody, it can particularly be a bad situation for retirees. Retirees may not have the time or money to recover from that because they are no longer receiving a set paycheck from their job. The Question is: Is the potential to gain a fortune worth the potential to lose a fortune? Why does that concern me? Because we may be in a bubble as we speak and have absolutely no idea. That might not matter for the people receiving a guaranteed cash flow from their job and have time to recover, but, as a retiree, the fact of the matter is, that that probably isn’t you anymore. You no longer have that reliable paycheck and probably can’t recover unless you are darned lucky. Most can’t. BUT, it can be! You can still have the option to receive that fixed GUARANTEED* monthly income for the rest of your life, just like you did when you were working. You have a few different options of receiving it:
If you are soon retiring or are already retired, I believe that it is in your best interest to lock in a guaranteed* monthly income with an annuity best suited to your needs BEFORE you consider putting money into risky investments.The main reason is, if you are guaranteed* to receive enough money to meet your living expenses for the rest of your life, then your lifestyle will not be affected if you suffer the losses of money that you invest in risky investments if they don’t perform well. Obviously you don’t want to lose money, but, IF you do, you won’t have to worry about changing your lifestyle because you will have locked in a contractually guaranteed* monthly cash flow from your annuities that can never be impacted by the market! In fact, with a fixed index annuity, the only way it can be impacted by the market is when the market performs well, in which case you can benefit from some of those gains, making your income even higher. If the market was to fall your income will stay the same, and you will not lose anything! This is a win-win situation… literally. The choice is yours, Call us today at 1-954-781-2220 or fill out this short survey so that you can set up an appointment with one of our top licensed agents who specialize in retirement income planning and learn potential ways to lock in a guaranteed* monthly cash flow in YOUR retirement! In addition, you will receive a copy of the publication “Is An Annuity Right For You” We will help guide you in your retirement and find the best contractual annuity guarantees** that are most suitable for YOUR unique financial situation. *Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Call Statewide Retirement Planning Co. at (954) 781-2220 or Fill out the short survey HERE. That will put you in touch with a licensed advisor who specializes in retirement income planning. *Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Devoted To Helping You Live A Happier And More Financially Secure Retirement |
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