Protecting Your 401k and Other Retirement Plans from Market Downturns
Placing some of your retirement funds in alternative investments
With all the recent turmoil we’ve seen in the stock market and the overall economy in general, I wanted to take a minute to reaffirm your decision to place some of your money in alternative investments and tax-deferred vehicles that will protect your money from market downturns.
The Two Most Powerful Features
I also wanted to point out two of the most powerful features that this type of savings vehicle offers you. It is times like these when the true power of this type of tax-favored vehicle is on full display.
Despite record losses in the market over the past 30 days, you have not lost ONE CENT of your hard earned money that you deposited. In my opinion, this is the most powerful feature of this savings vehicle; your money is protected from market downturns.
The second powerful feature that you will now experience is the “reset” feature. Let me explain why that is so powerful.
Let’s assume the S&P ends the year at 1,000 points, which would be 500 points below where it started. Now, if your money were directly in the market, the S&P 500 would have to get back to 1,500 before you made any money on your investments. With the money you placed in this special tax-deferred vehicle, we would “reset” our starting point for the next year at 1,000 and capture interest credits as the market goes back up. We don’t have to wait until it gets back to 1,500 points!
During turbulent times, I am always thankful to have preached the importance of protecting your assets from market downturns. The losses many people are suffering in the market will have a devastating impact on their retirement years unless they place some of their money in alternative investments or a tax-deferred vehicle that will protect their money from market downturns.
If you have any questions about your investment portfolio or alternative investments, please don’t hesitate to call me at (724)228-3440. Thank you for the trust you’ve placed in me and sleep well, you are in good hands.
For Prospective Client’s
Want us to access your retirement plan? If you would like us to help you protect your money from market downturns, please feel free to call us at (724)228-3440.
Our office is located near Pittsburgh, Pennsylvania on Washington Road (Rt. 19) in South Strabane Township. We would look forward to meeting you!
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