UlTImATE SUccESS GUIdEand don’t just ride out the markets up’s and down’s and end up with
nothing but fees, headaches, and losses.
Do you have a plan when the market goes down? Ever heard of a stop-
loss? Or simply pre-determining maximum losses you’re willing to
take? If you owned a stock at $50, you set a stop loss at $45, so that if
the stock hits $45, it’s sold automatically. You lost 10%, but you knew
that, and you were okay with it since it was a pre-determined plan. Oth-
erwise, you just watch the stock continue to fall to $40, $35, $25, etc.
Now you have a conversation with your broker that sounds something
like this, “Its ok. Hang in there, hold on. Your sector’s down, the mar-
kets down, everyone’s down.” The next thing you know, you spend the
next 4, 5, 6 years chasing losses versus making money. Anyone invest-
ing in the stock market needs to have a definitive plan to keep their
profits when the market’s up, and a plan to preserve their profits and
principal when the market’s down.
The closer to retirement you are, the more important it is to protect prin-
cipal and profits. Remember, the one thing you can run out of is time,
time to make up for any bad decisions or market reversals. A significant
loss in the years just prior to, or in retirement, can have a damaging
impact on your lifestyle and your income. If a loss occurs earlier in life,
you have time to recover a significant loss, an opportunity you do not
have in your 50’s or in retirement. Don’t jeopardize a worry-free retire-
ment because you were greedy or just didn’t take the time to make a
plan. Remember, nobody plans to fail, they simply fail to plan.
The Estate Tax laws are always changing. Seek out a Financial Advi-
sor who specializes in Estate Planning Life Insurance and works with
an Estate Planning attorney to get a well-balanced plan that will ensure
your family has the money in hand when the IRS comes knocking, be-
cause the plan doesn’t stop with you and your spouse. Be sure to have
your Estate Planning in order. This includes a will, a trust, and in some
cases, an irrevocable life insurance trust. If you think you don’t have an
Estate Plan, reconsider. The State and Federal Governments have one
for you if you don’t make one for yourself. What’s the benefit in risking,
investing, and working hard your whole life and then when you try to
pass it on to your family or a charity, the IRS takes 40 to 75 %! Without
a properly-structured estate plan, your wishes may not be fulfilled, and
your loved ones could be hurt both emotionally and financially.