Market VolatilityPrint This Page
The quality of your life will often reflect the quality of the questions you ask yourself. The following are challenging but necessary questions?
- If we have another major market correction, how much could you potentially lose in your current portfolio?
- Is it REALLY true that in order to have the quality of life I desire that I must gamble a large percentage of my net worth in the stock market?
- What portion of my assets are guaranteed not to decrease in value and more importantly, guaranteed to provide an income that I can't outlive?
When asking investors who are considered the “smart money” their number one rule in investing, it's common to hear “don’t lose money.” That sounds wonderful but for a generation that has experienced two 40% drops in the past 10 years, is there really a practical way to protect capital and receive a decent return in the modern financial world?
Wall Street has conditioned the “retail” customer to believe that we must be willing to “buy and hope.” That drastic market declines are just part of being invested. And that over the long haul, it will all balance out. How has that worked out over the last 13 years??
The reality is that savers and seniors have been forced into speculation because the government continues to push a “zero interest rate policy” and in this environment, the saver can no longer get the income they need for a safe retirement from conservative investments such as CD’s and/or bonds.