There are some things you need to know to make sure that you are investing your money safely. The first thing is that the purse is not a very safe place to put all your eggs in one basket. You need to really diversify your portfolio to make sure you keep pace with inflation.
Have you heard of institutions or advisers who invest your money and control your finances like Bernie Madoff or The Stanford Financial Group. A lot of people have just opened accounts and let these types of financial organizations invest all of their money. The problem is, if these guys made money or lost money, they still got high commissions on your money. They also had full control over your money so these institutions or individuals carried out illegal Ponzi schemes using your money and as long as they kept getting new money from investors it seemed like they were investing your money the right way. They guaranteed rates of return of 10% and more.
The problem I have with not being in control of your own finances is that you never know what’s going on with your money. Investors became creditors of these institutions and many never got back the money they had invested.
As an investment advisor, I always make sure my clients can log in, manage their own money, and check the performance of their investments.
The stock market is very unpredictable and experiencing steep declines, as of this writing, and my goal is not to suffer losses when investing your money and to be as tax efficient as possible. I have invested millions of dollars and I make sure that losses are not part of my philosophy. You should still invest in a 401k plan if it is offered at your job, but diversify your investments in your 401k plan and be sure to allocate some in the money market area to limit exposure.
I use annuities and insurance as a way to invest large sums of money while achieving excellent returns ranging from 7% and above without the risk of losing capital even in a bear market. If you invest strictly in a fixed annuity, you will not keep pace with inflation. If you invest in a variable annuity, you will be subject to stock market risk which could result in significant losses. I am an expert in indexed annuities and have sold millions of dollars of them and they continue to grow due to safety of principal and also having the ability to keep pace with inflation and carry over. income tax is important.
When you invest large sums in indexed annuities, you also have low management fees unlike variable annuities which, like the stock market, need someone to manage the funds, which adds to the fees. Indexed products are compared to a benchmark index, such as the S&P 500 or another index and therefore lower operating costs. Buying an indexed annuity comes with serious compliance to make sure this type of investment is right for you. First of all, I need to make sure that since your money is tied up for a certain period of time, this investment is suitable for the investor. The company will also make sure that this investment is suitable for the buyer, and then the investor will have a free review period to ensure that the investment is suitable. Most of the time, an annuity isn’t right for a person in their late 70s or 80s, but compliance will determine this depending on the situation. If a client is over 80, we then look at indexed life insurance policies to see if we can fix a problem for them. I do a good job of due diligence to make sure my clients match the product that solves their money issues.