You see, we have been living a pretty "charmed" financial life. Markets have been moving North since the election, hiring is up, unemployment is down, optimism is up, businesses are hiring... why panic? I am not suggesting a panic, nor am I suggesting that the sky is falling. On the contrary, I think America's best days are ahead of us and the economic footing is sound. But, it is all a matter of timing.
If your clients have 5 years or more till retirement, I might have a very rough time convincing them to go "100% Safe.” But, for those in retirement, or near, it might be a good time to re-evaluate their risk tolerance, timeline needs for income and maybe "build the wall" around their retirement nest eggs. Or, at the least... a moat.
As I am writing this, the market has responded pretty well, and we are making up a lot of our losses over the last couple of weeks. Many feel as though 2018 will end up as a "no gain" year. Think about it.
Talk to present clients that have index annuities and they should be pretty happy. What about those that purchased because of the income rider? WOW... they are in seventh heaven.
So, I started with a joke about the wall. Well, the moat with a draw bridge might be a better analogy. Maybe it is time to lower the gate and escort some riskier vehicles off of the property. Again, I’m not giving investment advice. But, I am advising you to speak with your clients and re-visit risk tolerance.
Until next time… good selling!
Raymond J. Ohlson, CLU, CRC, LACP
President and CEO of The Ohlson Group