HOUSTON — The recent downturn in the stock market has a lot of investors worried about their retirement funds, but there are ways to protect your investments.
Deborah Duncan talked with Michael Wegner, President and CEO of Lifestyle Financial Advisors, about what we can do to keep our money growing. Wegner said this is a great time to review your long-term plan and make any changes necessary. It's a time to take advantage of opportunities. Many companies are oversold, so there are some great buys right now.
Wegner said it's important to have downside protection, using diversification, asset allocation and a discipline with a stop-loss protection. In early March, this allowed many investors with Lifestyle Financial Advisors to move 50 percent to cash while the markets were falling. This helped save them from the additional market loss. Now, these investors are enjoying recovery as the markets move back up.
One example Wegner shared: if you have $100,000 invested and lose 10 percent, you now have $90,000. It will take 11 percent to get your principal back. If you lose 25 percent, you will have to make 33 percent just to break even. Lifestyle Financial Advisors believes managing downside risk is just as important as managing for growth.
One great tool to check out is the 401K Optimizer. It is a service provided by Lifestyle Financial Advisors to help investors with their 401k, 403b, and 457 plans. It is a web-based tool that gives personalized advice to manage your plan and give access to stop-loss protection. It is important to know that your money stays with your company plan. Lifestyle Financial Advisors provides the investment recommendations specific to your needs. If your company is not on the current list, call Lifestyle Financial Advisors at 281-992-9220 and they can get your company added.
Wegner also said if you have lost employment during this crisis, there are options with your current plan. Lifestyle Financial Advisors can help with rollovers and short-term income strategies so you can get back to work.
Lifestyle Financial Advisors has a special offer for Great Day Houston viewers: get a complimentary consultation, plus access to the 401k Optimizer at no cost. Just log on to 401koptimizer.com and use promo code "LIFESTYLE".
For your complimentary consultation, call Lifestyle Financial Advisors at 281-992-9220.
For more information, log on to MyLSFA.com.
This content sponsored by Lifestyle Financial Advisors.