Why would anyone risk their retirement money and subject it to loss? Seriously? It’s retirement money. Obviously, if it is not there when it is time to retire, then you can’t retire. Simple math. And if you are forced into retirement at that time, what then? Up the creek I guess. Every financial advisor I know will tell you to put your retirement money in the market. After all, the Dow is going to 30,000 or 40,000. Or so they have convinced themselves. Indeed, the market may go to 30,000 (being at 24,000 now). But what if on its journey it takes a sudden dip to 15,000 before going back up to to 24,000 or even 30,000?
Simple math illustration: if you have 100,000 in the market and the market loses 30% (100,000 minus 30,000 = 70,000), you will have to have a 43% increase to bring your now 70,000 back up to 100,00 or even from where you started. We call that catch-up baseball. And should your retirement be scheduled during that dip, retirement may not be possible.
The good news: there are safe money alternatives that let you participate in the upswing of the market but NOT in the down turn (which is the inevitable pattern). These alternatives are only through A rated companies that guarantee no risk of loss of your capital. It is not too good to be true; it is a tool that the rich have used for years! But you don’t have to be “rich” to use the same tools. You just have to know about them. Please contact me to discuss them. You will be surprised that your 401k sitting at your old employer, or your IRA or Roth IRA do not have to be subject to loss. Let’s talk.