Back in 2008, when the stock market was falling like a grand piano hurled from a 10 story building, Warren Buffet was asked, “What’s the market going to do?” Warren slyly replied with a twinkle in his eye and a smirk half smile, “The market will go up and the market will go down, that’s what the market does.” Now that’s quite a stock market prediction.
Since 1897, the stock market (as measured by the Dow Jones Industrial Average) has had only four bull markets. The first one was from 1897 to 1906 and grew by 149 percent, the second from 1924 to 1929 (the roaring 20s increased 295 percent, the third happened between 1954 to 1966 and gained 154 percent). The best bull market of all times exploded to the upside by 1,059 percent and lasted a full 17 years, from 1982 until 1999. (Source: Guggenheim Investments DJIA Historical Trends Chart through 12/31/13).
This same chart also revealed that the DJIA experienced only four bear markets since 1897. Each bear market lasted over a decade including 18, 17, 25 and 14 years consecutively. This last bear started in 2000 and still may be intact, or is it? Merrill Lynch reported on their market commentary September 2014 that we are now in a new secular bull market that started in March of 2009.
Regardless of the market movements, you must be prepared. Your retirement readiness may be improved by using the eight investment strategies for life. What exactly are the eight investment strategies for life? The source of inspiration for these eight investments can be found in the book of Ecclesiastes 11:3 where King Solomon says, “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” The eight investment strategies are simplified into three groups: safe, moderate and risk.”
Safe investments typically earn zero when the stock market loses money. These safe investment strategies include asset-based, long-term care insurance and fixed indexed annuities (FIAs). FIAs are designed to provide a partial participation in the upside of the stock market without being affected by stock market losses. FIAs may also provide you with guaranteed income for life.
Moderate investment strategies may include tactical investment strategies such as AssetLock™. AssetLock™ technology is a tool that can help you trigger an exit from the market at a targeted downside risk level. Every day, AssetLock™ tracks your portfolio’s performance and monitors where your AssetLock™ is relative to your portfolio value.
You may also want to have some growth options for your money in mutual funds, exchange traded funds (ETFs) or individual stocks. Having your money invested in these types of investments may help you keep pace with inflation that has averaged 3.4 percent over since 1926. (Source: Morningstar SSBI chart for 2014).
Why not include these eight investment strategies in your portfolio? Why not choose one or a few or all of the eight investment strategies for life.
Consult with your retirement wealth advisor today, and have a conversation about the eight investment strategies for life. Who knows, maybe you will gain additional peace of mind through this process. Imagine how you may feel after you have put your money in eight places to prepare yourself for whatever disaster may come upon the land.