3 Risks to Your Client's Portfolio
Longevity
As life expectancy has risen dramatically, a married couple has a 50% chance that one will live past age 90.
---------------------------------
spending power
As life expectancy has risen dramatically, a married couple has a 50% chance that one will live past age 90.
$1000
year 2000
$646
year 2000
spending power
Inflation
Rising interest
rates will
lower bond
returns.
Rising interest
rates will
lower bond
returns.
Rising interest
rates will
lower bond
returns.
Help reduce risk with bond alternatives
Help reduce risk with bond alternatives
One could reallocate the outdated 60/40 strategy to an 80/20 mix with the aim of achieving higher returns that could help offset the risks mentioned above. However, market risk will greatly increase.
SOLUTION
Shake up portfolios with a Fixed Indexed Annuity. Here’s an asset allocation strategy that could help increase managed money returns while also providing reliable fixed income for your clients: 60/30/10.
Here's a hypothetical example that shows how repositioning 30% of a portfolio into WealthChoice FIA could be beneficial. The output is from Horizon Investment's REAL SPEND® retirement planning software: