What if the Stock Market Didn’t Exist?

Americans are addicted to the stock market – the most overused investing tool on the planet is the

Americans are addicted to the stock market – the most overused investing tool on the planet is the mutual fund. LONG after we have too much money to need Mutual Funds (around 25k-50k), we continue to use them because some fee-hungry retail mutual fund salesman gets paid to keep us in them. If the stock market didn’t exist, and you had to use other tools, you could easily still earn the same returns, if not more than what the stock market has been paying you. 

Let’s begin with a very true cliche:

You do not know, what you do not know.. yet.

That will never become untrue. Everything I teach, has had a time where I did not know it…yet. The Renovating Retirement Podcast exists to allow you to learn what you don’t know.

The stock market is an unnecessary tool

You don’t need it. You should only use the stock market if you want to. On my instagram page, I’ve posted a picture that explains the question of, what if the stock market did not exist?

All portfolio management, is built up of things that go up and down. This is the way it used to be.. we would put money into cash or money market accounts to make 2-4%. We allocated other money to try too make 4-6% in bonds for some safe growth and put the rest in stocks to hopefully earn 6-8%.

All portfolio management basically tries to match your risk tolerance to how much of your money should be in the following buckets (of securities only, mind you).

  • Conservative (2-4%)
  • Moderate (4-6%)
  • Aggressive (6-8%)

A huge issue today

Besides the overuse of Mutual Funds and other market tools, one big issue today is the first two buckets, conservative and moderate, are not doing their job!!! Cash and Money Market accounts are not paying 2-4% and bonds are not paying 4-6%. Since 2008, stocks have done well but have not done well over other time frames. How do we get the same results in a completely different environment?

Let’s think outside the box. What if you didn’t have the option to put money at risk in the market? What if you moved 100% out of the market and built a retirement plan using less popular alternatives?

The StockLESS Portfolio

Most people don’t realize that the StockLESS Portfolio not only STILL pays 2-4% for Cash, 4-6% for safe growth, and 6-8% for the aggressive growth, but it also comes with some very exciting benefits.

How does NO FEES or LOWER FEES Sound?
How does NO LOSSES sound?

Does that sound better than “risk with a side of fees”?  Here’s just on option of how I might build a StockLESS Portfolio for one of my clients.

  • Modified Endowment Contract (Single Premium Life Insurance Contract with Return of Premium Rider to avoid any penalties).
    • There are only two products in the whole country I would consider using but they are amazing!
    • This has been paying 2-4% with no losses and very low fees.
  • Growth Annuities (No Fees, No Losses Indexed Annuities).
    • The best products have been averaging 4-6% easily.
    • You can even have 50% of the S&P 500 growth, with no losses and no fees right now!
    • These do what bonds used to do for us.
  • Tax-free Insurance contracts (Rich Man’s Roth IRA Strategy).
    • Built the right way, nothing beats this tool.
    • 6-8% tax-free with low fees, no losses in down years and LTC that someone else pays for.
    • Powerful tool when built properly.

Then why isn’t everyone doing this? This sounds too good to be true.. but it’s not! It does exist.

Here’s the reality: Advisors don’t like this type of plan because they only get paid once and don’t get the “mailbox money” continual lifetime pay they have become used to, with managed money and a “portfolio” of mutual funds. It’s not popular because it’s better for you but worse for the salesman.

For you though, the StockLESS Portfolio may give you higher returns and will surely give you more peace of mind as you try to get to and through retirement.

Contact me for more information or questions about your new retirement plan!

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