The other day I was talking to an acquaintance about what I do, and about the type of investments most of my clients prefer, and after I was done explaining he asked, “So, it’s like taking the gambling out of the stock market?” I said,…“exactly.”
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Usually after explaining to new clients about the type of investments most of my clients prefer, they will say, “so, it’s a conservative investment.” And although it is conservative, I think when most people ask this question, what they are really thinking is that their money doesn’t have the potential to earn what it could somewhere else – which of course, is not necessarily true.
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The investments most of my clients prefer will receive a positive return when the stock market is up over a given year, but the investments won’t lose money when the stock market is down over a given year. Will they receive the exact gain that the Dow Jones or S&P 500 does when those markets are up? Of course not, but the truth is NO investment can promise that. Some will do better, and most, according to many studies, will do worse.
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The best thing about the investments most of my clients prefer is that in the years the market does go down – and we know that will happen from time to time – they won’t lose any money in their account. This is something that investing in stocks and mutual funds cannot guarantee.
The best part for teachers is that you can contribute into these investments directly from your paycheck into a 403(b) or Roth 403(b). It’s easy to set up, and easy to make changes.
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So, if you are a current client, and you feel the need to learn more about the investments you’re in, please contact me. I’d be happy to go over your specific investments.
If you are not a current client, and you would like to see if this type of investing makes sense to you, contact me and discover for yourself if it makes sense.
—Updated July 3, 2014
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