#1: Historically Low Interest Rates
Investments that your parents and grandparents relied on such as CDs and bonds are earning less money than in the past. Today’s retirees may have to consider other alternatives to safeguard and grow their money. If you’re concerned about low interest rate returns, it might be time to consider some alternatives. We understand how to navigate our current low interest rate environment and utilize strategies that make sense in today’s market.
#2: Fewer Employer Pensions means More Pressure on the Saver
The good old days are over. With fewer and fewer pensions being offered by employers, the burden of planning is now on the saver. Without the foundation of a pension to lean on, the decisions we make regarding our IRAs and 401ks become more critical. One big mistake could lead to everlasting regrets. With stakes this high, it’s critical to get good advice from a trusted adviser before you make big decisions. We will help you feel good about the future of your retirement plans by talking through your individual goals, objectives, time horizon, and risk tolerance before any decisions are made. We can also help you take control of your 401(k) if you’re still working and contributing. We can help you minimize significant downside risk and help maximize your growth.
#3: Volatile Markets
The stock market has experienced two major crashes in the last ten years. Big losses are hard on everyone, but they are especially devastating to people near or in retirement. That’s why it’s important for these individuals to lessen the volatility in their portfolios and possibly consider protective measures. Of course, all investments have some degree of risk, but we can limit this risk with the right tools.
While we do want protection, we also want growth! Today, investors need active management, advisers who seek out sectors that are trending today. We compile unique portfolios for today’s investor. Thousands of funds are analyzed for performance, expense ratios, management tenure, risk / reward, and other ratios necessary to evaluate potential. Diversification is a key to our strategy, however, other factors like cyclical opportunities and sector momentum are considered to potentially improve performance.
We believe in a “big picture” fundamental approach. By focusing on the fundamentals; earnings, interest rates, liquidity, etc., we try to take the emotion out of investing. We take a longer-term view of the market and believe that short-term predictions are not practical. We do not actively trade or try to time the market as we deem these techniques as methods that will not add value over time. However, we do take a proactive approach and may increase or reduce portfolio risk during periods of market promise or stress.
To learn more about how these challenges might be affecting your retirement plan, please call 352-751-4590 to schedule an appointment with Kelley today.