Eliminate Losses While Diversifying Your Portfolio

Right before school starts we end up helping a lot of teachers with their 403bs. If you know you’re not happy with the school appointed advisor this year, just call us. You can pick and choose who you want to work with. You don’t have to work only with the person that showed up at your school.

There are some excellent plans out there. For example, if you’re 59 1/2 and feel limited on what you can do with your employer, there are additional options available to you. You can rollover these funds and take advantage of some of the programs that we’re working with a to consolidate IRAs.

The market is at an all-time high at the moment and history shows that when we have an all-time high, it’s often followed by an all-time low. Politics can make the markets pretty volatile and things change quickly. The market is doing well, but many of our clients are still looking to diversify a portion of their portfolio. They want to take advantage of potential gains when the market is in good shape, but also eliminate loss (or eliminate their fee).

We have noticed that some strategies, like the 200-day moving average, haven’t been working as well recently. There are a lot of people that have been involved in the 200-day moving average that have come into our office lately. When we reviewed their statements, we discovered that for some, the annual fee that is being taken out on a quarterly basis is actually more than their return. So they get to charge you a fee, and their return is less than what their fee is.

Here is an example of a fee that drastically reduced one of our client’s returns.  Our client had a $700,000 portfolio, his gain was $15,000 and he had to pay $9,000 in fees, so his average rate of return ended up being about 1 percent.

We encourage everyone to get a second opinion and check on your financial goals. We may be able to help you find some great options you have not considered yet. For example, some of our clients have been looking into annuities that have a 14% bonus upfront that can be used for future income. The annuity is guaranteed with a growth rate of 7% per year for up to 20 years.

If you enjoyed listening to Cathy and Steve or reading about our services, give us a call at 972-473-4700, or request an appointment online.


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