The above graphic illustrates growth and its correlation to the risk/reward spectrum. Over the course of the past decade, high risk/high growth potential solutions offered by stocks, mutual funds and variable annuities have benefited or rewarded clients categorized as “investors”. However, many investors reacted to recent volatility spikes by transitioning from the mindset of investor (high risk) to “saver” (low risk). Ideally, a saver wants protection from stock market losses, uses the power of compound interest to build net worth, seeks simple, predictable, easy to understand safe money alternatives and requires access to their money over time.
As your clients move into the senior market, there is more time behind them than on the horizon. As their advisor, you must help them recognize the hard truth that a portion of their portfolio must transition from investor to saver mentality. This transition will embrace the use of solutions like fixed-index annuities, fixed annuities, CDs and cash. Growth is an ever-evolving concept as your clients bridge the gap between the phases of career to retirement.
Are you offering the right GROWTH solutions for your clients to match their tolerance on the risk/reward spectrum? Call me at 866.866.7050 ext. 1105 to discuss helping your clients in their transition from investor to saver.
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