by: Cory Carlton
When the market dipped on Black Friday, how did that make you feel?
Did you rush to your computer to check your retirement account balance? Many people did.
As of the writing of this article the market has rebounded.
Despite everything that has gone on in recent history one thing is for certain: the market has been great. People’s money has been growing and more and more people feel like they are closer to where they need to be to retire.
At least our clients feel that way.
As great as the market has been there is one certainty, we all know is coming. The market will go down at some point. The market goes up and it goes down. That’s what it does.
That does not mean that losing money is acceptable. In fact, that is why we do tactically managed money. Our clients’ investments are actively managed, and we do not allow our clients to ride the market roller coaster.
The basics of investing is buy low and sell high. Well, we’re all high right now. That sounds weird but you know what I mean. Even with the recent dip, we are in a good place.
So, why are so many people still invested in the market and not selling? That’s because we want our money to grow even more. That’s human nature. The challenge is knowing well to sell and avoid the market drop.
Here is the easiest way to do protect all the growth you have experienced. Consider transferring all the growth to a Secure Guaranteed Retirement Account [SGRA].
The SGRA will do three things for you…
- Guarantee that you will never lose a penny of your investment.
- Give you all the upside market potential without any risk.
- Give you a guaranteed income for life no matter what happens to the market.
These three functions can give you confidence in your retirement.
This way you protect what you have earned, keep your money growing and get guarantees to help you plan for a more stable retirement.
Let me break these functions down quickly…
Guarantee that you will never lose a penny of your investment. Pretty simple. No matter what happens to the market, you will never have less than what you put in.
No matter if you put $100,000 into an SGRA today and the market tanked tomorrow by 30 points, you would still have $100,000.
What’s better is that the money that you earn in the SGRAs, that gets protected too. Let’s say that your SGRA grows by 15% and you now have $115,000. That 15% gets locked in and protected so you can’t lose that either. Your money grows and is protected.
On to the second benefit: You get all the upside of the market without any of the risk. Meaning if the market grows by 20%, you get that growth. If the market drops 30%, you don’t participate. Your account just does not grow that year.
This is possible because your money is not invested in the market. It does track an index, like the S&P 500. So, if the S&P is up, so is your account. If the S&P is down, your account is the same as it was the year before. No market loss.
There is more to this but I’m not going into that much detail for this article.
Benefit number three: A guaranteed income for life no matter what happens to the market. Think of this like a DIY pension, only better. You put your money into this SGRA and at some point, of your choosing, you turn on an income.
No matter what, that income is guaranteed for your life, and possibly even your spouse’s. The market could drop 50% in a day and that will have zero impact on your income. Just like a pension, only better. The better part if you were to pass away before using all the money in the account, it passes to a beneficiary of your choice. Pensions from employers don’t work that way, generally.
What I’m suggesting is that you consider looking at all the money that you have earned over these recent years and consider putting them into an SGRA for the benefits I just mentioned. Now, the product used in these SGRAs is an annuity. Not a variable annuity that you can lose money in, and it has higher fees
The annuities we use give our clients protection, growth, and income.
If you would like to talk about locking in your gains so you can never lose any of it, we should talk. Call your agent or reach out to me at 615.975.8677 or email me at c.carlton@BothHandsFG.com.
We do insurance and investments because we believe they work together for the benefit of our clients. We don’t care what product we think someone needs. We care about their goals and desires, and we can make the appropriate recommendation from there. Sometimes it is an annuity. Sometimes it is investments. Sometimes it is life insurance. Or sometimes it is a combination. It often is a combination.
ABOUT THE AUTHOR: Cory Carlton is the CEO & Co-Founder of Both Hands Financial Group. He works with clients all over the country helping them establish SGRAs. Every Both Hands FG agent can do this too. Cory specializes on creating strategic retirement income plans.