Aligning Your Goals

I read a provocative article in Forbes today titled “Have The Nerve To Let Your Investments Work.” The article perfectly describes why individuals- even professionals- rarely outperform the market.  Lacking conviction and making reactionary decisions, based on news, advertisements, or pressure,  virtually guarantees that you will buy high and sell low.

The article states:

“….one of the largest barrier to investors succeeding is an unwillingness to decide what they are trying to achieve. Consequently, investors never set realistic goals or devise a reasonable plan to achieve them.”

This gets to the heart of retirement income planning and annuity selection.  When working with our clients, we seek to clearly define  goals first- this can be a specific dollar amount, or a subjective goal seeking safe appreciation, or a tangible monthly income starting in a specific number of years.  But having the goal written down is the first, and sometimes hardest, step.

Once we have a goal, our job is to find the best tools for the job to achieve that goal.  We see how much it costs, and then can make an informed decision, and confidently weed out competing options and alternatives knowing that those options don’t achieve the goals. It’s really simple when you start from the right place- which is you.  Your goals and objectives.

The article continues:

If you calculate that a steady return of, say, 5% a year for the next ten years, along with regular contributions to your portfolio, will enable you to reach your goals, then structure your portfolio accordingly: perhaps a higher concentration in bonds to provide greater stability, combined with some blue chip equities that, over time, are likely to provide the growth you want. With careful monitoring of how well your portfolio is tracking the returns you need, you’ll greatly increase your chances of financial success.

It’s nice to see Forbes quoting a reasonable rate of return too, however I’d like to offer a better way of achieving that example of 5% per year.  Instead of “Perhaps a high concentration of bonds….” let me suggest Secondary Market Annuities.  Like a bond held to maturity, but bought at a discount, our SMA’s routinely yield better than 5%, with no principal risk (unlike bonds).

Remember, an SMA is simply an annuity contract from some of the highest credit insurance carriers in the market, like Met Life, Aviva, NY Life, Genworth, Allstate, Pac Life, etc.  These carriers making the payments are fully funded and obligated to make the payments, but you  have the  opportunity to become the new recipient of these  existing payment streams, yet at a discount to face value.

Secondary Market Annuities are truly one of the highest yield, safe investments available anywhere today.  If your plan includes some allocation to safety or steady income, you owe it to yourself to give us a call and explore Secondary Market Annuities

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Written By

Bryan Anderson

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