Many investors have little knowledge about their investments. They proceed much like I did when I first had access to a 401(k) program: by looking at the list of available mutual funds ranked by performance and making investment selections based on their age and risk tolerance. (We'll discuss more in a future article about how misleading the quoted average rates of return can be.)
"What's wrong with that," you may ask. "Isn't that what we're supposed to be doing?" Well, it is certainly what the financial industry wants you to be doing. They want access to your money, on a consistent basis, over a long period of time. And they want your trust. (Sounds a lot like the proverbial used car salesman or the tax man, doesn't it?) These money managers seem like they're on your side in the good times, but what about when the market isn't doing so well?
The same money managers whose financial statements all contain the warning that "past performance is not indicative of future results" will tell you "Don't worry about poor performance, the market always bounces back!" In fact, they'll often double-down and tell you, "Now's a great time to invest even more!" Whether or not that ends up being the case, one thing is certain—they will still take their management fees!
What if you don't have time for the market to make a comeback? It took more than five years for the market to break even after the Great Recession. Timing risk is just one of the many risks of investing.
There is another way. It involves saving money in a specially designed whole life insurance product with guaranteed growth. We can teach you how to utilize these policies to eradicate debt, replace income, save for retirement, and leave a legacy to future generations, all while reducing your exposure to the many risks of investing.
Contact us today to learn more!
Learn more at www.livingwealth.com.
The information presented here is solely for informational and educational purposes. Dan Watkins is not a registered financial adviser. He can be reached at: danwatkins@livingwealth.com.