income, interest rates, retirement, risk management

Being Too Fearful Can Hurt Financial Security

I have spoken to many people in the past year who are fearful in the current market environment… High market valuation, trade war fears, warnings from pundits, Fed policy moves, volatility… Because of fear, many people have decided to sit in cash or even liquidate their retirement savings.

In a recent study the World Economic Forum examined the savings shortfall around the world… the situation where due to increasing longevity people are expected to outlive their savings. One of the key findings was the demonstration that Japanese savers are extremely conservative in their investing style, avoiding equities and only using cash and bond equivalents for saving. The result is Japanese women face a savings shortfall of 20 years compared to American women who have a savings shortfall of 10.9 years. A lack of growth in assets hurts financial security. (1)

Historically stocks and equities have outperformed cash and bonds as an investment vehicle.

The challenge for investors is to overcome the fear of potential loss and to stay invested. Fear is a very real issue in the current political and economic environment.

Based on these assumptions alone it is clear that as we approach retirement, we need to identify strategies that will help us manage these risks in retirement. How can we keep up with inflation, make sure we don’t outlive our money, and create a guaranteed income stream?

For savers and retirees, a solution to these issues are annuities that provide guaranteed retirement income. These types of annuities create a lifetime guaranteed income stream while giving the investor the ability to stay invested in the market. If the market declines, they will continue to get their stream of income.

By contrast, someone invested in the market without such guarantees, drawing income and experiencing a down draft in the market they may find themselves running out of money during retirement.

This fear, running out of money during retirement, is people’s number one fear according to several recent studies. (2)

If you want to create a secure retirement income while investing in the market, please reach out to me to discuss options that can help you protect your lifestyle regardless of what happens in life.

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

To learn more contact:

James Cox

Cell: 267 323 6936

Email: james.cox@ffgadvisors.com

First Financial Group Advisors 744 W Lancaster Av Suite 235 Wayne, PA 19087

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Annuity guarantees are backed by the issuing insurance company. Features mentioned may be available for an additional fee.

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Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Devon Financial Partners, LLC is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 

2019-81667 exp 6/2021

  1. https://www.weforum.org/press/2019/06/retirees-worldwide-will-outlive-their-savings-by-a-decade-and-women-will-fare-worse/
  2. https://jamesacox.com/2018/06/22/how-to-set-up-guaranteed-retirement-income/