Losing money is a nightmare everyone tries to avoid, and unfortunately a stock market crash is completely unexpected – leaving many unprepared. The natural reaction is to run to safety, make ill-advised “quick fix” decisions and/or throw our careful years of planning out the window. Any of these options can wreak havoc on your financial future. There’s a better path forward.
Our team has put together what to look for when a bear market hits and how you can make the right choices in a financial crisis.
What To Watch For
Market cycles have expansions and contractions. During the contractions, we could fall into a bear market. A bear market is defined as a decline of at least 20% from the market’s peak to it’s low during the selloff. This 20% drop is significant because when the market enters “Bear Territory” it can take years, or even decades, to recover. Years you can’t afford to play catch up.
The hysteria from the market crashing may lead many investors into massive sell-offs. Unfortunately, this fear only leaves you with an unsettled feeling and negative outcomes regarding your investment success.
At this point, we understand the desire to put financial safeguards in place due to the natural cycle of the market. Let’s make sure you pick the best one.
Peace of Mind Starts With Preparation
When we get in our cars, our goal is to get from point A to point B safely. That’s why we wear seatbelts. When there’s been a car crash, the first observation is whether or not they had one on. The same should be true for investing in financial strategies that grow at a reasonable rate but are protected when the market crashes.
A protected financial strategy starts with identifying a team that understands the best way to set up a strategy that works for you. There are millions of different ways to curate a financial strategy, but only a few ensure you are protected when the market contracts while gaining a reasonable rate of return when the market is growing.
With over 20+ years of experience in matching clients with investment strategies and wealth management, we know that peace of mind comes from preparing your portfolio to weather the ups and downs of the market. Our clients sleep well at night, knowing their portfolio is properly prepared for downturns in the ‘bad times,’ and knowing that they can harvest the rewards of the ‘good times.’
Protection Strategy Options:
Bonds: During times of crisis, some people turn to bonds as a protection strategy. Although they can be a form of protection, the rate of return is so low that they often don’t prove to be a beneficial strategy for the future. Currently, bonds are yielding up to a 1% return on average. In addition, bond portfolios can lose money. Bonds are usually less volatile than stocks, but they don’t provide a guarantee against downside market losses.
Fixed Index Annuities: Carefully selected Fixed Index Annuities (FIAs) can be a great option for a protected financial strategy. With FIAs, your accounts go up and never down. Your principal is completely protected, and the best FIAs have seen, historically, returns around 6%-8%. Many prudent investors call FIAs the ultimate protection strategy that grows.
Remember, preparation is essential in moments when the bear market hits. That’s why we stress the importance of having a qualified & experienced financial team by your side.
Our financial strategies have positioned our clients time and time again for success. When unexpected hardships hit, we value strategists that are calm, collected, and focused on your best interest. This is key to success and most importantly, peace of mind for your future.
Are you ready to gain peace of mind over your finances regardless of what’s next? Call us today to speak with a Financial Strategist.