by: Cory Carlton
What’s going to happen to the market? What should you be doing?
We all know the market has been a bleak topic this year as many people have lost a larger percentage of their retirement savings.
We often are asked what’s going to happen in the future and sadly our crystal ball is in the shop. There are some experts that have an opinion worth noting…
Jamie Dimon, CEO of JP Morgan Chase, believes that both the US and global economies will be in a recession by mid-next year. With Europe already in one that makes some sense.
Dimon attributes many things to this opinion, but fast-rising interest rates and inflation are among the reasons he feels this way. He also believes there are going to be unknown impacts from Russia’s war in Ukraine.
Charles Evans, the President of the Chicago Federal Reserve, agrees with Dimon citing mainly the steep rise in interest rates as a leading factor.
Dimon said that he believes the S&P 500 could fall another 20% which will be worse than the 20% it has already dropped.
So, experts think things are going to keep going down. Others think that things may be getting ready to turn around.
This chart published by LPL research shows how the economy has behaved in years with mid-term elections. Like we are in right now.
Take a look.
For the last 70ish years, the S&P has been down before the mid-term elections and a year later the market has been up substantially.
EVERY SINGLE TIME!
Experts have valid reasons to believe that a bull market is coming up or that a recession may slap us in the face.
So, what are you to do?
It’s important that you have a portion of your retirement savings in a position that will be protected and grow when there is growth to be had.
READ THIS IF YOU ARE NEARING RETIREMENT OR ARE CURRENTLY RETIRED!
We call them Secure Guaranteed Retirement Accounts. Here’s what they do…
You will never lose a penny due to market volatility.
When there is growth in the market, you will participate in it.
If the market grows by 10%, you can be credited with 20% or more.
So, in years like this, your account won't’ grow but you also will not lose anything. Then, when there are growth years you will be able to outperform the index in most cases.
If you want to take a conservative approach, get a guaranteed interest rate on your money no matter what.
Or you can turn a portion of your savings into your own private pension that you, and your spouse, can never outlive. Even if you use more money than you put into it, you keep getting your income. Anything left over goes to your beneficiaries.
We use various types of annuities to achieve this. If you want protection, growth, and guarantees there is no other product in the world that can do this.
READ THIS IF YOU ARE NOT NEAR RETIREMENT BUT SAVING FOR IT
For those saving for retirement, we want our money to grow. Shockingly, a report was recently published that evaluated peoples’ retirement savings and it discovered that 74% of retirement assets were made up of what the person contributed/saved themselves.
That means only 24% came from growth. This means two things…
- It is vitally important as to how much you save [no big shocker there].
- It is vital as to where you save your money.
7702 plans. These plans protect your money from market volatility so in times like this, you can’t lose a cent. But when the market is growing, so will your account.
In fact, it may outperform the market in some situations.
Not only is your money not at risk but the income you receive will be 60% - 80% more than if you saved in a 401K or IRA and it will also be tax-free.
Just like a Roth but with no contribution or income limitations.
Our suggestions here give people a plan for when the market is down and still let them participate in the growth.
Three words that could cost you big in retirement…
WAIT AND SEE
What are you waiting for? The market to go down more? To lose more of your money? To pay higher taxes? For the market to go back up? When will it go up? How long will that take?
Waiting is not a plan for saving for retirement.
If you have concerns about where the market is going, then we should talk.
It’s times like this that you need to make sure you have a plan and someone to help guide you.
ABOUT THE AUTHOR: Cory Carlton is the CEO & co-founder of Both Hands Financial Group. He focuses on providing people with secure retirement options that give them security from uncertainty and consistent returns.