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Living with Market Uncertainty
November 14, 2008 - Ben Feldman
I have been in the financial investment business for over twenty years. Before that I was only an investor. I have made and lost money. That qualifies me as an expert because I bear the scars of irrational exuberance. That is, madness investing. Don’t get me wrong, I love the market. I just know you can’t predict earnings or Dow Jones averages. I’ve not met one stock broker who is a stock market clairvoyant. So what do you do today? Put cash into CD’s or money market accounts? Well, if your banker serves cookies, perhaps that’s the best place. It all depends on your circumstances. If you need liquidity, the money market is your choice. There are, however , better places to put your money for safety and respectable returns. But first here is a useful tip. If your banker gives you cookies, give him your money, if you like cookies. If he gives you a toaster, you have hit big time. A most misunderstood and much maligned financial investment is the annuity. How many of you are confused about annuities? Many of you, I am sure. I’ve sold many annuities and when I get resistance it goes like this: “ Well Mr. Customer I would suggest a fixed annuity in your situation.” The customer responds,”I don’t like them”. “Why?” I ask. “ Because my neighbor bought one and had trouble. He couldn’t get his money out.” “What kind of an annuity was it?” “I don’t know.” “What were the circumstances?” “I don’t know.” “What does your neighbor do for a living?” “He’s a hod carrier for a construction firm.” Here’s another useful tip. Hod carriers are not financial advisors. Fixed annuities are safe. They guarantee thei r principal, their interest, and you don’t have the risk. You get peace of mind. Today that seems like a novel thing to have. Also, the best fixed annuity is the fixed indexed annuity. You can get safety and growth and a bonus interest rate. Frankly, that is the place to be. The author of this column is Ben Feldman, President of The Wexler Group. Comments and questions Can be emailed to firstname.lastname@example.org or you can call him at 239 297 2070.
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