The RetirementPathRoadmap™ can systematically help your clients meet their retirement income goals. There are a few principles integral to adopting the RetirementPathRoadmap™ strategy:
- Safety of principal
- Long-term tax minimization
- Liquidity
- Funding flexibility
- Long term investment focus
We’ll explore how your clients’ retirement plans can be impacted by these objectives.
And what about the market? Over the last 30 years, The S& P 500, without dividends has only been negative in seven years! And in only four of these 30 years has the market lost over 10%!
Let’s take a closer look:
• In the 1981 recession, the market lost almost 10%
• When the Dot Com bubble burst in 2000, the S&P 500 lost slightly over 10%
• The aftermath of 9/11 in 2002 produced the only 3-year consecutive decline of the S&P 500 since the Great Depression
• And the only other year the market lost more than 10%, was in 2008, in what is now being called the Great Recession.
The S&P 500 lost over 38% due to the collapse of the mortgage market and banking system. Even with a 38% of the total return of the market lost in 2008, the average annual returns of the S&P 500 over the last 20 and 30 years ending 12/3/11 are still 9.59% and 12.45% respectively. Does that surprise you?
Look what has happened since 2008. It has been one of the greatest bull markets of all time. Where did most people have their money when this bull market took off? Sitting in the bank, earning next to nothing because fear overtook them.
Wouldn’t it have been wonderful, if during 2008, clients were positioned in an asset that could provide the upside of the market’s potential yet protect against downside losses? Our approach to reaching one’s retirement goals “builds in” this type of an approach with
TheRetirementPathRoamdap™.