What "They" Aren't Telling "Buy and Hold" Investors!

 

Rachel Victoria High Yield Investment Planner

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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