To Diversify or Not to Diversify

Can we agree that investors should diversify their portfolios across asset classes?  Can we also agree that the reason investors diversify across asset classes is to manage risk and portfolio volatility?  So, what if you are investing in a fixed indexed annuity, where you can’t lose money to market losses?  Do you still need to diversify?  Does the reason you …

Sequence of Returns: A Closer Look

We are all familiar with the concept of ‘sequence of returns’ risk: the idea that the sequence in which the investor experiences returns in the early years of retirement is crucial to whether the investor will have enough money to last the rest of his or her life. We know that positive returns during the early years of retirement will …

Positioning Annuities in the Midst of a Volatile Stock Market

These past few months in the markets have been a roller-coaster ride, with volatility spiking and many investors feeling like they have experienced financial whiplash. With emotions running high for investors who have received some pretty discouraging December brokerage statements, we as financial advisors need to determine how we can effectively communicate to them the value of fixed indexed annuities …