Well, I guess it's finally time to put the boat in the water, because it appears that summer is here. Time to get outside and enjoy this nice weather before it gets too hot! I'll keep it short this month and just refer you again to what we stated last month, especially for the folks that receive this email but are not current clients.
CLICK HERE TO READ THE STUDY
Just in case you missed it, last month I referred to a new study that was done by Roger G. Ibbotson PhD. I'd encourage everyone to do a quick Google search on Dr. Ibbotson to see his credentials. He's held in very high regard in the financial services industries, especially when it comes to retirement planning. Dr. Ibbotson basically warns seniors of the current danger of having a traditional retirement portfolio blended with a 60/40 or 50/50 mix of stocks and bonds in the current economic environment. But why is this portfolio blend a potential problem?
1) The stock market will more than likely remain very volatile and is overdue for a major correction.
2) In a rising interest rate environment, the bond market will continue to lose value and that's exactly what we're in. It's really that simple. Dr. Ibbotson suggests using Fixed Indexed Annuities to replace the bond portion of a portfolio in retirement, and he has the proof to back it up.
It's in the study; all you have to do is read it. I'm concerned that not enough folks are aware of this, or not paying close enough attention to their portfolio strategies in retirement. So, I'm including the report and running it by folks again. I'm happy to report that we've been using these strategies Dr. Ibbotson suggests for many years, but it's nice to see the studies and research to back us up.
If you'd like your own
Chart Your Course Retirement Review or a second opinion on your current retirement plan, then just let us know.
And, as always, remember -
The purpose of the money dictates where you put it.
Until Next Month,