Do You Have Your Retirement Accounts in the Right Place?
January 02, 2019
By Dennis Kagel, Chartered Financial Consultant
Like most you’ve saved in your 401(k). You feel like you’ve worked hard for years and tried to do the smart thing.
In 2001 to 02 you lost some due to the market, but you hung in there since you listened to all the “financial talking heads” who said it will come back, and it did come back. Then in 2008 it crashed again, and most people saw their accounts go down again. But, you held on since you were told that it would come back. This time it took a few years, but eventually, it did come back. It even grew from the pre-crash levels. You feel smart because you held on and now you are in the positive.
Then you stop to think what a market loss really cost you. If you had never lost money in 2001 to 02 or in 2008, what would your account balances look like if you could have compounded that money versus waiting for it to come back? Suddenly, you feel kind of sick to your stomach when you realize the true cost of market losses. They are actually quite astronomical after you calculate them. (Keep in mind that a 25-percent loss one year requires a 33-percent gain the next year just to get back even.)
Then you sit down, feeling a little tired from working hard all those years and look at your statement balances (401k, etc.) and wonder if this will last you for the rest of your life. You begin to wonder if there is a better way, or perhaps another way to supplement what you already have to provide the peace of mind that comes from knowing you’ll have a guaranteed income for life, a type of “paycheck for life” that will hit your mailbox each month guaranteed for the rest of your life, even after you retire!
As you start searching for options you ask yourself if you’ve been blindly operating under a “follow the herd” mentality that has perhaps led you a little astray. You’re concerned that another market correction could be coming. Sir John Templeton said, “The most dangerous words in investing are . . . this time it’s different.” Market cycles (ups and downs) do tend to repeat themselves.
You can chart a different course. What if there was an investment strategy where your money would go up with the market, never down, and lock in your gains — forward ever, backward never. Good news; such a strategy does exist! You owe it to yourself and your retirement accounts to know about all your options.
For more information on how this financial strategy works, contact Dennis Kagel at 309-454-9171. His office is located at 321 Susan Drive, Suite A in Normal. There is never a charge for an initial meeting to get acquainted and to learn about your financial situation. You have everything to gain and nothing to lose.
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