 It would be the biggest understatement to mention that the majority of Americans are hurting financially as far as their investments – and particularly their nest eggs – are concerned. The S&P 500 Index, for instance, lost approximately 38.5 percent of its value in 2008. To bring this point home, a hypothetical nest egg valued at $500,000 on January 1, 2008 would have had a balance of $307,500 as of December 31, 2008 – assuming no withdrawals and that no fees were accessed on it. That is a reduction of $192, 500 in one year! For this account to "regain" its value, back to the original $500,000, the S&P 500 Index must gain 62.6 percent, a virtually impossibility by the end of 2009.
On the other hand, some were counting on augmenting their retirement nest eggs with portions of the equity in their homes, by selling them and downsizing to smaller and/or less expensive residences. These individuals have witnessed their equity diminish significantly or completely vanish, coming to the unfortunate conclusion that their piece of real estate is not nearly as marketable today as it was a few years ago.
What’s the chance of a 62.6 percent rebound?
The continuous decline of the stock market is particularly damaging to those already in retirement or close to it, if they have their  savings directly in the market. Laser Financial Group believes and teaches that no one should find themselves in such a predicament with their serious cash. Some may argue that the current situation is only temporary, or that it is not a “real” loss. Others may even dismiss our viewpoint by arguing that we are focusing only on one bad year. As they usually do to calm frayed nerves, their solution is to take a long-term view.
Our position is that if you have been investing directly in the market for the past, say, 30 or even 40 years, based on our example, you lost 38.5 percent of the entire amount you had accumulated to that point. So where does that leave you? How do all those years matter to you now? And, most importantly, what is the likelihood that the market will post a gain of 62.6 percent this year so that your account will “regain” its value?
We only wish those facing this calamity still had 10 or more years (the long-term, as those so-called experts put it) to wait for their life’s savings to rebound to where they were at the start of the current downturn. Sadly, that is not the case for most. And, who knows what the next 10 years are going to be like?
Our clients have not lost a penny!
In spite of the market’s cataclysmic drop, our clients have not lost a penny of their investments’ values. In fact, most gained 5 percent during the same period that the majority of Americans were scrambling to “save” their already depressed portfolios from further turmoil. We believe and teach that in planning for financial security, Americans must be positioned to act, rather than react, to circumstances over which they have no control – like movements of the stock and real estate markets.
We utilize a powerful, common-sense strategy that contractually provides downside protection against losses, without sacrificing competitive equity-linked performance during the good times. Applying our approach to the example above, the account would have ended 2008 with a balance of $525,000 (5 percent contractual guarantee). BUT even if the account still had only its $500,000 balance intact in the face of this market turmoil, how remarkable would that have been for so many worried investors?
Learn about a safer route to a secure retirement 
Feeling open-minded? Want to discover the safer, sheltered route to a more secure retirement? Contact us today and explore amazing but proven, common-sense strategies about:
How to prevent losing the equity in your real estate when values plummet
How to access your savings tax-free (including the gains) without having to wait until age 59½ , without IRS penalties, and without being obligated to repay it.
How to avoid paying tax on up to 85 percent of your Social Security benefits.
How to transfer savings to your heirs, income-tax free.
Please call (301) 949-4449 or visit www.laserFG.com now to schedule your no-obligation consultation.
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