Predicting the Future

Predicting The Future

PREDICTING THE FUTURE

Do you believe the stock market is going to average double-digit returns anytime soon?  Do you worry about your money going backward in a Bear market?  Do you worry about the next 9/11 or next war that will erupt around the world that will affect oil prices and the stock markets in a negative manner? Can you predict when the next downturn or upswing in the market will come or when the next hurricane or earthquake will come? Can you predict who will be elected as our next president and Congress and what financial policies they will implement which will have far-reaching effects on our economy?

We are poking a little bit of fun at all the variables of investing to make a point.  If we are honest with ourselves, we will admit that none of us knows which individual stocks or mutual funds will be going up and down or when the next big national or world issue will come up that will affect our actively traded money.

20-year returns

(*DALBAR study)

Buying high and selling low

When you read the next few paragraphs, you will understand the above statistics; and many of you will be nodding your heads in agreement with a painful smile appearing on your face.

It is our opinion that over time the stock market will go up but that we don’t really know which stocks will be the big winners.

For example, won’t you agree that you and your financial advisor would have purchased Wal-Mart—one of the largest companies in the world, consistent earner, paid dividends in July of 2003 instead of K-Mart—just emerging from bankruptcy, big marketing tie to Martha Stewart (who was looking at jail time), no anticipated dividends. How would you have done? Wal-Mart went from $56.08 to $51.76 and K-Mart went from $24.20 to $76.80. Data from Yahoo finance.

Why did the average investor from 1992-2012 have returns of 3.49% when the average mutual fund returned 7.81%?  Because we are professionals at buying high and selling low.

A better way?

What if there was a wealth-building tool that came with an Income Account Value* (not walk away value) that could provide a guaranteed lifetime income* you can never outlive? Would that interest you?”  Most people would say yes. If you are interested in learning how to grow your wealth in this guaranteed manner, please click here.

*Any guarantees mentioned are backed by the financial strength and claims-paying ability of the issuing insurance company and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract.

No downside risk and tax-free growth and withdrawals

If you had money in the stock market over the last 10+ years, the chances it went backward 46% from 2000-2002 and 59% from 2007-March of 2009 is significant. The bottom line is that no one can predict the future. Many people are tired of chasing returns and the next hot fund while hoping the next stock market crash doesn’t come when they are trying to build wealth. Our firm uses wealth-building tools that mitigate or eliminate risk and allow your money to grow tax-free and be removed tax-free when you are ready for retirement. To learn how you can grow wealth with the least amount of risk and in a tax-free manner, please click here.

If you have any questions about the content on this site or if you want to discuss how we can help you protect and grow your wealth, please click here or phone (703) 475-6266. To sign up for a free consultation or to just get more information click here.

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