Stop The Financial Insanity Now

June 6, 2012 - PRLog -- Investors are often encouraged to stay the course by their financial advisors.

Translation: “Risk enough of your money for long enough, and eventually you’ll get some reward.”

Shockingly, a lot of people accept the risk-and-wait-indefinitely premise and never stop to ask “how long is the ’long run’?” One of the most critical and yet least discussed factors about financial markets is the market cycle. The market cycle is the natural and unavoidable cycle of high and low periods in financial markets, and it might be a little longer than you think! Market history tells us that the market cycle takes 35 years to go full cycle. Considering the long-term secular bear market we are currently in, that means the current economic environment might not improve for another decade or longer. Did you know that in the past 10 years (from November 2, 2001 to November 4, 2011), the DJIA increased by 25.54%? That amounts to an annually compounded growth rate of 2.3% per year, not adjusting for inflation. Does that sound like a good investment?

Often times people looking at retirement get trapped into thinking that the stock market is their only alternative for investing, and they are totally unaware of the world of options between cash and stocks. We have also found that retirees simply do not want to risk their retirement funds, and they don’t have a decade or more to wait. Retirees need conservative, real solutions for protecting their assets, and they need this investment to provide income. We call that investing for growth.
Investing for growth is fundamentally different from staying the course. Investing for growth is a strategy designed to invest for immediate income while reducing risk to capitol, and it aims for a consistent 5-8% annual growth rate by using non-stock-market products.

If you are interested in learning more about investing for growth, or for a simple hassle-free complimentary analysis of your retirement strategy, please call now (888) 300-3133