The Alemian File: Market Losses

Have you ever lost money in the stock market? Well, how would you like to prevent that from ever happening again?

Market losses are one of the biggest reasons that so many doctors are not prepared for retirement. If you have been following The Alemian File, then by now you should know that Market Losses are one of the “7 Retirement Killers.”

Is there a place for stocks and mutual funds and other risky investments in your retirement plans? Yes, but only after—the key word here is AFTER—you have enough retirement savings put away in what are known as safe-money vehicles.

Let me ask you a question with an obvious answer. Should you go to Las Vegas and then come home and try to figure out how to pay your bills? Or should you pay your bills first, and then if there is money left over go to Las Vegas? Right........Pay your bills first.

When it comes to retirement, most people go to Las Vegas first, because Wall Street is the largest casino in the world. All those mutual funds and stocks are nothing more than the table games and slot machines in the casino. The financial advisor who sold you those mutual funds and/or stocks, he or she is nothing more than the dealer, there to take your money while you take all the risk. You can win in the short run, but in the long run you will probably lose.

You got a late start in your career, you don’t have that much time to save for retirement; you can’t afford losses. You hear financial advisors say, “Don’t worry about losses. Just stay in the market, the market always comes back”. The truth is, the market has all the time in the world to come back, but unfortunately you don't. Time is not on your side, and if you listen to those who tell you to put your financial future at risk in the markets you will not have enough money to last through your retirement.

So let's get to the solution: Use a properly structured, indexed universal life insurance policy with critical and chronic illness riders as your primary savings vehicle. If the market goes up you will get a reasonable rate of return—on average between 8% and 9%. If the market goes down, you’ll still get up to 2%, depending on the policy. That one step will protect you from market losses, and the riders will protect you if you need long term care. If you haven’t done so, check out Episode #3 of The Alemian File here on Physician’s Money Digest. It’s called “The Physician’s Retirement Plan.” It will give you the key to having a comfortable retirement for yourself and your spouse or partner.

If you have questions send an email to David@TheAlemianfile.com. Be sure to come back here next week to Physicians Money Digest for another edition of The Alemian file.

For more information, visit PhysiciansRetirementPlan.com and TheAlemianFile.com.