Understanding the Risks of Mutual Funds

A person tells me that they are going to invest their DROP into Mutual Funds.

Then that person cannot answer how a Mutual Fund really works, or the Risks and Fees involved, nor which of the thousands of Funds are suitable for them ?

People often buy what their Neighbors and Friends own.

But that’s sales and guesswork, not research or prudent Financial Planning.

If you are considering Mutual Funds, Exchange Traded Funds, and Hedge Funds: all three are simply a professionally managed portfolio of stocks, bonds, commodities, and other Risk Assets.

Fund Fees vary, but the Fees are charged whether You Win or Lose money.

You may lose money, but you are still charged fees, year after year.

Even Mutual Funds invested in Bonds can lose value for a variety of reasons.

Bottom Line : Funds are just a proxy for the Risk Markets. All Funds have fees, and all Funds can lose principal.

The Twin Killers in Retirement – Risk and Fees.

Talk to people who owned Funds during the Market declines of 2000 to 2003, and 2007-2009 ? Ask them how that worked out ?

Then ask me for an article that details how much money was lost in some of America’s “ best ” Mutual Funds during The Great Recession of 2007-2009.

If you want to invest Your IRA Nest Egg in the Risk Markets … I am not The Advisor for you.

I am a Fiduciary, so I am legally and ethically responsible for safeguarding your Money.

My # 1 Job is to protect your Money.

Not speculate with it, nor lose it on You. Especially in Retirement.

It’s easy for other people to take Risks with your Money.

I am a Fiduciary, so Rule # 1 for me is : “ Don’t Lose A Client’s Money ! ”

After 42 Years of working with Retirees, it has been my experience that Retirement is all about Peace of Mind.

You want to enjoy and spend your Money, not worry about it or lose it !

Because Money Stress can be life-changing, both financially as well as psychologically.

In Retirement, you want financial security, stability, and predictability.

Not Risk or Losses.

I believe that Job # 1 for You is to NOT LOSE YOUR PRINCIPAL late in Your Life!

A person has the luxury of time to recover from Market Losses early in Life.

But losing money in Retirement can be devastating to your financial and emotional well-being.

For my Clients, I believe that A Happy Retirement is where you no longer worry about Your Money.

You just know that Your Money is safe.

That’s it. You don’t stress about your Money.

We spend all of our lives working for, and stressing about Money.

We work and scrimp and save so that we can get to “ Our Golden Years ” and be comfortable.

So when you are near or in Retirement, it is Too Late in Life for you to Lose Money, because …

Do not under-estimate how stressful and consequential it is to lose Money in Retirement.

How are you going to recoup your losses ?

Go back to work ?

If you can even find work at that age, and your body can handle it ?

Cut back on spending and traveling and having Fun ?

Make Do with Less ?

Scrimp and Save to offset your losses ?

Wait, worry, hope and pray for the Markets to recover ?

Is your Retirement strategy going to be :
“ Hang in there “, “ Ride it out “, “ Don’t look at your statements “ ?

But wait and worry for how long ?

And what if you cannot wait because you must take out your IRA Required Minimum Distribution …

Exactly when the Markets are down, forcing you to “ Sell Low ” ?

Losing Money stinks at any age.

But Losing Money in Retirement can affect your entire Standard of Living and State of Mind.

Bottom Line : It’s easy for others to take Risks with your Money.

Brokers, Relatives, Friends, etc. are happy to give you advice … because it’s not their money at risk.

But ask them if they are going to compensate you if you lose money ?

So be careful before you invest your DROP Lump Sum in The Risk Markets.

Because Losing Money late in Life, in Retirement, can change your entire Life for the worse, and fast.

 

Please call Fraser Allport, a DROP Specialist,
at 386.882.6256 for your
Complimentary Consultation.

 

It is Too Late in Your Life to make Money Mistakes!

 

Be A Good Steward of Your Money.

 

Call Fraser, a Financial Professional with 42 Years of Experience.

 

You call a Professional for every other project in Your Life, right ?

 

Please see Fraser’s invitation below for a Complimentary Consultation to help you start your Exit Plan to Retirement.

 

Starting any Project is the hard part, but Fraser can help shepherd you with a Plan of Action.