Dispelling the “Market Crash” TV and Radio Propaganda

By Michael J. Searcy

You have probably heard the TV and radio pitches that go a little like this: “If you are worried about the ultimate crash of the market and you don’t want any risk, we can guarantee no loss in a down market. You could get up to double digit gains without any risk and an income stream that continues to rise, even in down markets! Find out what your financial advisor hasn’t told you and what he probably doesn’t even know about.” We hear them all the time, and believe it or not, even a seasoned investor can be lured in by these claims.

It makes sense that so many people are attracted to these pitches. I mean, it sounds pretty good, doesn’t it? These ads are designed to make you fearful of the “ultimate market crash” and make you feel like your advisor might not be “in the know” about the secret sauce being touted. If your financial advisor hasn’t discussed this “solution” with you, don’t assume they haven’t heard and contemplated the strategies. When an advisor embraces their fiduciary responsibility to you and doesn’t share these types of “guaranteed” solutions, chances are they believe these products are inappropriate for you – at least for your current situation.

Oh, you’re wondering what this magic product is? Well, it’s an annuity. Bummer, that’s pretty boring – and old news. Yes folks, all the hoopla is about annuity products. Granted, there may actually be a place for this product as part of your overall retirement strategy BUT you really need to get clarity about the pros AND cons of annuities before making the plunge. Let us know if you want to hear more. We are happy to discuss this subject with you to determine if annuities are most appropriate for your overall objectives.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Searcy Financial Services, Inc.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.  

Published for the blog on April 1, 2015 by Searcy Financial Services, your Overland Park, Kansas Fee-Only Financial Planner and Investment Manager.