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Missed Fortune – Something You Should Do Every 7 Years

Posted on | August 26, 2013

Redefining Yourself

One of the most difficult lessons of life is that if people keep doing what they’ve always done, they’ll keep getting what they’ve always gotten.

This is especially true when it comes to the way we plan for the future.

There are times when we need to be willing to redefine our strategies or ourselves in order to get the results we desire. Otherwise we stay stuck in a rut.

A good example of where this happens for a lot of people can be seen in how many people, out of habit, still put their retirement money into 401(k)s or IRAs. It can also been seen in folks who try to get out of debt by sending extra payments to their mortgage company.

For some people, the tendency to keep doing what they’ve always done could potentially lead to a rude awakening.

If you’ve been listening to the media lately, there’s a lot of talk about an imminent crash. No one knows if we’re talking about a crash like in 1987 where the market bounced back in just a few months, or something like the 2008 crash where 5 years later people are finally starting to break even.

Those who still have their money in IRAs and 401(k)s know that when the market declines, it can take years to get back to where they started.

But those who have learned better strategies and applied better principles have been able to weather the market’s uncertainty and have grown their money tax-free. The principles they followed have always been there, they’ve just had to reinvent themselves by putting those principles to work.

No Need To Worry

Whether or not there is another market crash headed our way, there are a growing number of folks who can sleep soundly at night. The reason they can do so is that their money is not directly at risk in the market.

They’ve learned to position their money so that when the market contracts, like it did in 1987, 2001, and 2008, they don’t lose a dime of their savings. To be fair, they may not make a lot of money during those downturns, but they’re not losing 30-40% of their retirement nest egg like so many did.

When the markets did expand once again, these folks enjoyed immediate participation in the upside. And best of all, they enjoyed tax-free growth of their money.

During a decade where most people lost a third or more of their retirement savings, folks who understood and applied the correct principles were able to double or, in some cases, triple their money.

When you understand indexing as a strategy, you don’t have to worry if a crash is imminent because you don’t lose even if the economy does crash.

Will Rogers used to say that people get more concerned about the return of their money rather than the return on their money when things get bad. Getting the proper frame of reference is a matter of having the right strategy in place.

An indexing strategy that allows you to safely weather financial storms without losing a dime yet also allows you to participate in market growth during good years, brings peace of mind.

When you have liquid assets safely earning a predictable rate of return that is tax-free, you’re on your way to a brighter future.

If you’re still stuck in old habits of how you save for retirement, a bit of self-reinvention may be necessary along the way to get the better results you need.

Take the first step by contacting a wealth architect today.

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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