Growth Based Investments Versus Asset Based Investments

Out of 100,000 responders to the survey these answers were very interesting.

What is the amount of liquid cash you can get your hands on in 24 hours?

$4,000

What is the number one concern of senior adults?

Being alone and forgotten and not having enough money.

What was the number one reason for financial devastation for seniors?

Lack of money!

Sort of a funny answer but on closer examination it is more involved than that. Had they not planned? Did they make poor decisions? What was the answer?

The answer was really a hundred different things from health problems, to poor investments to the inability to manage money. But the real answer after you shrink down all the answers was two fold.

Inflation and taxes

These are the monsters waiting for all of us and the things we seem to plan for the least.

What is the difference between growth-based investments and asset based investments? Don’t all investments have assets? Yes they do, but more importantly it has to do with what the real goal is of the investment.

Financial planners and brokers will approach the situation by saying you need to have funds invested in some risk area.

But my view is a little different.

If at retirement or at the later part of your life you have not yet accumulated the necessary funds to the type of retirement you dream of….you are not going to do it then!

There is no way you can magically make the necessary funds appear and no way can you have a better retirement than assets that have been accumulated.

I think at this time of your life you cannot take any chances and you must think in terms of asset based plans instead of any real growth based plans.

It must be money on deposit and it must not have any risk of any sort.

Your choices for risk free funds are:

• Banks accounts insured through FDIC
• U.S. Treasuries
• Insurance company annuities

The real concern is inflation and how do these safe and secure choices help against inflationary worries. Sorry to say but they really don’t.

What are the options then?

The only choice that makes any sense at all is annuities. Why? Because of this.

Annuities at any time can go from money on deposit to an income stream that can never be outlived. This income stream can include spouses and other family members if desired. A safe secure income stream removes stress because the check comes each and every month and it will be there are long as you are.

Consider annuities as an obvious choice for important money and for money that always need to be there.

Bill Broich is a 30 year annuity salesman who helps seniors protect and grow their life-savings. Visit his website for a free annuity quote. Annuity.com (www.annuity.com)

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