January 11, 2018
Saving for retirement can be a daunting prospect. With so many choices as to when to begin saving one’s money and how the process can feel overwhelming. While lower-risk options like annuities and cash value life insurance policies have become the golden children of the retirement planning industry—and for good reason—trading stocks still provides a dynamic means to grow one’s money at higher dividends and more quickly, though without risk.
A hot group of stocks to watch come from the technology world. Like the tech boom of the 90s, the 2000s is seeing a new revolution as technologies like artificial intelligence evolve and become more ingratiated into our everyday lives. While the names of these companies may not ring bells right now, Frank Rezack, a commodities trader turned financial advisor and principal of Evergreen Financial Services, reminds: “There was a time when Apple was a $5 stock. People of my generation watched companies with no income, grow to be the titans of today. We watched as computers took over pen and paper, and as the cell phone all but wiped out the house phone. A few years ago, people wouldn’t have believed there would be self-driving cars but they’re here. It’s clear how revolutionary these technologies can be, and riding the wave as they rise could spell increased profit margins for investors.”
How will people know to invest in these particular companies and technologies? Solid advice is key to identifying the right companies to invest in at the right time. While many people turn to the larger nationwide financial firms for their financial advice, smaller firms and independent advisors may be preferable as they are able to offer more personal attention and provide more active and dynamic management. “When servicing 3,000 clients, there’s no way to give each one the attention they deserve,” Rezack notes. “With a smaller boutique firm that only services about 150 clients, advisors can really get to know their clients closely enough to understand when these exciting new types of investments may work for them even when they don’t know to ask for them.”
As exciting as these new opportunities may be, as many investors found out when the 90s tech bubble burst, putting money behind the promise of new technology is not without risk. Rezack points out that it’s important to assess one’s risk tolerance before investing in order to remain comfortable with what can be a fast-paced and ever-changing process of money movement. In addition to the pace, the language of investment can be intimidating for the inexperienced. As such, there’s a lot that advisors can do to help their clients have the best experience as they invest. “Breaking things down into plain language is important, as is ensuring the client knows exactly what’s being done with their money and why,” Rezack adds.
Though all of these new investments have the potential to be profitable, it’s important to keep that risk in mind and be smart and frugal. For the long-term, understanding and investing in products like annuities and life insurance policies that gain slowly and steadily is still going to provide the most stable retirement savings base. And in the short term, stock investments can provide a much-needed boost to the nest egg that will eventually be deposited into one of these lower-risk accounts. Each of these is a part of what Rezack outlines as a three-step approach to retirement planning which includes strategies for building one’s portfolio, maintaining and managing the funds, and then accessing assets after retirement. Addressing the first two steps with a diverse and well-managed portfolio that includes solid long-term and short-term investments is a good move toward attaining financial security in those post-retirement years.
Disclosure: This material was prepared by Instant Authority and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product, and should not be relied upon as such. Evergreen Financial Services offers securities through Berthel Fisher & Company Financial Services, Inc. (BFCFS). Member FINRA/SIPC. BFCFS and Evergreen Financial Services are not affiliated with Instant Authority.
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