UNDERSTANDING HOW TO NEVER LOSE MONEY TO MARKET FLUCTUATION
The winning of Mr. Donald J Trump in this elections will go down in history as one of the most shocking and exciting election outcomes in World history when he defeated Hillary Clinton in a nasty and long campaign for the American Presidency. This is a clear message from American people that they are fed up with the failure of Obama's policies, Democrats, Republican elites, and the entire D.C. establishments. Therefore, the consequences moving forward will be very crucial.
The market historically since 1946 has corrected every 8 years without fail at an average of 33.8% loss and statistically after an 8-year term sitting president the market has corrected 30.86%. This means if you live in Las Vegas and your betting on odds, you have a 60-80% chance the market will correct in the first 6 months of this year and that percentage goes up 3-5% every month after that!
President Trump's first 100 days in office will definitely affect your retirement savings? The changes that he will implement during his first 100 days will definitely impact the markets. Throughout his campaign, Trump made trade a centerpiece of his campaign. During his first debate, he called the NAFTA, “the single worst trade deal ever approved in this country.” Instead of aiming to lower trade barriers—as most recent presidents have done—Trump has suggested adding a 35% tariff on goods from Mexico.
In addition to blasting NAFTA, Trump has called for backing out of the Trans-Pacific Partnership, a trade deal with eleven Pacific Rim countries, including Australia, Japan, Chile and Vietnam, which the U.S. has signed onto but has yet to formally adopt.
He also taken aim at China— which he has accused of unfairly manipulating its currency to boost exports and purloining U.S. intellectual property—by threatening Chinese goods with tariffs of 45%. And, while the "Trade" section of his campaign Web site doesn’t mention it, Trump also suggested pulling out of the World Trade Organization during a television interview in July.
This will create uncertainty and concerns among investors, and you know what it can do to your retirement savings. Therefore, you need to learn how NOT TO LOSE MONEY from the next market fluctuation.
Billionaire Warren Buffet once said, “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
We all understand the importance of having financial safety and security in our lives. To achieve that point of financial safety and security, it involves a sure understanding that your money is really safe along the way. So, the question for you is how safe do you think your money is right now?
I spoke to a 66 year-old man a couple of weeks ago who lost all his retirement money back in 2008 when the market crashed. He had saved his money for over 33 years and was very sure that he would retire very comfortably at age 60, but that dream is now gone. At the time, he invested all his retirement money in the markets assuming that it was “safe enough,” and he went along with that assumption until one day, he lost them all. You need to understand that it takes only “one day” to lose everything you’ve worked so hard and so long for because you have not learned the art of never lose money from market volatility.
Most working Americans don't understand that their 401K and IRA contributions are going to unseen accounts where the “Allocation of Holdings” which typically include stocks, bonds and mutual funds with valuations that we assume will always increase. You will get consolidated summaries that indicate “Beginning Value” and “Ending Value” and “Change in Value over Time.”
However, those values are not guaranteed, and if you have had a retirement account for any length of time, you know that those accounts can fluctuate quite dramatically. Reports show that the average U.S. workers lost about 24.3% of his or her 401(k) when the stock market crashed in 2008. So, someone with a retirement account of $150,000 in 2008 lost a fast $36,450 without much warning.
Can you imagine if your retirement savings can never go down? What if you never had to feel helpless when the market crashes? What if you could protect your principal, hedge against portfolio risk, avoid paying investment fees and take income as needed for the rest of your life?
The key of never losing money due to market volatility requires a vehicle that will maximize the upside and minimize the downside of your savings and retirement holdings. It's basically reducing your risk and protect your principal against the hazards of history, the extremes of government regulations, the volatility of the world, and the craps table of the markets.
So if you are one of those people who are tired of not having certainty and always hoping and praying that your money is safe, you now can be sure that your retirement savings will be protected in a protected place and earn a reasonable rate of return and always have access to you money. Your retirement should be your number one fear because one day, you will not be able to work and you need INCOME!
At Perpetual Wealth Group, LLC., we specialize in helping our clients keep their money invested in a way that does not put their money at risk. Give us a call at 800-278-2105 for FREE one-hour consultation!