Safe investment in a turbulent stock market

There are a few things you need to know to ensure you invest your money safely. First, the stock market isn’t a very safe place to put all your eggs in one basket. You really need to diversify your portfolio to ensure you keep up with inflation.

Have you heard of institutions or advisors who invest your money and are in control of your finances, like Bernie Madoff or The Stanford Financial Group? Many people have just opened accounts and let these types of financial organizations invest all their money. The problem is that whether these guys made money or lost money, these guys still got huge commissions on your money. They were also in full control of your money so these institutions or people ran illegal ponzi schemes with your money and as long as they kept getting new money from investors it seemed like they were investing your money properly. They guaranteed returns of 10% and more.

The problem I have with not being in control of your own finances is that you never know what will happen to your money. Investors became creditors to these institutions, and many never got back the money they invested.

As an investment advisor, I always make sure my clients can log in and manage their own money and see how their investments are performing.

The stock market is very unpredictable and taking big falls at this point and my focus is not to lose money when you invest your money and to be as tax efficient as possible. I have millions of dollars invested and make sure that losing is not part of my philosophy. You still need to invest in a 401k plan if it’s offered at your job, but diversify your investments in your 401k plan and make sure you allocate some in the money market sector to limit risk.

I use annuities and insurance to invest large sums of money and still get great returns of 7%+ without the risk of losing capital even in a down market. If you only invest in a fixed annuity, you won’t keep up with inflation. When you invest in a variable annuity, you are exposed to stock market risk, which can result in large losses. I’m an indexed annuity expert and have sold millions of dollars of them and they continue to grow because the capital is safe and also the ability to keep up with inflation and the tax deferral of profits is important.

When you invest large amounts in indexed annuities, you also have low management fees, unlike variable annuities, which, like the stock market, require a person to manage the funds, which adds to the fees. Indexed products are compared against a benchmark such as the S&P 500 or another index and therefore result in lower operating fees. Buying an indexed annuity comes with serious compliance to ensure this type of investment is right for you. First, I need to make sure that this investment is right for the investor as your money is tied up for a period of time. The company will also ensure that this investment is right for the buyer and then the investor has free time to make sure the investment is a good fit. More often than not, a pension isn’t right for a person in their late 70’s or 80’s, but compliance will determine that depending on the situation. When a client is closer to 80 years old, we look at indexed life insurance policies to see if we can solve a problem for them. I do a good job of due diligence to make sure my clients are the right fit for the product that will solve their money problems.