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Protecting Principal from Market Risk
Safety and Growth |
Today more than ever before investors are acknowledging that Terrorism as well as Market Corruption have them concerned about protecting what they have, their Principal.
The simplest solution for many investors has been Money Market funds and CD’s. Unfortunately, low prevailing interest rates have made this attempted flight to safety an almost certain risk.
The risk is that if dollars are not working for you, they will be working for someone else. I will note three items we all use every day. Homes, Milk and Gasoline.
With the costs of Housing, Milk and Gasoline rising at the rates they have been, how can earning 1.5% to 2.5% on your safe money allow you to keep up with the costs of living? It cannot, and therefore I recommend a plan of action that will allow you to maintain cash on hand for spending and emergencies but the rest of the dollars must be put to work.
There are plans that offer you substantial up front Bonus’ that can be used to eliminate any contractual penalties you may have in escaping low paying CD’s and Annuities.
If you have no fees, these Bonuses can simply provide you an immediate increase in your account values.
Your dollars can be invested in fixed annuities that are tied to major Stock Market Indices such as the S&P 500, Dow, NASDAQ 100 etc.
The beauty in these investments is clear. You participate only in market gains, and Never in market loses. Your Principal will only grow and never lose value, it is Guaranteed!
Remember, Market risk is not just found in the Stock Market, it can also be found in the Low Interest rate market! |
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