Most people think their money is secure and that their investments are diversified because they have different types of products (i.e. stocks, bonds, international, domestic, developing market, etc.).
However, there is something very important to note about each of these items…they are all tied to the stock market. So, regardless of the types of products you have, when they are all in the same place you are not actually that diverse or protected. This is a great time to check in with your investments—to look at where your money is going and whether you are diversified enough to sustain a market crash.
Amazingly enough, the market has been healthy and strong for about the last ten years; however, it did go down 800 points the other day. And, historically speaking, it tends to crash or correct itself about every seven years. Meaning: we are due for a downturn.
I say all of this not to scare you, but because I am passionate about making sure people have the information they need to make the smartest financial decisions for themselves and their families.
When the market crashed in 2001 my mom lost $2 million. And, when it crashed in 2008 many people (including my husband) lost their jobs—and some even lost their homes.
So, what is the answer to ensuring you are diverse, protected and could withstand a market downturn?
Some people turn to banks, which is fine, but your return on investment is low—usually around .1%. Some people turn to real estate, which is better but can also be risky. What most people don’t know is that there are other products out there. Products that mirror the market when it’s going up, but don’t deplete your money when it crashes or goes down. These vehicles are incredibly safe and are great for long-term savings or retirement. Not only do you gain the peace of mind that your investment is protected in the event of a market downturn, but you don’t ever pay taxes on that money again. Additionally, my clients who utilized these products last year had a 15% return on their investment!
Most people don’t know these types of products even exist, because they have been a well-kept secret of the wealthy for generations; however, they are now more available to everyone.
One of my favourite things is educating people about their options, helping them come up with a roadmap, and equipping them to meet their financial goals. If you would love an advocate to help break things down into understandable, bite-sized pieces and ensure that you truly are diversified and protected, I would love to connect!
You can schedule a free, no-pressure strategy session right here. During our time together, I will share about these products and help you look at the best options that make the most sense for you.
Want to know more? Here’s a quick video that goes along with today’s blog:
The market went down 800 points the other day. Who knows what will happen next? What we do know is that the market historically usually corrects/crashes ( you pick your word) every seven years. It's now been going up for the last ten years since 2008. What do you think will happen next? Do you want your money in a safe place? Do you have guarantees on your investments? There are safe products out there with the financial firms I represent. I invite you to check them out and diversify wisely while you have time. <3
Posted by KT Finances on Thursday, October 11, 2018
As always, sending you tons of light and love.