Growing Your Money for Your Important Financial Goals
Everyone’s goals is to grow their money, so they can accomplish their financial goals such as traveling to Hawaii or Europe, helping others and being prepared for inflation and future medical costs. This list could go on and on.
The challenge is that the Stock Market has been down a number of times in the past 100 years. The old way of investing is to have a mix of stocks and bonds, as a way to diversify. This is not really diversified since stocks and mutual funds tend to move in unison or in the same direction together. This model can be very outdated, like we saw in 2008 when both stocks and bonds were down.
Even if you were earning 10% returns on your money every year, one bad year like we had in 2008 could wipe out most of your gains so you are back to where you started. Or it could put you in a hole so you have less than what you started with. Market takes the stairs up, and the elevator down is how the saying goes. You need a greater gain to make up for losses.
Think about having a Mathematically Correct Solution so you can have all of your money grow with some added protection regardless of whether the stock market performs the way we want it to or not. This means helping to increase the potential for returns and reducing your risks, while being as tax efficient as possible.
It might mean having stocks, but not having everything in stocks and bonds, which is not really diversified and where all of your money has a risk of loss.
Have 3 different “buckets” of money, or accounts. Each account is geared for growth, and with different levels of added protection. When the markets are up, your portfolio could be making money. More important, when the markets are down, you have predetermined added protection in place to limit potential losses, so gains can be “locked in” when structured correctly.
Let’s chat about your financial goals. Give my office a call at 402-904-7575 so we can discuss your situation and potential steps to help put you on a better path.
Mike Riedmiller Wealth Management
Iowa, Missouri, Kansas, South Dakota, Colorado
Nebraska Retirement Planning options baby boomers
Omaha investment planners
Lincoln NE retirement planners