What "They" Aren't Telling "Buy and
Hold" Investors!
By Rachel Victoria, MSFS, former CFP
September 19, 2008
As a former Financial Planner, I found
it extremely challenging to watch stock market investors being
strapped into the wild roller coaster ride that has so far
occurred this year. In case you haven't
been able to bear watching the financial
news recently, in the last year we have watched a real
estate foreclosure crisis (prices fell 40-70% in some areas), a banking,
financial, and mortgage crisis (Indy Mac, Ameribank, Freddie, Fannie, Lehman
Brothers, Merrill Lynch, Bear Sterns, and AIG), and a 14% decline in the Dow
Jones year to date.
Compound that with
my taxpayer dollars
bailing out these companies
(including mult-million dollar CEO compensations), the 9.6 trillion dollar
gross national debt, and the cost of two simultaneous wars, it can
overwhelm the average investor.
What "They" want you to do?
Well, if I were to follow the advice from "the
Experts" on the Financial News shows, brokers, and most financial
newsletters, I would just "buy and hold". "They"
tell me if I am still not going to use the funds in 5 years or more (sometimes
30), to just "hang in there". And, that's exactly what I was
taught in my traditional financial planning training, as a Certified Financial
Planner.
However, after decades of hands on experience in the
Financial Planning Industry, I started questioning why I should just "buy
and hold" and allow my principal to decline in down markets about
every 5-7 years and then rebound usually in 2-3 years. Really, how could I
build Real Wealth if I continue to lose a large percentage of principal
every 5-7 years? I knew there had to be a better way, but I didn't want to just
sit in low yielding fixed rate investments. And, from my own personal
experience, I knew real estate had similar challenges and lacked liquidity. About
every 5-7 years my real estate values would decline substantially, and stay at
low values for usually 2-5 years.
I also had other concerns. Why did my mutual fund and
variable annuity managers make large salaries in years where I
had losses? In years where I had substantial gains, why weren't their
management fees capped. How much did it really cost me as an
investor (in lower returns) to support mutual fund start up costs, marketing
expenses, SEC regulation, state regulation, management fees, financial planner
or broker fees, etc.?
What I'm Doing?
I began researching and experimenting with alternative
wealth strategies.
(Wow, did I learn that you can't believe everything you
read. You definitely need to get facts, third party verification, or verify
claims yourself.)
However, after literally years of research, I finally
found the right strategy that met my objectives:
1.
High Returns.
2.
Expert Guidance.
3.
Liquidity.
4.
Diversification.
5.
Sometimes even a
100% performance guarantee.
Simply put, this strategy utilizes specific succesful Verified Advisory Services to Net me the returns I want with the added safety of a firm who's only job is to fully qualify other firms and investors.
Now I know better when the "Experts" offer advice about my financial future! There Absolutely is a More Effective and Efficient way to build Real Wealth. To learn more about this effective strategy to build your wealth quickly, please visit:
To learn more (if not already here), please go to my website:
High Yield Income
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