You’ve probably heard the phrase, “Hindsight is 20/20” or, “Looking in the past is the clearest way to see the future.” While these phrases are often true, people don’t always learn from their mistakes – especially when it comes to investment decisions.
In summer 2016, the market experienced record low Treasury yields. During that time, many clients and advisors failed to review historical trends and move assets into alternative investments.
Looking back over the past 10 years, numerous financial and non-financial events rocked the market. Did you and your clients invest funds strategically in response to these events, or did you miss a good opportunity?
While you should be optimistic about yields increasing over the next three to five years, in the meantime, you must get your clients focused on how to generate income in retirement. You can’t allow the past to dictate your clients’ future. Clients are often focused on reasons not to save or invest, so it’s crucial to educate them on the proper products and asset allocation to maximize their portfolio.
While clients often allow past economic conditions to dictate their current financial decisions, take the opportunity to educate them about promising investment opportunities and optimize their funds to achieve their retirement goals.
Mike McGlothlin is the Executive Vice President of Annuities at Ash Brokerage. His strength is helping advisors become more efficient and effective in their businesses. He and his team provide income-planning solutions focused on longevity and tax efficiency, and they also assist advisors with entering defined-benefit termination planning and structured settlement markets.
© 2018 Ash Brokerage LLC.