Wow, we must admit, we were DEAD WRONG!
As Annuity Guys, we tend to avoid sticking our necks out on economic issues we can’t control such as a stock market downturn. It is much easier to just say “who really knows” and play it safe since investors still value annuities in both bull and bear markets.
Many of our clients and website visitors ask our opinion about where we think the stock market is headed. So, (necks out) here it is. We believe that in the next 12 months, we will see a serious stock market decline. If the economy stays out of a recession, we expect a drop of 15 to 20 percent; and if we slide into a recession, the decline could be in excess of … [continued below video]
Video: The Annuity Guys, Dick and Eric, Make a bold but incorrect 2017 Market Prediction & Advise You to Get Your Plan in Place!
Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
[continued] …50 percent. This is not to scare anyone just to state what we believe for the record! Our opinion is simply based on data we interpret. We are not economists; however, we do listen to all sides and feel that in the spirit of helping our clients and those that follow our blog, it is only fair to state what we believe is about to happen. Now, let’s discuss some of the forces we see in play and some ways you might protect your own financial well-being if our prediction is correct (or even if isn’t).
What goes up must come down or so they say! However, defying gravity has been accomplished by numerous inventors with varying degrees of success. Eventually, airplanes and rockets that do defy gravity temporarily must land and space travelers eventually return to earth. Hence, it appears that gravity ultimately wins. So, what is the gravitational pull at play with the stock market? History tells us that something causes the stock market to peak and then begin a precipitous and at times a tumultuous decline.
One of the primary gravitational forces appears to be the price of stocks compared to the earnings of the companies issuing the stock. In other words, everybody wants a bargain and astute investors know when they are getting bargains or paying too much using these ratios. On the other hand, less astute investors tend to buy stocks more on emotions of supply and demand having the belief that laws of gravity will not affect them because other investors wouldn’t be buying if stocks were overpriced. They seem to rationalize that there are more buyers than sellers, so supply and demand will sustain a never ending bull market or so it seems to the less astute. When the bear market ultimately appears, many astute investors who follow history and understand market fundamentals like P/E ratios have already found safe cover to wait-out the bear.
Now, the unthinkable happens. The less astute buyers in mass turn into sellers and you have some degree of 1929, 2000, and 2007 panic selling starting all over again – as if no one had a clue that a bear was lurking or even dangerous! Hence, with P/E ratios nearing 30 percent higher than they were in 2007 and are only lower than two other years 1929 and 2000 which were followed by tumultuous declines, you begin to see why more caution may be justified. We will not bore you with a lot of statistics and analysis other than to direct you to the article below with twelve interesting charts provided by John Mauldin and several other financial heavyweights. Here’s the important question you should be asking; what should you be doing if you agree with our prediction?
First of all, if your portfolio is properly balanced, you probably do not need to change anything (as we discuss in our videos). If you have never addressed your retirement planning in a holistic way by assuring adequate foundational income streams to cover your lifestyle needs and wants (which may or may not include annuities) with other money designated for growth, liquidity and health needs, then you may be in some trouble, especially if you are relying too heavily on the market alone for most of your retirement’s success. It is never too late… until it is! Plan soon, procrastination is one of the biggest enemies facing retirement. No retirement planning is actually planning by default. In fact, “no planning” is possibly a retirement disaster just waiting to happen!
With a holistic retirement plan in place, stock market declines are anticipated and embraced with the knowledge that your core retirement can wait-out the downturns! With a properly balanced plan, you can be the astute investor – knowing that you have taken the necessary precautions to protect yourself when the bear appears, and as soon as the bear retreats you can easily move ahead of where you were before. While others are licking their financial wounds, you can ride the bull!
Here is John Mauldin’s article, mentioned above with twelve charts that may help your research.
A few weeks ago, I spent two days giving multiple speeches alongside my friend Steve Blumenthal of CMG in New Jersey. I listened to Steve do deep dives on stock market valuations.
Steve puts a great deal of research into the topic, so I asked if he could share some data from time to time, and he agreed. With his help, I compiled valuation measurements used by people who know what they’re talking about.
Not surprisingly, they all point to the fact that equities are pricey. But what is surprising is the degree of overvaluation—we are talking about the risk of a 60% decline.
Below are 12 charts that paint the whole picture best. Let’s jump in.[Read More at Business Insider…]
Using OutCome Based Planning™ for Your Retirement
We practice and recommend a "Holistic - OutCome Based Planning™ process when considering annuities." This approach has the effect of balancing your overall portfolio so you can meet your retirement objectives by "first identifying the least amount of your investments or savings (if any) that should be considered for annuities." OutCome Based Planning™ analyzes and models multiple outcomes so you can clearly identify your best income and growth opportunities.
"The Annuity Guys will only call if you request help". Hence, when you are ready for specialized help we will be available."Working with an Experienced Fiduciary Financial Planner can help you Avoid a Trial & Error or Risk Based Retirement"
This type of approach does take considerably more time, effort and analysis which will show you mathematically the successful possibilities by comparing various outcomes rather than trying to sell or convince you of that "so-called one best solution." Clients frequently tell us that this process removes some of the confusion and emotion to help them objectively identify a better retirement plan; rather than just ending up with the most convincing salesperson or advisor.
When requesting help you can be assured of working with an experienced Annuity Guys' Retirement Planner who is independently insurance licensed and securities licensed as a fiduciary financial planner having access to the vast majority of annuity companies in helping you choose the best annuities using a holistic-outcome based planning approach. We consider the high quality advisor recommendations we make to our website visitors as a direct reflection back on our commitment to serve all client's with a high standard of excellence in financial planning for retirement.
Based on survey feedback on advisors from our website visitors, we eliminated about two-hundred local advisors and now only recommend a few that we consider experienced vetted Annuity Guys' Fiduciary Advisors. Many local advisors continue requesting us to recommend them as a vetted advisor. However, our reputation and future business is driven only by satisfied website visitors. So, unfortunately we've had to tell the vast majority of local advisors no, since we changed our business model four years ago. At that time we stopped trying to satisfy everyone with local advisors, we now primarily work with individuals who are comfortable using today's internet technology to their fullest advantage by working with a select group of vetted, experienced and knowledgeable Annuity Guys' Fiduciary Planners.
Selecting the Best Annuity & Retirement Income Advisor
Are you willing to work with one of our retirement and annuity advisors based on their experience and expertise as a first priority rather than being limited by a local or regional area? The good news is that technology has forever eliminated our geographical limitations and leveled the playing field for everyone! As a result of today's technological advances, all of us can now work confidently with experts in any field including personal finance. We are no longer confined by regional or local boundaries limiting our choices and ultimate success. A high quality advisor is now as close as a click or phone call away.
"There is no room for trial and error when it comes to choosing MarketFree® Annuities or a Successful Retirement Planner."
"There are no undo buttons in retirement so it is vitally important that you do it right the first time!"
We are fortunate to have a select few who we believe are truly the highest qualified advisors out of about two hundred licensed insurance agents that we eliminated. Your survey feedback is what helps us make these tough decisions. Our advisors have an independent financial practice, specializing in annuities and retirement planning, which helps ensure that you are given the best options available for your retirement planning.
"It takes an experienced expert to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage."
"Anyone can sell you an annuity; however, it takes a truly qualified and experienced advisor to know how to structure them for income, inflation, growth, return of principal, and tax advantage. Typically, there is not just one that can accomplish all of these objectives. It is how an advisor structures multiple annuities in balancing your total portfolio that makes it possible to achieve your most important retirement objectives."
Why Searching for the Best Annuities on Your Own Can be so Frustrating...
Almost everyone nowadays turns to the internet for answers on everything - from buying new widgets to researching just about everything under the sun; and finding the best annuity is no exception!At first, it may seem that researching will be straightforward but the more time you spend researching them, the more frustrating it can be. Why is this? First of all, it does not take long to realize that gimmicks abound - such as warnings and alerts from salesmen who just want your attention so they can sell you one or the "too good to be true" claims of 8% to 14% **guaranteed interest and of course the claim that you can get the full market upside with no downside risk! If you have done any research you have heard all of these claims in advertising which are mostly half truths and not fully explained.So how can you find the best annuities on the internet? The truth is... you can't! And what is even more frustrating is all the conflicting points of view from so called experts. There are well over 6,000 different annuities - all designed for different reasons, so is it any wonder that the deck is stacked against the average researcher or do-it-yourselfer. Add to that the fact that they pay high enough commissions to attract a plethora of both good and bad agents. This does not make annuities good or bad; they are simply a financial tool that truly benefit those who use them correctly.How can you find the best annuities for your unique situation?- Use the internet cautiously;
- Work with a vetted and experienced specialist;
- Do not settle for that one dubious best plan. Compare multiple Outcome Based Plans to decide on the one that is truly best for you;
- Be keenly aware of scare tactics and hyperbole - avoid those advisors and websites;
- Avoid websites that are focused on rushing free reports, rates and quotes to get your contact information they are rushing you to speak with them, instead, take your time and choose someone you are more comfortable with that works on your time-table;
- Know the Five Vital Factors (listed above) that an experienced specialist must answer before helping you select the best options for your situation;
- Watch this telling video "Avoid Annuity Gimmicks, Amateurs and Charlatans"...
** Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Annuities are not FDIC insured and it is possible to lose money.
They are insurance products that require a premium to be paid for purchase.
Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.
During all video segments, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
*Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping our website visitors. Dick Van Dyke semi-retired from his Investment Advisory Practice in 2012 and now focuses on this website. He still maintains his insurance license in good standing and assists his current clients.
Our vetted and recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)
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- MarketFree™ Annuity Definition: Any fixed annuity or portfolio of fixed annuities that protects principal / premium and growth by remaining market risk free.
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