If it’s Risky, It’s not an Investment

By Sandie Glover and Steve GloverFOXBusiness

According to the Merriam-Webster Dictionary an investment is: “the outlay of money usually for income or profit”.  When it comes to investing in your retirement, we want to omit that word “usually” and replace it with the word “safely.”  However, we find many people are still investing in their retirement according to the original definition.

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Many people enjoy playing the stock market.  It’s a gamble and a thrill when you have gains.  It’s a gamble and often devastating when there are losses.  Yet, why do many people have all of their retirement investments in the stock market?

Our guess is when you began your career the Human Resources department told you about a 401(k) retirement program that the company would match funds up to a certain percent. They also said it was a tax deferred account so you would pay lower taxes on that money when you retired, as you would be in a lower tax bracket.  The matching part of this plan is great, because that is free money.  However, if you are putting more than the percent being matched into the account, you might want to rethink that.  You might also want to look at the cost associated with your 401(k).  Employers have to follow some rather complicated rules to stay in compliance with the law, which can be over and above typical investment fees.  Since the 401(k) is a benefit to the company’s employees, guess who generally gets to pay that cost?  You got it, the employee.

Maybe you decided instead of, or in addition to, the 401(k) to invest money in a CD or traditional IRA.  Since most CD’s interest rates have dropped to less than 2%, wouldn’t you like a better return?  We probably don’t need to tell you about how the ups and downs of the stock market have affected your IRA.  We have clients who tell us their IRAs are just now back to where they were in 2000.  They gambled and lost, and even though some are starting to see gains again, they are not where they would have been if they had they placed their money in a safe retirement strategy.

Yes, we said safe, and there are safe strategies and programs that have been around for years.  These programs allow your money to grow in the positive economic years and remain stable in the negative economic years.  You never lose a penny.  These programs allow your investment plan to be designed specifically for your goals and needs.  You are in control of them and, in many cases, you can convert your current investments to them.

We’ve found that many of my clients didn’t mind gambling on their retirement when they were younger. However, as retirement began to loom in the not too distant future, they began to be concerned if they would be able to retire, if they would outlive their money, if they would need to consider finding a part-time job because their investments didn’t pan out the way they planned.  As you think about your retirement, wouldn’t you like to know what your financial future will look like, rather than wondering what it could look like?  Take the time to relook at your retirement plan, and then find out what safe options are available to you.   If you want to retire with a certainty, we can show a strategy and share a strategy with you.  If you want to gamble, there’s always Vegas!

Steve and Sandie Glover co-host The Retirement Solution Show, a syndicated national radio program discussing safe financial strategies from Nashville each week.  Steve and Sandie have worked multiple years with individuals and families to assist with safe retirement strategies and have recently produced a DVD “How to Plan for a Tax Free Retirement”. Contact Steve or Sandie at 615-866-9514 or visit our web site www.RetireSolid.com