It's Time to Think and Invest Differently for Retirement
For anyone planning for retirement, we believe strongly that it is time to think and invest differently.
To be sure, investing for retirement has been more than a little challenging lately. It is no secret that the stock market has lost money for more than a decade. Bonds are now a high risk asset class and are dramatically overvalued as they near an end of an historical bull market. Inflation risk is very real going forward. Real estate may continue to struggle for years. Fixed income and CD yields are too low to live on. And Modern Portfolio theory has been debunked.
Yet there is reason for hope going forward – assuming you decide to think and invest differently, that is!
Enter the Era of “Risk Managed” Investing
Risk Managed Investing is an approach to long term investing that focuses on protecting your capital and managing the ongoing risks of the markets while seeking out low-risk opportunities in a variety of markets.
The bottom line is this: You have worked hard to save/invest so that you can retire comfortably and with a sense of financial security. But unfortunately, the days where investors can “set it and forget it” in mutual funds are over.
Today’s markets demand that investors planning for retirement have a plan to:
- Manage risk and protect your hard earned nest egg
- Combat inflation
- Capitalize on growth opportunities
The good news is the IRA-401K Manager is designed to do just that.
Just Say No to 'Buy and Hope'
During the 1990’s, marketing campaigns from the mutual fund industry convinced investors that managing the risk of the markets wasn’t needed. No, “buy and hold” was the message of the day and investors were told that they should simply invest for the long term.
However, the concept of long-term investing has certainly proven to be relative. You see, thirteen-plus years and two devastating bear markets since the turn of the century have produced net losses in the stock market. As of this writing (December 2012) the S&P 500 index is still lower than where it stood on December 31, 1999.
In fact, as of the end of 2012, growth mutual fund investors are still down on any money invested at the end of the last century. So, being a “buy-and-hope” investor who has been in it for the long haul has produced nothing but losses over a very long period of time.
According to Lipper Analytical, the Lipper Growth Fund Index is down -17.38% from the beginning of 2000. As such, investors who put money in growth stock funds at the end of 1999 expecting the strong returns of the 1990’s to continue still need a gain of more than 21% just to break even.
From our perspective, it is safe to assume that no investor would want to remain fully invested in the stock market during history’s major bear markets. And why should they? Today there are risk management strategies available to all investors that can help lessen the impact of the inevitable cyclical downturns in the markets (there are even methods available that can profit from market declines).
However, turning a blind eye to the inherent risks of investing is exactly what the “buy and hold” crowd wants you to do. Thus, we believe it is time to just say no to “buy and hope.” Remember, hope is not an investment strategy!
Managing Risk is Vital to Your Retirement Plan
Managing risk is especially important to anyone planning for retirement. In short, no one wants to see their nest egg lose -30%, -40% or even -50% during the next bear market! Nor should they.
Remember that the “mathematics of loss” is a brutal lesson. For example, if you lose 25% during a bear market, you need to gain 33% in order to breakeven. If you lose 33%, you need to gain 50% to get back to where you were before the bear market began. And if you lose 50%, your portfolio needs to double just to get back to breakeven.
Because of this, we believe it is vital to always, always, always manage the risks of the markets.
We believe ALL investors should incorporate risk management strategies into their long-term retirement investments. And it is for this reason that we’ve developed the IRA-401K Manager Service – to help secure your retirement years and your retirement income.
Introducing the IRA-401K Manager Service
The IRA-401K Manager Services are professionally run, risk managed portfolios designed for longer-term retirement plans. The primary purpose of the service is to help you:
- Manage the ongoing risks of the markets
- Protect your nest egg
- Combat the vagaries of inflation
- Capitalize on growth opportunities when they present themselves
Four Time-Tested IRA-401K Manager Portfolios
The IRA-401K Manager Service includes four time-tested, risk managed model portfolios. Below is a summary of the target allocations for each of the portfolios:
- U.S. Growth:
- 100% "Risk Managed" US Stock Market Strategy
- Global Equity:
- 80% "Risk Managed" Global Stock Market Strategy
- 20% "Risk Managed" US Stock Market Strategy
- 60% "Risk Managed" US Stock Market Strategy
- 40% "Risk Managed" Bond Market Strategy
- 40% "Risk Managed" US Stock Market Strategy
- 30% "Risk Managed" Global Stock Market Strategy
- 30% "Risk Managed" Bond Market Strategy
How Have the Portfolios Performed?
We've been running the IRA-401K Manager Portfolios LIVE since 2007. While the performance tends to wax and wane along with the market, our intuitive allocations and built-in risk management strategies have led these portfolios to handidly and consistently outperform the market.
What You Receive
As a subscriber to the IRA-401K Manager Service, you will receive the following:
- 24/7 Access to the Portfolios
- Real-Time Trade Alerts for Position Changes (sent via email or text message)
- Weekly Portfolio Summaries
- Performance Updates
Easy To Follow
One of the most important aspects of this service is how easy to follow the portfolios are. We do all the legwork in terms of research and analysis, and then provide our members with real-time trade alerts whenever we make a move as well as concise weekly updates. By reviewing our strategy every single week, we feel confident that we will never be surprised by a change in the environment.
And while nothing is guaranteed in the world of investing, the bears should never take a big bite out of your retirement plans again.
To be clear, our IRA-401KManager Portfolios are long-term in nature. On average, we make about one move per month in the portfolios.
Let's Talk Price
The IRA-401k Manager Service provides "pro level" portfolios that can easily replace your “broke-r” recommendations and those underperforming mutual funds in your portfolio. In short, you can be your own portfolio manager for just $19 a month (annual and quarterly subscription plans are also available)
Wishing you green screens in your investment endeavors,
David D. Moenning
Founder and Chief Investment Strategist