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The Perfect Investment

  October 02, 2017
By Dennis Kagel, ChFC, Chartered Financial Consultant

Whenever I ask anyone what features they’d use to describe the “perfect investment,” I always receive pretty much the same response:
  1. A great rate of return
  2. It should be safe and guaranteed
  3. It should be 100-percent liquid
  4. It should be tax-free
Well, I have bad news and good news for you. First of all, the bad news: there is no such investment! The good news is that all the desired features of a so-called “perfect investment” are available to everyone, it’s just that it’s necessary to utilize more than one plan or strategy.

In the investment model that we create for our clients, we take advantage of principal protected strategies that are designed to be defensive in bad times and opportunistic in good times. It’s usually quite a pleasant surprise to people when they learn that there are investments that are retirement designed to help protect what they’ve worked so hard to build. People tend to lose sight of the fact, that many times, the easiest way to make money is to protect what you have. Although there is nothing safe or guaranteed about investments, this strategy is intended to replace characteristic number two.

The investment plans we design are based on the fact that our clients need performance and protection. We are constantly on the lookout for the best ways to generate the best returns with the lowest amount of risk. Typically, advisors and investors in the past have thought in terms of the old model, which is shown below:

Experience has taught me that advisors typically offer investors a choice between the two boxes centering around the old “risk/reward” theory.

A new way of thinking
Even though nothing is guaranteed in the world of “risk and return,” there are risk-managed strategies available today that have as their main investment goal to seek returns while reducing the risk. This is mainly done by managing the downside through the creative blending of non-correlated money managers and management styles. These are designed to address numbers one and three in our list above.

The “tax-free” aspect (number four on the list) is actually a separate subject and involves far too much detail to be included in this article. Suffice it to say that, in my professional opinion, there are only three strategies available today under the current tax code that provide an opportunity for “tax-free” growth and withdrawals.

If you’d like to learn more, please give Dennis Kagel a call at 309-454-9171 and he’ll be happy to provide you with a financial education that could make a big difference in your financial future.

The information contained within this article is believed to be accurate at the time of writing and publication based on our understanding of current tax laws and available investment strategies. Investment Advisory Services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through Dennis Kagel Financial Services. Securities transactions for Horter Investment Management clients are placed through Trust Company of America., TD Ameritrade and Jefferson National Life Insurance Company. Annuities and life insurance offered through Dennis Kagel Financial Services.
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October 02, 2017


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