Will conventional wisdom work for you? The odds are about 29% that it will. Standard conventional wisdom taught by most financial advisors is diversifying your portfolio. As you are younger you take more risk with investing. As you grow older you move more into safe investing.
Unfortunately the odds of this strategy succeeding in building you a large nest egg is about 29%. (I think the actual success rate is probably even lower because the authors don’t take into account the fact that most people sell during low periods due to the emotional factors of losing money.)
Take a few moments and read this article: The odds for a retirement nest egg, recalculated.
The authors used 80 years of marekt data and ran thousands of simulations. Basically the authors point out that the strategy doesn’t work due to market volatility. If you would like to learn more about how to eliminate market risk contact us here for a free video.
There are hundreds of equity index products on the market today. It is important to work with experts that can recommend the right type of account for you individual financial needs. Every situation is different. A 40 year old will have a different strategy than a 60 year old and so on. In addition some accounts will dramatically outperform others.
Dateline NBC recently aired a program on how Senior Citizens can get taken advantage of. You can read more about this story here.
It is safe to say that if the individuals in the show had watched our 15 minute video on equity index products they would be in a much better position.
If you feel you may be in the wrong account feel free to call us at 480-970-5663 and we can give you some feedback.
Is life harder for the middle class? Recent studies show 8 out of 10 Americans say yes. Here is the just released complete study: http://pewsocialtrends.org/pubs/706/middle-class-poll
How do you make it easier? Warren Buffet said “Never Lose Money. Ever.” It is a myth that you have to take risk to grow your retirement funds.