The big brokerage firms are looking for “bond alternatives”
Here is a great example of an article from Mark Hulbert interviewing different Wall Street pros on their recommendations for who to use coming off the bench – http://www.marketwatch.com/
If you read this article (it’s pretty long), you will learn that the Wall Street Pros are recommending you replace your bonds with things like Real Estate Investment Trusts (REITs), Utilities, and / or Business Development Corporations (BDCs). All represent nothing more than a panicked hunt for yield.
What they aren’t telling you is that these bench players (to give a sports analogy) are on the bench for a reason – they don’t play defense very well. In other words, while they are out hunting for yield, they leave themselves wide open to downside risk. To you and I, that means you can lose a lot of money in these types of investments, much more than you can lose in bonds.
What is interesting is that all of these “pros” ignore an account that has been around forever that works extremely well as an alternative to bonds. In fact, for years, many non-Wall Street financial pros have preferred these accounts to bonds as they do a great job with providing steady income and principal protection.
I’m talking, of course, about old fashioned fixed deferred annuities.
Your principal is protected, interest is paid, and you have no worries about losing any money. Interesting that the Wall Street guys don’t want to talk about such a thing, isn’t it? Perhaps it’s because when you send money into fixed deferred annuities, you are taking that money away from the Wall Street guys so they can’t make money off of you.
If you would like to talk to our team regarding your retirement planning, feel free to give us a call at 916-509-7227. You’ll be glad you did.
Matt Golab was recruited to write a chapter in Tom Hopkins recent book, Victory which became a National Best Seller. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor.
Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years. The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight.
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Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market". Contact information for Matt is available at his website,
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