It's YOUR Funds: Make Sure You Keep Control Of It!

It's YOUR Funds: Make Sure You Keep Control Of It!

One of the largest mistakes I often see investors make is needlessly losing control of their funds. Any time you pay a hefty commission or face surrender penalties in order to get YOUR funds you lose control. Losing control severely limits access to YOUR funds & limits your flexibility to make changes. This can trap you in an under-performing investment adding years to the time needed to reach your goals.

Whose funds is it? Is it your broker's, banker's or insurance agent's? No, of coursework not. It's YOUR funds. Don't think the lie that says you need to pay a gigantic commission or face years of burdensome surrender charges to get an advisor's help when you invest. It's basically not true. Are you able to imagine your doctor or dentist asking you to pay them for 10 years worth of service up front? Then a professional advisor shouldn't ask you to, either.

Sharon is a real-life example. Sharon became a widow a few years ago after her husband died of Lou Gehrig's disease. Her advisor put 90% of her funds in to variable annuities. Now her funds is locked up for 10 years! If they desires or needs over a tiny portion of that funds they will must pay a penalty that starts at 9%! That's tens of thousands of dollars in surrender penalties. Whose funds is it? It's her funds, but now they can't get at it!

Think about all of the reasons Sharon might need or need her funds over the next 10 years. Her health could deteriorate & they might need nursing home or home health care. Possibly they decides to move to a different part of the country to be closer to her grandchildren. Or they could select that they desires to buy a second home at her favourite holiday spot.

Her investment aim could alter. Possibly they doesn't feel comfortable together with her funds fluctuating & desires to put her funds in a CD at the bank. Her income or her tax situation could alter so that they no longer needs that kind of investment. But it doesn't matter, because now they can't get over a tiny portion of her funds for the next 10 years unless they pays thousands & thousands of dollars in penalties!

Notice in all of these situations that Sharon is the one who gets stuck paying the penalty. Not the broker or agent that sold it to her & definitely not the insurance company. It makes you wonder who benefits most from these transactions. It obviously isn't Sharon!

None of us knows what tomorrow holds. So it's important to maintain the flexibility to access YOUR funds! Thousands on thousands of investors have seen the worth of their investments drop substantially & because they are in a similar situation to Sharon, they have only limited flexibility to make adjustments to their portfolio.

Brokers would have you think that the whole market is down & there isn't anything you can do. That's not true. For example, sure Actual Estate Investment Trusts have provided an stunning level of income without facing the wild fluctuations of the stock market. Portions of the bond market have enjoyed double digit gains in 2002.

Besides, there's no need to pay a gigantic commission or have long surrender penalties. My clients don't. They pay me a tiny ongoing fee in lieu. They get professional advice & access to investments they can't otherwise get but they keep control. They can access their funds whenever they need without surrender penalties. They can quickly modify & modify their portfolio based on market conditions & changes in their situation.

Learn from Sharon's mistake. Don't let yourself be talked in to an investment with a hefty commission or a long period of surrender penalties. Don't put all of your eggs in one kind of investment basket irrespective of how safe it is or how plenty of features it's. & seek the advice of an experienced, professional advisor who gets paid by fees in lieu of commissions.

It's YOUR funds. Don't let somebody talk you in to losing control of it.

http://www.ixgw.com/2010/06/it's-your-funds-make-sure-you-keep-control-of-it/

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