Stock markets are at all-time highs – even as the economy remains stuck in neutral. That has even the Wall Streeters nervous – and they’re preaching “diversification” to their clients.
But diversification will do little to protect an investor from an overall market “correction” (broker speak for: CRASH). Rather, diversification creates trading transactions – which trigger fees and commissions that line the broker’s pockets. Their advice is really in their interest – and delivers only an illusion of safety.
Meanwhile – the rich and famous have already put strategies in place to protect their money from a big market crash. They didn’t get rich by taking unnecessary risks. Can you and I play the game their way – and truly protect our money from a market nose-dive while still riding the market upward as long as it’s going that direction?
Yes – and the solution is simpler than you might think. It’s called “equity indexing.” An equity-indexed account grows with the market up to a certain limit. In exchange for giving up gains that exceed the earnings limit – our money is completely protected from downside risk.
A typical equity indexed account today might put a 14% limit on our upside, and a 3% minimum earnings floor on the downside – meaning we’ll earn 3% even if the market tumbles 40% as it did in 2008.
That beats the socks off of any Wall Street diversification strategy. But because you “set-it-and-forget-it,” it won’t trigger fees and commissions – so you won’t hear about it from your Wall Street advisor. Go ahead and ask. Then – let me show you how it works.
